Prof Col (Retired) Manzoor Iqbal Awan - Spring 2013-Bahria University-MBA 3 B-Total Quality Management (TQM)-Student Research Projects Compilation

Total Quality Management

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TOTAL QUALITY MANAGEMENT

FINAL PROJECTS OF MBA 3B - SPRING 2013

SUBMITTED TO :

PROF COL (RETD) MANZOOR IQBAL AWAN

COMPILED BY : FATIMA ZARA


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Sr. No

Table of content

1

WE – the MBA 3B

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3-6

2 Teacher’s Note

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7

3

Compiler’s Note

8

4

Geo TV

1. M Memosh Parvez Baig (Leader) 2. Hafiz Usman Rana 3. Mubashir Abbasi

9-33

5 Fauji Fertilizers

1. Muhammad Hassaan Tirmizi (Leader) 2. Irfan Ali 3. Mohsin Ali 4. Taimour Khalid

34-56

6

Muslim commercial bank

1. Saad Saleem (Leader) 2. Ali Farroqi 3. Arooj Tariq 4. Aftab Nawaz

57-88

7

Marriot Hotel

1. Saad Mazhar (Leader) 2. Hira Sheikh 3. Usman Malik

89-141

8

Honda Motors

1. Hafiz Zeeshan Aslam (Leader) 2. Majid Hussain 3. Rizwan Yousaf 4. Saqib Jamal

142-170

9

K&N’s

1. Gulzaib Akram(Leader) 2. Asim Ramzan 3. Fahad Anwar Chaudhary 4. Syed Mohammad Hammad

171-202

10

Al-Shifa international hospital

1. Shehzada Suleman (Leader) 2. Azrim Abbas 3. Zeeshan Tahir 4. Akhtar Hussain

202-244


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WE ..THE MBA 3B..


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Teacher’s Note

There is little doubt in my mind that our youth of today is very talented, and need to be shown the right direction by parents and teachers to actualize their full potential. Of course importance to personal and professional grooming can hardly be overemphasized. This talent can be best harnessed by the academic institutions, especially those working at higher levels. In my own humble capacity as visiting faculty at different universities, I strive to provide an environment conducive to thinking out of the box.

Like all my other classes, the students of Masters of Business Administration 3rd Semester Section B (during Spring 2013 semester) at Bahria University Islamabad were assigned group projects related to Total Quality Management course work. They not only attempted these assignments with fair degree of success and produced some interesting reports but also successfully presented their reports and conducted valuable discussions in the class as part of our overall learning drive.

There is a need to appreciate these first attempts by budding business professionals– notwithstanding the fact that there is considerable room for improvement in these. What is of special significance is the commitment with which the groups completed these projects, and displayed a remarkable degree of cooperation. These reports could also be improved through further study and research by the students that follow. It is with this thought that these write ups are being compiled for appropriate placement.

I shall like to acknowledge the efforts put in by Fatima Zara in this compilation. I wish the contributing students as well as the compiler success. May Allah Almighty be their guide. Ameen.

Prof Manzoor Iqbal Awan, Col (R) Faculty Member and Senior Consultant * USQ (Australia), COMSATS & NUML * Bahria, Air & Preston Universities * University of Lahore * Dual Matrix Inc. & MDi Cell: +92 300 854 3122 Email: [email protected] & [email protected] Profile: www.linkedin.com/in/manzooriqbawan

Islamabad 30th May 2013


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Compiler’s Note

First of all I would like to thank Almighty ALLAH for the completion of my task 2successfully, I feel honor to work with Manzoor Iqbal Awan as a compiler and he believed on me to be selected for a totally new and different task. It would be quite difficult for me without the kind support of my teacher throughout the semester . I have found my task i.e. to compile all final projects of my class pretty interesting and it was definitely a great experience for me, it was a immense source of learning which helps me to increase my skills and knowledge, I have learnt how to do things in proper order. My class mates has also cooperated with me , and provided me all the data in time. It required a proper time management, I have put in my level best efforts for this task.

This file is composed of all the final reports on quality improvement in different organizations.


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TQM

HAFIZ USMAN RANA MUBASHIR ISHFAQ ABBASI MUHAMMAD MEMOSH PERVEZ


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Contents ACKNOWLEDGMENT: ...................................................................................................................... 11

INTRODUCTION: ................................................................................................................................ 11

ABSTRACT:......................................................................................................................................... 13

STUDY QUESTIONS:.......................................................................................................................... 14

PROJECT DESIGN AND ITS IMPLEMENTATION: .......................................................................... 15

MISSION STATEMENT: ..................................................................................................................... 17

VISION STATEMENT: ........................................................................................................................ 17

ANNUAL OBJECTIVES: ..................................................................................................................... 18

TOTAL QUALITY MANAGEMNT OF GEO ...................................................................................... 18

BENCHMARKING: ............................................................................................................................. 18

QUALITY COUNCIL: .......................................................................................................................... 19

CONTINUOUS IMPROVEMENT: ....................................................................................................... 20

RECRUITMENT OF EMPLOYEES: .................................................................................................... 21

EMPLOYEE TRAINING: ..................................................................................................................... 22

EMPLOYEE MORALE: ....................................................................................................................... 23


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PERFORMANCE MEASURING CRITERIA: ...................................................................................... 24

CODE OF ETHICS: .............................................................................................................................. 25

ROLE PLAYED BY SENIOR MANAGERS: ....................................................................................... 26

SWOT ANALYSIS: .............................................................................................................................. 26

Strengths: .............................................................................................................................................. 26

Weaknesses: .......................................................................................................................................... 28

Opportunities: ....................................................................................................................................... 28

Threats: ................................................................................................................................................. 28

PRODUCT DESIGN: ............................................................................................................................ 29

OBSTACLES IN ACHIEVING QUALITY:.......................................................................................... 29

INTERNAL AND EXTERNAL CUSTOMERS AND THEIR FEEDBACK: ......................................... 29

PROBLEMS IN CUSTOMER RETENTION: ....................................................................................... 31

USE OF JURAN’S TRIOLOGY: .......................................................................................................... 31

RECOMMENDATIONS: ...................................................................................................................... 33

CONCLUSION: .................................................................................................................................... 33

ACKNOWLEDGMENT:

DEAR ALLAH, thank you for blessing us with the gift of knowledge to celebrate your glory with love and devotion, perhaps this is the modest way for us to thank.

SIR MANZOOR IQBAL, our respectable teacher, thanks for being with us in all difficult and hard times. We really thank to him for his help and guidance. Due to his co-operation we are able to do this project in more decent and quintessence way. We are also very much thankful to our parents for their co-operation in all aspects of life. We are here due to their prayers and due to their co-operation in all obstacles of our lives. Also thanks to our friends for encouraging us in difficult time, and supporting us whenever we need them, Thank You.

In the end, we pray to Almighty who loves listening to our prayers, please accept this humble thank from us with gratitude and devotion.

Thank You!

INTRODUCTION: The project is about the total quality management of GEO TV which is one of the leading

channels of Pakistan and if it is said that it is the first private news in the country then it will

not b wrong as Geo started its operations in 2002 and is the pioneer in this field. Geo TV was


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started in 2002 with a well known sitcom named “Hum Sab Umeed Se Hain” in which first

time mimicry of all the politicians and the government officials was done and shown on

media. Another Important thing about the channel was the concept of giving news after every

hour to keep people updated and aware of everything happening in the country and outside it.

Its test transmission started on 14th August 2002 on the PAS 10 digital satellite. Regular

transmission started on 1st October 2002.The National association of Broadcasters (USA).

World’s largest association of broadcasters honored the GEO with the “Award for Quality”

declaring it an international standard television channel. Geo is the fastest growing TV

Channel in Pakistan with ratings exceeding all satellite delivered TV channels in the market.

Geo has the widest distribution on cable systems in Pakistan with 100% carriage within 90

days of launch.Geo is known for its unique entertainment, hot talk shows, truth revealing

news and informative programs. There were many famous programs which Geo TV gave

including Aalim Online, Nadia Khan Show. Later in 2005, for the further expansion it

separated its News channel and started Geo News channel which started providing more

news to the viewers. Dramas and other programs were then being shown on separate channel

that was Geo Entertainment. Now Geo is currently having 4 channels. Two more channels,

other than already discussed are Aag TV and Geo Super. So, Geo is now operating news,

music, serials and sports channels separately Geo is basically operated by very famous Jang

Group playing its important role in public awareness from last few decades, especially

through print media in Pakistan. People prefer Geo instead of CNN, BBC or any other

channel because of its transmission in national language Urdu. Secondly, Geo broadcasts

sizzling live talk shows in current issues so that people get the awareness about both the

negative and positive aspects of the matter but also the veiled realities actually behind the

exposed truth publically. The particular satellite which enables us to watch Geo News Live

streaming on our TV sets, desktops, laptops, mobiles and many other advance electronic

devices is named as PAS-10. Our TV sets and other devices capture these electronic signals

and convert them into video and audio signal so that we can watch and here them. It is just

because of this satellite that we can watch the live transmission of Geo TV at the same time

in different areas of the world at the same time with the same intensity. Minute by minute

Live Geo News in different areas of a city and different cities of a country and different

countries in a continent and different continents in a world this is the blessing of the PAS-10

satellite system. According to longitude and latitude measurements of the world this satellite

is situated 68.5-Degree east and download Link Band of it is C-Band. Geo News as well as


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other programs are digitally transmitted at the frequency of about 4114 Mega Hertz with

horizontal polarity. While symbol rate of Geo News Live is 3300 Mega bytes/second having

FEC 2/3 and QPSK(auto) modulation.

ABSTRACT In the quality management of Geo, there are few important things like their bench marking.

Setting of benchmark is done at the Head Office which is located in Karachi. Benchmarking

is done for the ratings and number of breaking news and other programs and serials etc. For

the improvement in their quality, they always keep eye on their competitors. They always

look what they are doing and Geo tries to do better than them. Geo considers Dunya News

and Express News as its biggest competitors and they try to keep their level higher than them.

Their employee selection is like they always look for the people who are creative and have


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ability to generate new ideas as they require new and innovative things and continuously

improves themselves to be better than the others. As employee morale is must, so they keep

arranging different offside activities like dinners or sports activities to keep their employees’

morale up. One of the reasons for the success of Geo is the advantage they have of being the

pioneer in the field and the most important reason is that they consider each of their programs

as a product and try to do better development of their products. Also their large amount of

investments makes the availability of the budget with them.

KEY WORDS:

Benchmarking

First Private News Channel

First Sports Channel

Creative Employees

Availability of Budget

Entertainment Activities

Expenditure on Employees Training

Treatment of Service as a Product

Key Performance Indicators

PTV National Antenna Channel

Advertisements

Sensationalism

Exaggeration of News

STUDY QUESTIONS: Our task was to judge the total quality management of Geo and for that there were few

questions which we needed to explore and for that purpose we asked few questions which

are;

What do you do for the continuous improvement?

What are your performance measuring criteria?

On which basis you recruit your employees?

Are your employees empowered?

What kind of benching is used in Geo?


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You are not giving any product rather service, so what is the difference in the quality

management of a product and a service?

How can the concept of product design be implemented in your services?

What do you think what is better in your organisation then any other channel?

Do you have any obstacle in achieving quality?

Any example for overcoming the problems?

Quality Control Cost methods?

What are the major sources of getting customer feedback?

Who are your internal and external customers?

How do you keep focus on them?

Do you face customer retention problems?

What are the ways you use for employee morale?

What are their methods of employee training?

Do you have any particular objective which you need to achieve say yearly or

quarterly basis?

How do you evaluate that you are getting what you need?

PROJECT DESIGN AND ITS IMPLEMENTATION: For knowing about the quality management of Geo, we needed to collect data which

could help us to make our project and for that we visited the Geo office blue area and met

with Mr. Muhammad Saalar Janjua, Manager HR. It was so kind of him that he gave


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answers to our questions in detail. Questions which we asked have already been discussed

We had to face few difficulties in getting the data. Firstly, we had to contact them time and

again because we were not able to get time from them for the meeting. Another problem is

that any organization cannot provide its internal information. In case of Geo we had the same

inconvenience as Geo is a channel related to media and their information is confidential and

things related to quality management were also not available on internet and that is why we

were not able to get answers of few questions. Not getting the answers was also due to the

reason that the things were complicated and in detail which could not be told to us. Another

cause was our less familiarity with the subject “Total Quality Management” due to which we

could make more questions. If we had studied more before making this project, we would

have done better perhaps. Also we were not given any outline by the teacher. Though it was

given to us later but then, we could not visit the organization again because our calls were not

picked inspite of trying it again and again and due to that we could meet the manager again

and we had to stay with our own made questions.

So overall we were able to get a satisfactory result and a good response from the manager and

we got the answers in a friendly and supportive manner but we were not able to obtain full


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information due to the mentioned reasons which affected our project and it could have been

better in the absence of these factors.

MISSION STATEMENT: GEO informs and entertains while celebrating cultures and prompting dialogue in the spirit

of "live and let live".

VISION STATEMENT: “GEO will be the voice of freedom from the Asian subcontinent. It will highlight the issues of

concern and the cultural richness of its people through information, discussion and

entertainment. GEO will propagate transparency of responsibility that will ensure its position

as the most credible and meaningful source of information, through quality programming


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based on issues. GEO will provide entertainment audiences can relate to, thereby creating

viewer loyalty and response. GEO will forge an alliance amongst its three stakeholders -

viewers, advertisers and shareholders to maximize viewer ownership. GEO will invest in

human resources as it recognizes it to be the foundation upon which the GEO future will be

built. It is this very foundation that will allow GEO to attain and sustain a leadership

position, thus fulfilling the promise associated with its creation.”

ANNUAL OBJECTIVES: We were not told any specific objective. Their main objectives are just to retain in the market

with the same position they currently possess and provide their viewers the things which they

want to watch and increase the number of viewers and try shift the viewers of other channels

to their own by providing them better stuff than the competitors.

TOTAL QUALITY MANAGEMNT OF GEO

BENCHMARKING: We begin the Total quality management of the Geo with the “BENCHMARKING”.

Benchmarking is mainly done in terms of “Ratings”, “Number of Breaking News”,

Number of Talk Shows, Number of dramas etc. It is decided that what the number of

breaking news is, which the channel should give. Mostly it is done by comparing with the

other channels and to be better than them, it is tried to be the most breaking news

providing channel.

Then the number of other programs is also set, for-example, if Talat Hussain is doing a

kind of Talk show on another channel which Geo is not doing, Geo will try to make such

kind of program or rather make a better one than the other.

In our view they should not only follow others, but also try to try to be the first one to

make new kind of programs like they are the pioneer of other things.


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QUALITY COUNCIL: Quality Council of Geo consists of President, CEO, and the senior managers of different departments like Hr, Finance and also they have made different councils for their four different channels and those councils are led by the main quality council. Their main functions are;

Proper allocation of resources.

Improvement of quality management internally so that viewers are satisfied with

performance.

The employees selected are capable to work according to the requirement.

Proper training of the employees.

The programs shown are of the kind which viewers prefer to watch and which will not

harm the reputation of the channel.

These are the main departments in which Geo’s Functional activities are distributed and

senior managers from these departments are the part of the quality council,

1. Geo News Department

2. Entertainment Department


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3. Product Development Department

4. Human Resource Department

5. Geo Operations Department

6. Finance Department

7. Technical Department

8. Marketing Department

9. Sales Department

10. Creative Department

11. Music Programming Department

12. Research Department

13. Events Department

14. Sports Programming Department

15. Scripting Department

16. Game Shows Department

17. Communication Department

18. IT Department

19. Fashion Design Department

20. Children’s Division.

Quality Council is an important part of the TQM of any organization. Therefore we

recommend that it should perform its duties with diligence to maintain and retain the quality.

CONTINUOUS IMPROVEMENT: For the continuous improvement firstly, the comparison with the other channels is done.

Geo consider Dunya News and Express News as its biggest competitors. And their

programs have been followed as well for bringing the improvement in Geo itself. Then

obviously competent employees are the major source of their continuous success and

stability in the market. Employees are properly trained and given value and continuously

motivated and their morale is always kept high. Also, proper performance measure tools

are applied for this purpose.


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Above all, Geo never compromises on its quality and for that quality control costs are

used. Proper budget is allocated for the preparation and implementation of a quality plan

and before that, proper inspection and evaluation is done so that the quality cannot be

disturbed.

RECRUITMENT OF EMPLOYEES: Recruitment of the employees is an important task and is done carefully. Those

employees are selected who are creative. As, an employee is the one who illuminate their

screen, design their sets and promote their programs so, he should be the one who is

creative in nature and is able to generate new ideas. Continuous improvement and

changing is necessary to get the attraction of the audience otherwise people will get bored

of the old things and prefer other substitutes and at this time of healthy competition it is

really difficult to sustain yourself in the market and employees are one of the most


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important source of the customer retention. During the employees’ selection, their

qualities as required by their particular task to do, are seen. Fore-example, if an anchor is

selected, it is to be seen that if he can talk and he has the complete knowledge about that

job and he can present in front of the people.

Our group’s review about the recruitment is that it should be done with great care as the

employees are one of the most important of the organization. They should be competent

and well trained to do their jobs and Geo gives great importance to this part of the TQM

and they should keep doing it to have the quality employees like they currently have.

EMPLOYEE TRAINING: Employees are properly trained according to their particular jobs and proper allocation of

budget is done for the training. Fore-example, a reporter is trained for interacting with the

people and questioning them. They need to inform and give the news of any incident as

early as possible and give full detail of that incident.


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When did it happen?

Where did it happen?

Why did it happen?

Then, a cameraman is trained to have an eye on the events and he should capture

everything which is necessary. So, the employees are trained and prepared professionally to

perform their jobs effectively and the quality of the work does not affect.

In our group’s review, the training of the employees is significant as it is necessary to make

the employees capable of doing their work. If employees are not told and taught about their

job, there will definitely be poor performance from them and ultimately the channel will have

to suffer.

EMPLOYEE MORALE: Employee morale is to be always kept high to take work from them which is beneficial

for the organization and its performance. For that, employees are given value and respect

and motivated continuously. Yearly basis entertainment activities apart from the work are

done like Annual Dinner in which all the higher and lower ranked employees are called

and sit together which definitely assists in the motivation of the employees. Also Sports

activities like Cricket Match are held. Also, on the basis of their performances, they are

given rewards and incentives which make them motivated and they have strong intentions

to work for the betterment of the organization. Annual evaluation of the employee’s

performance is discussed with the employee. There is an Idea Box in the reception room

available to employees and even visitors. All ideas are implemented and the generator of

the idea is rewarded with a prize.


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PERFORMANCE MEASURING CRITERIA: For the measurement of the performances of the employees, proper evaluation is done.

There are Key performance indicators for the achievement of their objectives. Fore-

example, to be the quickest to inform people about the latest news, their key performance

indicators are number of their reporters in a particular area and


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measurement of the efficiency of the reporters i.e. how quick and accurate reports they

can provided by their reporters. At the beginning of the year, it is told to every employee

what the organization requires from them and then, at the end of the year their

performance is evaluated.

Our group’s review about the performance measuring criteria is that we were not given the

answer about it in detail. It should have been in more detail for the better understanding. We

just recommend them to have a clear performance measuring criteria so that the employees

can also know easily about it. This clear and certain criterion also helps in the motivation of

the employees.

CODE OF ETHICS: 1) They have a No-Smoking environment however, they have specified a zone for

smoking only.

2) Every employee has to display the GEO Identity Badge.

3) All employees should conduct the display of Discipline strictly because of too much

interaction with the other departments.

4) There is no formal dress code except for certain levels such as, the Heads of the

Departments.

5) Eatables are not allowed everywhere in the office except in the Cafe.

6) Employees must reach and leave the office in the office timings.


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In our review, they have made a positive working environment through this code of ethics

and they should keep following it so that the ethics of the organization should remain and the

quality is not disturbed.

ROLE PLAYED BY SENIOR MANAGERS: The major role of the senior managers is to maintain the quality and evaluate the goals set by

the management as to how close they are to achieving their objectives, and how much they

have achieved. If Geo has not achieved its required goals they take feedback and change their

operational plans accordingly. The Top Management is responsible for the SWOT analysis as

well to judge that where the company is standing currently, what are their strengths or

weaknesses, what are the things which they can get, what are the major threats from which

they need to be careful and what improvements can be made.

SWOT ANALYSIS:

Strengths: First advantage of Geo is that it is the pioneer in this field. Geo introduced the

concept of presenting news after every hour.

Geo started its services with a sitcom named, “Hum sab Umeed Se Hain” in which

mimicry of the government officials and the politicians was shown. This kind of

program was also shown on media first time by the Geo.

Geo is running four channels now which are,

Geo Entertainment

Geo News

AAG TV

Geo Super

.


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Geo is associated with print media as well and is operated by the Jang Group.

Geo has huge amount of investments which is another advantage of large budget

being available over other channels.

Their investment on the employees is also worthy to be admired as they have

made their employees competent of their jobs for the best possible output through

proper training and investments.

Geo introduced the first Pakistani sports channel, Geo Super


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Weaknesses: Geo news spreads sensationalism and to gain attention of the viewers, they present

simple news as breaking news.

Exaggeration of news is common.

To be the first one to inform, they sometimes tell the cause of an incident without

confirmation.

News related to the Bollywood is shown in the headlines, which should not be given

much importance.

Opportunities: They can use their extensive network to give people in rural areas knowledge about

the politics

By this political culture can be improved.

Other social values should be promoted.

Threats: Their major threats are their competitors and biggest competitors considered

are Dunya News and Express News.

PTV is the main competitor of GEO with regards to viewer ship because of the

reason that geo is a satellite channel and is accessible in specific areas whereas

PTV is a national antenna channel, which is easily accessible.

They have to follow the rules made by the government and cannot act outside

the rules.


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PRODUCT DESIGN: Geo is providing services instead of products and they consider their services as a product.

That is why they design their services as products and always try to bring innovations in them

and new ideas are brought for the changing in their programs and improvements strategies

like, Refinement, Renovation and Reinvention, which are used for the improvement of

products, are used in their services. Fore-example they continuously improve their

appearance like title’s design etc. Geo introduced the first sports channel of Pakistan. So, they

are always found engaged in making the design of their services better.

OBSTACLES IN ACHIEVING QUALITY: Geo has not faced much difficulty in achieving quality, only once in 2007, due to the

recession, they faced inconvenience in achieving quality as they had to cut down their budget.

They reduced their technical cost to overcome those external factors and with the passage of

time they were able to bring themselves back on track. But they never allowed themselves to

be worse than their competitors and they just tried to sustain in the market. Another obstacle

is that sometimes government bans the transmission of Geo for its own interest.

As ups and downs are the part of every organization’s business, So we recommend them to

just try to be patient in these kind of situations and try to sustain their position and credibility.

INTERNAL AND EXTERNAL CUSTOMERS AND THEIR FEEDBACK: Internal customers include all of their employees which are the part of their operations in all

four channels and their offices who are already discussed that they are highly motivated and


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competent and their feedback is takes as well for the betterment of the organization which

ultimately assists in the better output.

Their external customers are definitely the viewers but the biggest external customers which

had a great influence on their performance as well, are the advertising companies. Their

attachment to the channel speaks the success of the channel and is an enough feedback which

is received by them regularly.

An example for the judgment of the feedback can be like an advertising company is offering

175,000 rupees to any of the competitors for an advertisement and 200,000 rupees to Geo, it

will be an evidence of its success. It can also depend on the number of advertising companies

want to engage with them instead the amount of money being paid by one.

Also, a survey had been arranged recently which was named as “IPSOS Pakistan” in which

feedback from people was taken but If it will not be wrong if it is said that the biggest source

of their feedback are the advertising companies.


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PROBLEMS IN CUSTOMER RETENTION: Due to the continuous focus on the customers internally as well as externally, they never had

to face any major problem yet. One of the reasons is its comparative advantages over the

other channels like its being pioneer and continuous improvement and that is why it has never

been seen any decline in its popularity rather it has helped them in gaining more trust and

better goodwill.

We think that they really have no problem of customer retention due to the above mentioned

reasons. Although people talk about geo that they create sensationalism, but still it is the

channel which is followed by most of the viewers.

USE OF JURAN’S TRILOGY: We were not given any explanation about the use of Juran’s Trilogy. It is used in different

situations and for different purposes and cannot be explained briefly. But we can explain its


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use in Geo with the help of the things already mentioned in the report. Th3333ree main parts

of the Juran’s Trilogy are;

1. Planning

2. Controlling

3. Improvement

Planning: Planning is done by the senior managers which has been mentioned in the Roles of senior

managers. They need to set the goals and objectives and convey them to the employees and

make strategies to achieve these goals. Fore-example it is the part of their planning to decide

and allocate the budget and utilize the available resources.

Controlling: About controlling, Manager whom we met, did not tell anything so, we assume that control

over expenses and controlling their weaknesses are the part of this term.

Improvement: Improvement strategies have been discussed in the Product Design part in which it is told that

their services are considered as the products and for their improvement, strategies like

renovation, Reinvention etc are used.

So, this trilogy is not used specifically for every purpose and is used differently in different

situations. But by keeping in view the above things, we can say that they are using it pretty

well for the retention of the quality which consequently assists in the satisfaction of the

viewers.


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RECOMMENDATIONS: Geo should minimize spreading sensationalism and exaggeration of the simple news.

They need to stop this because this creates anxiety for the viewers. So, to stop creating

this feeling of anxiety, they should avoid such sudden breaking news. Also, it has been

seen that few programs are repeated again and again. This repetition of the programs

should not be done. As they have an extensive network so, they should this network to

educate people especially living in the rural areas about the politics. So that they get

awareness about the political factors and also other social values should be promoted.

This awareness can be provided by making more programs to show on television or by

different campaigns by going to the rural areas. Overall, the channel has been working

very well and is always one of the quickest and earliest to give latest news and it has to

take advantage of its fame among the people by increasing its network and also by taking

part in more social activities.

CONCLUSION: Geo is one of the leading channels in Pakistan, which was the first one to introduce

the concept of news after every hour. After geo, many channels have come and are

competing in this field but many factors like well trained employees, large amount of

investments etc have kept Geo very strong for all. Dunya News and Express News are

the toughest competitors of Geo. Geo has a very wide network which is spread around

numerous countries of the world and most important thing is that Geo has not allowed

to get its quality worse and it is always same. Moreover their investment on

employees and their admirable employee selection criteria, all have contributed well

to maintain its quality


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Mr. Salaar Janjua

Hr Manager.

Geo Office, Blue Area

Islamabad.

Cell # 03008550672

03458598966 http://www.kaashtv.com/

http://www.geo.tv/teamgeo/mainpages.htm

Muhammad Hassaan Tirmizi

Taimoor Khalid Butt

Muhammad Irfan Ali

Mohsin Ali

SUBJECT

TQM

CLASS

MBA-3B


MBA 3B Page 35

Contents ACKNOWLEDGEMENT ............................................................................................................... 36

DISTRIBUTION OF WORK .......................................................................................................... 36

TEACHER’S REMARKS .................................................................. Error! Bookmark not defined.

ABSTRACT .................................................................................................................................... 37

INTRODUCTION ........................................................................................................................... 38

FERTILIZER INDUSTRY .............................................................................................................. 38

FAUJI FOUNDATION ................................................................................................................... 39

FAUJI FERTILIZER COMPANY LIMITED .................................................................................. 40

VISION ........................................................................................................................................... 42

MISSION................................................................................................................................................11

PROJECT DESIGN ........................................................................................................................ 43

IMPLEMENTATION................................................................................................................................12

THE REPORT................................................................................................................................. 44

INTEGRATED MANAGEMENT SYSTEM ................................................................................... 44

QUALITY COUNCIL................................................................................................................................14

CODE OF ETHICS AND STANDARD OF CONDUCT..................................................................................14

PROCESS IMPROVEMENT.....................................................................................................................15

CUSTOMERS…………………………………………………………………………………………………………………………………….16

EMPLOYEES...........................................................................................................................................17

SUPPLIERS.............................................................................................................................................18

BENCHMARKING...................................................................................................................................19

SWOT ANALYSIS....................................................................................................................................21

Strengths ......................................................................................................................................... 52

Weaknesses..........................................................................................................................................21

Opportunities.......................................................................................................................................21

Threats ............................................................................................................................................ 53


MBA 3B Page 36

OBSTACLES .................................................................................................................................. 53

LONG TERM PLAN.................................................................................................................................22

RECOMMANDATIONS...........................................................................................................................23

CONCLUSION .................................................................................. Error! Bookmark not defined.

REFERENCES..........................................................................................................................................25

APPENDIX..............................................................................................................................................26

ACKNOWLEDGEMENT We would like to thank Almighty ALLAH for giving us the strength and intellect to complete

this project. This was the most difficult project we had come across so far but it was due to

the mercy and blessings of the Almighty ALLAH that we persevered and completed our

project.

We would also like to thank our respected teacher, Colonel Manzoor Iqbal Awan, for helping

us with the completion of this project. You continuously guided us towards the proper

completion of the project. The mistakes you pointed out from our drafts helped us in refining

our project and making it better in terms of quality as well as in terms of aesthetics.

Finally we would like to thank Mr Muhammad Hasan Qureshi, Manager HR at FFC Head

Office, Rawalpindi and Mr Tariq Javed, Manager Manufacturing and Operations at the FFC

Production plant in Rahimyar Khan. You provided us with the vital information that was

required to complete this project. Your help in that regard is much appreciated and

acknowledged.

DISTRIBUTION OF WORK

Muhammad Hassaan Tirmizi Had to develop the project design, ensure its implementation and write the report.

Taimoor Khalid Butt

Had to write the introduction and help with the project design


MBA 3B Page 37

Muhammad Irfan Ali Had to help with the abstract and design the layout of the report.

Mohsin Ali

Had to write the conclusion and give the recommendation

ABSTRACT This is a project where we had to examine Fauji Fertilizer against the backdrop of Total

Quality Management. TQM is the art of managing the whole to achieve excellence. Therefore

we had to see how FFC was managing its entire range of operations while maintaining it very

high standards and product quality. We found out that FFC is a quality conscious company

and it takes the quality of its products very seriously. It has a great relationship with its

customers and the basis of that relationship is the customers’ trust that FFC will provide them

with quality products. Also FFC tends to be very careful in selecting suppliers and undertakes


MBA 3B Page 38

thorough investigation before selecting a supplier.FFC is continuously looking to improve its

process and as a result increasing production capacity. This increased production would lead

to an expanded market share for FFC. The company is a dynamic organization which is using

every tool at its disposal to be flexible with the changing environment.

Keywords:

Quality

Fauji Fertilizer Company Limited

Benchmarking

Customers

Employees

Suppliers

Integrated management system

Quality council

Process improvement

Engro Fertilizer

Code of Ethics

Standard of Conduct

Fertilizer Industry

INTRODUCTION

FERTILIZER INDUSTRY As Pakistan’s economy is agriculture based therefore the fertilizer sector assumes a central

role in the development of the country. A good quality fertilizer increases yield therefore

increasing production of crops and earning foreign exchange for Pakistan through exports.

Not only does the quantity of production increase but the quality also increases. This

increases the exports of our country which in turn helps us correct our adverse balance of

trade with other countries. Therefore it is necessary to have a vibrant fertilizer industry in

Pakistan. The good news is that future outlook for the fertilizer industry looks bright because

of supportive government policies and favorable climatic conditions. The government almost

always comprises of feudal lords and they always try to implement encouraging agricultural

policies because their aim is also to maximize yield. Thus the fertilizer sector gets a boost in


MBA 3B Page 39

terms of subsidized gas rates and lesser h

ours

of load shedding.

FAUJI FOUNDATION Fauji Foundation is one of the largest conglomerates in Pakistan. Its interests include energy,

cement, and power generation, food, fertilizer, education, security and employment services.

It was setup as a charity in 1954 and its main purpose was the welfare of ex-army personnel

and their dependents. It is run by retired army officers. Its headquarters is in Rawalpindi

Cantonment. Some of the organizations owned by this group are as follows:

1. Fauji Fertilizer Company

2. Fauji Cereals

3. Foundation Gas

4. Foundation University

5. Fauji Cement Company

6. Foundation Security

7. Fauji Kabirwala Power Company

8. Fauji Sugar Mills


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9. Fauji Security Services

10. Fauji Fertilizer Bin Qasim

FAUJI FERTILIZER COMPANY LIMITED HISTORY

Fauji Fertilizer Company was incorporated in 1978 as a joint venture between Fuji

Foundation and HaldorTopsoe A/S of Denmark. Its head office is located on Mall Road in

Rawalpindi Cantonment. FFC has two plants. One is located at Goth Machhi in Rahimyar

Khan while the other one is situated at Mirpur Mathelo in Ghotki. The initial share capital of

the company was Rs. 813.9 million. The present share capital of the company stands above

Rs. 8.48 billion. Additionally, FFC has more than Rs. 8.3 billion as long term investments

which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL.FFC commenced

commercial production of urea in 1982.FFC participated as major shareholders in a new

DAP/Urea manufacturing complex with participation of major international/national

institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan

Fertilizer Company Limited) commenced commercial production with effect from January

01, 2000. The facility is designed with an annual capacity of 551,000 metric tons of urea and

445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP.


MBA 3B Page 41

CURRENT

Today, Fauji Fertilizer is the biggest fertilizer company in Pakistan with a 60% share in urea

manufacturing and urea marketing in Pakistan. It is a name synonymous with quality and

excellence. It has production plants located in Rahimyar Khan in Punjab and Ghotki in Sindh.

Its head office is located in Rawalpindi Cantonment. Its production plants have a combined

production capacity of almost 2 million Met/year of urea and 1.15 million Met/year of

ammonia. It shares are trading at Rs. 110.75 per share in the Karachi Stock Exchange as of

April, 2013. Fauji fertilizer has also been the recipient of many awards. For its exceptional

safety standards it has won 15 awards of honor from the National Safety Council, USA since

1982. It has also won the award for best corporate report from Institute of Chartered

Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountants of

Pakistan (ICMAP) for 2010 and 2011.


MBA 3B Page 42

VISION “In a nation of increasing population, we believe there is substantial opportunity of growth

for FFC in the years to come.

FFC's vision is to play a leading role in the industrial and agricultural advancement of the

country pursuing new growth opportunities offering the convenience of multiple products,

brands and channels within and beyond the territorial limits of Pakistan, to the benefit of our

customers and our shareholders, elevating our image as a socially responsible and ethical

company that is watched and emulated as a model of success. ‘’


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MISSION “FFC is a market-focused, process-centered organization delivering successful performance

through a strong focus on quality.

Our mission is to stand above the competition and provide our customers with premium

quality fertilizer products in a safe, reliable, efficient and environmentally sound manner,

deliver exceptional services and unparalleled customer support, produce predictable

earnings for our shareholders, and provide a dynamic and challenging environment for our

employees.’’

PROJECT DESIGN

To collect data from the assigned company i.e. Fauji Fertilizer we used a questionnaire. This

was done because we felt that a questionnaire would provide us with the information that we

required to complete our project. Also a questionnaire is a practical and time effective

method of collecting information. In this questionnaire we formulated questions that would

provide us with a comprehensive body of knowledge that would help us in obtaining a

detailed picture of the quality management in effect at Fauji Fertilizer Company Limited. It

was decided that each group member would prepare separate sets of questions and before

going for the interview the best ones would be chosen for the final questionnaire.

IMPLEMENTATION

We wanted to ask the questions face to face with someone from the quality department but

we were told that FFC has its quality control department at its plant site in Rahimyar Khan.

This was really disappointing for us because we knew that we would not be able to conduct a


MBA 3B Page 44

face to face interview. We had to change our plan. We contacted a friend of ours who works

in the Human Resource department at FFC head office in Rawalpindi. Through him we sent

the questionnaire to the Manager, Manufacturing and Operations in Rahimyar Khan. We had

never intended to have the questionnaire filled; rather we had prepared it for our own

reference so that during the interview if we forgot any question, we would consult it. But due

to circumstances beyond our control we had to have had it filled. We were also told that the

Manager, Manufacturing and Operations at the plant site would not attend our phone calls

because he was a very busy man. Anyway we altered the questions and had the questionnaire

filled. It did not provide us a complete picture but did give us enough information to

complete our report. For some of the information like the Integrated Management System we

were told to consult the official website of Fauji Fertilizer Company Limited and use the data

available there.

THE REPORT

The objective of our report was to find out about the quality management systems employed

by Fauji Fertilizer (FFCL). Based in Rawalpindi, FFCL is the largest chemical fertilizer

producer of Pakistan. This report examines the management systems that are in place to

maintain the quality standards of FFCL.

INTEGRATED MANAGEMENT SYSTEM

FFCL uses the Integrated Management System for the purpose of quality management.

Integrated Management Systems International Standards like ISO 9001, ISO 14001 and

OHSAS 18001 have the common purpose of assisting organizations for risk management,

improved product quality, customer satisfaction and continual improvement. These standards

provide a foundation for organizations to achieve business excellence.

Quality in all areas has been a hallmark of the FFCL right from the beginning and their

product "SONA UREA" has already established its prestigious place in the market.

One major landmark for Fauji Fertilizer Company over the years is Management Systems

Certifications for International Standards (Quality, Occupational Health & Safety and

Environment) for its plant sites at Goth Machhi and Mirpur Mathelo.


MBA 3B Page 45

To bring Management Systems (Q, OH&S and E) in line with the internationally recognized

Standards, FFCL achieved International Standards certifications for ISO 9001:2008, ISO

14001:2004 and OHSAS 18001:2007.

Quality Management System certification at FFCL plant in Goth Machhi was first achieved

in November 1997. This was an honor for FFCL because it became the 1st Fertilizer Plant in

Pakistan to achieve this certification.

Good operating practices established by FFCL are consolidated in its Integrated Management

Systems (Q, OH&S and E) and aligned with the requirements of Quality, Occupational

Health & Safety and Environmental Management System International Standards. The

implementation of these standards is the most important corporate strategy of FFCL.

QUALITY COUNCIL

This is also where the Quality Council comes in. Its purpose is to watch the overall quality of

the organization keep a close eye on every aspect of the organization through a properly

formulated quality policy. It consists of the senior managers and the directors of the

organization. They ensure that the company follows the guidelines and does not deviate from

its quality principles.


MBA 3B Page 46

OUR VIEWS: In our view every company has to have an effective quality council so as to

have its quality policy implemented. Therefore FFC has constituted a quality council

consisting of the senior most members of the organization’s hierarchy. This means that the

top management will ensure the enforcement of the quality policy which will be beneficial

for the organization.

CODE OF ETHICS AND STANDARDS OF CONDUCT

It is the policy of FFC to follow the highest business ethics and standards of conduct. All the

employees are obligated to act responsibly i.e. to be honest, trustworthy, conscientious and

dedicated to the highest standards of ethical business practice. The company’s reputation

depends on the conduct of its employees therefore each employee must endeavor to act

according to the highest ethical standards and abide by the rules and regulations.FFC enforces

its Code of Business Ethics and Standards of Conduct at all levels fairly and without any

prejudice or bias. All the employees and directors of the organization are morally as well as

legally bound to follow these rules. The following are the core values that are followed by

FFC:

1. Honesty

2. Excellence

3. Compassion

4. Consistency

5. Fairness

OUR VIEWS: In our view the company has developed an exemplary Code of Ethics. FFC

has been following this code of ethics as well as these standards of conduct which is proved

by the various quality achievement awards that they have won over the years. This is

testament to good management skills and an excellent grasp of Total Quality Management.

PROCESS IMPROVEMENT

FFC seeks uncompromising integrity through each individual’s effort towards quality product

for their customers.. FFC also strives to achieve consistency in its products i.e. not only

achieving high quality but also maintaining it. This is a difficult task but FFC tries its best to

consistently achieve the high standard that it has set for itself. Another component of their


MBA 3B Page 47

quality policy is fairness to employees, stakeholders, partners, suppliers and customers

through adherence to merit and the applicable laws. As an organization FFC is always

improving so as to remain up to date with the ever changing external and internal

environment. Training programs and performance evaluation systems are part of this

continuous improvement process. Training is given to employees regarding the use of

machines, handling of customer complaints and dealing with suppliers. This is done so as to

ensure the highest standards of quality and to maintain the prestige of FFC.

OUR VIEWS: Continuous Process Improvement is the cornerstone of Total Quality

Management. It means that the organization is constantly trying to improve and increase its

productivity while keeping its employees happy. The customers are given the best possible

products and better production facilities and techniques are developed. FFC also follows

continuous process improvement and is always looking to improve its production process by

bringing innovation in the various techniques

employed in the organization.


MBA 3B Page 48

CUSTOMERS The business success of FFC is dependent on trusting relationships with their customers.

Excellent products and services to their customers further strengthen this relationship. Most

of FFC’s customers are concerned with the price of the product. This may be due to the

perception that any product of FFC will certainly be high quality. Therefore customers are

not bothered about it. But still the company tries to maintain that high quality so as not to

break the trust of its customers. Although FFC is the market leader in the fertilizer sector, it

constantly tries to increase its market share. To do that it increases the quantity produced,

lowers the price of its products, maintains very high quality, uses a proper supply chain

system and brings into use an effective distribution network. In order to expand its market

share, FFC tries to increase sales. To do that it uses its marketing department which

conceives advertising campaigns to increase awareness about FFC and its products. FFC also

maintains highest standards of quality so as to earn a place in the customers’ hearts. A high

quality product will always be preferred by the customers because it gives increased yield and

that is the ultimate aim of every farmer.

OUR VIEWS: FFC takes care of its customers. It always tries to develop the best possible

products for its customers. It has a very effective distribution system that makes sure its

products reach the market rapidly. But one thing that the FFC management did not share was

how they collected feedback from their customers. In our view FFC should go to rural areas

and take personal feedback from farmers. This would further enhance their relationship with

their customers.


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EMPLOYEES FFC trains its managers to handle customer complaints and also to motivate employees. This

is done via business courses, marketing modules and leadership seminars. Employee morale

is also improved by various other methods. FFC encourages innovation from its workers and

wants them to think outside the box. That is why they are rewarded for their creativity. This

recognition and reward system positively affects employee performance and motivates the

thus increasing the organization’s productivity and contributing to an overall happy

environment. The rewards and recognition are given for the performance of an employee

during a quarter i.e. 3 months. Another method that improves employee morale and keeps

them happy is taking their input in the decision making process. Every major decision that the

organization makes is taken after consultation with its employees. This gives the employees a

sense of ownership as well as responsibility which makes them feel like a pivotal part of the

organization. This not only improves morale, it also boosts productivity leading the

organization to post higher revenues and therefore higher profits. Most importantly, FFC

believes in open communication among its employees and between the top management and

the lower level employees. The employees know everything that goes on in the company.

This prevents grapevine and gossip from developing which in turn creates a stable

environment in the organization.


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OUR VIEWS: TQM gives us eight basic concepts to achieve a motivated workforce and FFC

employs at least five of those concepts i.e. establish a positive attitude, share the goals,

develop interesting work, communicate effectively and celebrate success. With the

implementation of these concepts, FFC has achieved a motivated workforce which works for

the betterment of the company without being constantly prompted by the supervisors.

SUPPLIERS FFC believes in communicating openly with the company’s suppliers. The company makes

sure that it conveys its requirements to its suppliers so that the material that they get is in

accordance with their needs and is of the quality that they desire. This also helps the suppliers

because they know what to deliver to the company. This saves them time and money as well

as the embarrassment of having their goods rejected. Regarding selection and certification of

suppliers, FFC has a strict procedure. This process has four stages. In the first stage the

potential supplier’s products are carefully examined. It is made sure that they are in

accordance with the quality standards of FFC. In the second stage the supplier’s service

quality is gauged. Only the suppliers with the best service quality are chosen. In the third

stage the past record of the suppliers is verified. Suppliers with the experience of delivering

goods to large organizations are preferred. In the final stage the price is decided. The supplier

which has passed the previous three stages now has to have a reasonable price to be selected.

All these factors are investigated thoroughly and the company makes sure that the supplier

will be able to meet the high quality that people expect of FFC.

OUR VIEWS: We think that FFC follows the correct procedure when selecting its suppliers

because in their four stage process they look at all aspects of the supplier and its products.

This means that suppliers are selected on merit and everyone is given an equal opportunity to

become FFC’s supplier. This also ensures that only the best suppliers are associated with FFC

and the highest quality standards are met.


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BENCHMARKING Being the market leader, FFC does not follow any other company’s benchmarks. On the

contrary, almost all other fertilizer companies benchmark FFC. That is because not only is

FFC the market leader but it also has some excellent policies pertaining to quality

management. This motivates other companies to follow FFC in a bid to be like FFC.

Although not benchmarking other companies, FFC does look at its biggest competitor i.e.

Engro Fertilizer. This is done because Engro has increased its market share rapidly and FFC

does not want it to take over its position as the market leader. FFC looks at the policies of

Engro and ensures that its policies are always better than Engro’s policies. If Engro

introduces a low price fertilizer, FFC will also launch a low price fertilizer. Similarly Engro

always tries to get the better of FFC due to its position as the market leader in the fertilizer

sector.

OUR VIEWS: Benchmarking is an important facet of quality management. On the face of it

FFC looks like it is overconfident and is relying on its position as market leader to achieve

success. Its lack of benchmarking shows signs of corporate arrogance. FFC is advised to use

benchmarking. If it is the market leader it should benchmark itself against other international

companies. Fertilizer sector is strong in agrarian economies in such as India. Therefore FFC

is advised to benchmark itself against a fertilizer company which is bigger than itself.


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SWOT ANALYSIS

Strengths

1. The market leader in the fertilizer sector.

2. Enjoys a very good reputation among the general public as well as the corporate

sector.

3. High quality products.

4. Friendly atmosphere in the organization which leads to motivated employees and

higher productivity.

Weaknesses

1. Armed forces management. The ex-army officers lack business acumen and could be

found wanting if Engro launches a hostile marketing offensive.


MBA 3B Page 53

2. Lack of marketing. FFC products are rarely seen on satellite TV channels.

Opportunities

1. Further increase their production capacity.

2. Introduce even better quality products.

3. Expand into neighboring countries like Afghanistan and Iran.

4. In the absence of little competition, FFC can further increase its market share.

Threats 1. Engro Fertilizer is the biggest threat to Fauji Fertilizer due to its rapidly increasing

market share and sound financial backing.

2. Adverse agricultural policies by the government could also affect FFC.

OBSTACLES According to FFC, they do not face any obstacles implementing their quality policies and that

their policies are always implemented. Minor problems do occur but everything is always

under control and does not cause any obstacle in the achievement of their targets, both in

terms of productivity as well as quality.

OUR VIEWS: We think that every organization faces obstacles in the achievement of

quality and that FFC was trying to portray an aura of perfection. This would either be because

they were being secretive or the really were very confident in their organizational abilities.

LONG TERM PLAN FFC formulates its strategic plan in the light of the company philosophy. The vision and

mission of FFC are the guiding principles when the company decides its annual objectives

and its long term corporate strategy. FFC continuously strives to improve its products and in

the process increase its market share further. Rather than sitting back and relaxing, FFC is

looking to further consolidate its position as the biggest fertilizer company in Pakistan.


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OUR VIEWS: The long term plan of FFC is very encouraging and speaks volumes about the

company’s confidence in its bright future. The company wants to consolidate its position as

the market leader and wants to expand its market share in the country’s fertilizer sector.

RECOMMENDATIONS We recommend that FFC should continue to follow these quality principles. These principles

have served it well. They have made FFC the company that it is today. It is recommended

that FFC should use its position as a market leader in the fertilizer sector and expand its

operations in other countries as well. Neighboring countries like Afghanistan and Iran are

ideal for this type of expansion. FFC is also advised to maintain its high quality because in a

situation like this it is very easy for a company to get complacent and start neglecting the

quality of its products. The company is also advised to start working hard because Engro is

gaining market share quickly and if FFC does not do something about it then very soon FFC

will have to relinquish its status as the market leader.

CONCLUSION Fauji Fertilizer Company Limited is a chemical fertilizer company. It is the largest fertilizer

company in Pakistan. We looked at the quality practices of Fauji Fertilizer Company Limited.

FFC employs the best quality practices at its production plants as well as in the entire

organization. Its production plants are located in Rahimyar Khan and Ghotki while its head

office is in Rawalpindi. Overall FFC is in a strong position both financially as well as in

terms of quality practices. They just need to continue these practices so that they not only

retain their position as the market leaders but build upon it and further expand their market

share.

REFERENCES

Data Sources:


MBA 3B Page 55

1. Introduction to FFC….http://www.ffc.com.pk/

2. Integrated Management Systems….http://www.ffc.com.pk/ims.aspx

3. Vision and Mission…..http://www.ffc.com.pk/vision-statement.aspx

Image Sources:

1. Integrated Management system……http://www.afoes.ae/aha/wp-

content/uploads/2010/12/IMS.jpg

2. SWOT

Analysis......http://st.depositphotos.com/1743352/1271/i/950/depositphotos_12712164-

SWOT-Analysis-Diagram.jpg

3. Engro Fertilizer…..http://engro.pakissan.com/images/top2.jpg

4. APPENDIX


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The Questionnaire

Q1. What is the code of ethics for your organization?

Q2. Do you have a quality council?

Q3. What is the composition of the Quality Council? What are its functions?

Q4. What is your company’s philosophy?

Q5. What do you think is the main concern of your customers, price of the product or quality

of service?

Q6. What is the best way for your company to increase its market share?

Q7. How do you train your frontline managers to handle complaints from customers?

Q8. What are the ways you use to boost the morale of your employees?

Q9. Do recognition and reward affect the motivation of employees?

Q10. What are the various techniques you use to initiate and sustain process improvement?

Q11. How do you select your suppliers?

Q12. How do you formulate your strategic plan and annual objectives?

Q13. How do you use the service department to encourage future sales?

Q14. Do you utilize 6-sigma strategies in your organization?

Q15. How do you use benchmarking in your organization?


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Submitted to:

Prof Col (Retd) Manzoor Iqbal Awan

Group members Enrolment number

Saad Saleem 01-120121-067

Aftab Nawaz 01-120121-004

Bahria University Islamabad

Department Of Management Sciences

Final Project Report


MBA 3B Page 58

Muhammad Ali Farooqui 01-120121-045

Arooj Tariq 01-120121-009

Table of Content

ACKNOWLEDGMENT: ........................................................................................................................ 8

METHODOLOGY: ................................................................................................................................. 9

ABSTRACTS ....................................................................................................................................... 10

EXECUTIVE SUMMARY ................................................................................................................... 11

INTRODUCTION: ................................................................................................................................ 13

MISSION STATEMENT: ..................................................................................................................... 13

VISION STATEMENT: ........................................................................................................................ 13

PRODUCT AND SERVICES OF MCB: ............................................................................................... 14

VALUES OF MCB BANK ................................................................................................................... 16

CODE OF ETHICS: .............................................................................................................................. 17

LEADERSHIP OF MCB: ...................................................................................................................... 19

STRUCTURE/HIERARCHY OF MCB ................................................................................................. 20

DEVELOPMENT MEASURES: ........................................................................................................... 20

HUMAN RESOURCE MANAGEMENT GROUP HIERARCHY: ....................................................... 22

ROLE PLAY BY SENIOR MANAGERS: ............................................................................................ 21

PROCESS OF CHANGE IN MCB: ....................................................................................................... 23

PERFORMANCE MEASUREMENT: .................................................................................................. 27

OBSTACLES OF TQM: ....................................................................................................................... 28

JURAN TRIOLOGY: ............................................................................................................................ 30

CUSTOMERS OF MCB: ...................................................................................................................... 31

TYPES OF CUSTOMERS: ................................................................................................................... 31

SUPPLIERS OF MCB: ......................................................................................................................... 32

QUALITY MANAGEMENT: ............................................................................................................... 32

USE OF FISHBONE DIAGRAM: ......................................................................................................... 33

CONCLUSION: .................................................................................................................................... 35


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RECOMMENDATIONS: ...................................................................................................................... 36

REFERENCES:..................................................................................................................................... 37

QUESTIONNAIRE: .............................................................................................................................. 38

ACKNOWLEDGMENT

Any accomplishment requires the effort of many people and there are no exceptions. The report being submitted today is a result of collective effort.

First and foremost, we are thankful to our professor who gave us the opportunity to work on this project and learn the practical implementation of quality control in successful organizations. Our professor who not only taught us the subject of Total Quality Management but also proved us that by continues effort and proper research one can invent new methods not only in quality but in every field of life. His efforts and remarkable achievements are known all over the globe “Prof Col (Retd) Manzoor Iqbal Awan.


MBA 3B Page 60

Secondly, we thank Mr. Imran Zubair Khan, quality Manager Quality Control who helped us in the project. He took his precious time and briefed us about the processes and quality control system. His cooperation regarding question answering and visit to the site was admirable.

Lastly, we would like to thank our friends who helped us out in different stages of difficulty.

Thank you.

Methodology:

We have a total quality management project on “Muslim Commercial Bank” to complete the project report we need enough information about quality and improvement process, which the bank is doing for the quality.

At first, we all members decide to make a direct interview with the quality department head and one day we went the head office of Muslim Commercial Bank situated at blue area and meet quality manager name Mr. Zubair Imran and tell about us, than ask to give us information about the quality but he refuse to share the information with us and said that first you should send me the questions I will see them and if I can answer than I will call u to come and I will give you information, than we send a questionnaire and after five days he call us and give us the answers of the questions and we get information which was enough to complete our project.


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Abstract In the quality management of Muslim Commercial Bank, there are few important things . For

the improvement in their quality, they always keep eye on their competitors. They always

look what they are doing and MCB tries to do better than them. Their employee selection is

like they always look for the people who are creative and have ability to generate new ideas

as they require new and innovative things and continuously improves themselves to be better

than the competitors. So they keep arranging different training session to improve the quality.

MCB is operating service business so the quality is important for MCB to provide a high

quality of service to satisfy the customer. One of the reasons for the success of MCB is the

advantage they have of being the pioneer in the field and the most important reason is that

they consider each of their programs as a product and try to do better development of their

products. Also their large amount of investments makes the availability of the budget with

them.


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Key words:

Services

Management

Quality

Commercial

Leadership

Improvement

Planning

Performance

Customers

Suppliers

Motivation

Executive Summary

In this project, we have almost discussed each part of the MCB’s quality management

with its customers. We discussed that how MCB made it easier for their customer to use their

ATM machines and also the cards which are easily specified with the customers perceived

decisions whether they will have the transactions directly or indirectly and these ATM

machines which are almost available in every corner in the main cities and as well as the rural

areas of Pakistan. Then there is the travelers check and the gold card, which is used by the

loyal customers who has the membership of MCB. We also discussed the banks features of

RTC, which they use. It includes online banking, mobile banking and then there is the call

centre which the customers of MCB can be facilitated with. This report tells that how MCB

bank uses its values to improve the quality of its management and these are innovation,

integrity, excellence and customer centricity these values are noted and judged by the

customer focus on the MCB qualities. Then our group discussed and reached the MCB’s

hierarchy or structure, which tells us how the hierarchy of MCB is created, first there group

head who leads the other first level groups, then there are the three business head north, south

and centre that are typically known as the mangers of the MCB bank. After that there is the

financial services departments who holds all the financial transactions of the MCB banking

system and last but not the least there is the branch manager who tells the first level

employees what to do. Then there is the HRM group, which has which takes responsibilities


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of the MCB customer care in doing so there is a HRM hierarchy, which is the same as the

normal hierarchy, but has different perspectives. Then there is a process of cultural change in

the MCB, which allows the internal customers to experience the changes in technologies

there, is also a training program for the internal customers, which has been already discussed,

the motivation of employees is there to get the output better of the bank. Benefits for

employees are available when they have entered the organization. Compensation is given to

the employees of MCB, and then there is the appraisal system where an employee or the

internal customer know there performance. So these are the things where MCB focuses a lot

due to gaining the maximum output out of these features and this could gain the banks

ranking in the minds of its competitors. There are many different kinds of customer accounts,

which MCB offers to its customers. These accounts are individual accounts, joint account,

partnership account, company account all these accounts have different features in it. In an

individual account there is an individual person who is authorized to operate this account for

the joint account there are more than one person who are able to open this account and for the

partnership account which is opened until unless all the documents should be available from

all the partners who will be responsible for opening this account. For the company account

the memorandum of association and the list of directors are to be shown while opening this

account. In addition, in the final of this report we discussed how MCB improved their quality

by using the fishbone and Pareto chart. Therefore, this is the summary of what we have done

in this project and an overall view of the MCB’s quality management, which has been

properly discussed in this summary as well.

Introduction:

Muslim Commercial Bank is one of the leading banks of Pakistan with a deposit

base of about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947,

MCB soon earned the reputation of a solid and conservative financial institution managed by

expatriate executives. In 1974, MCB was nationalized along with all other private sector

banks. This led to deterioration in the quality of the Bank’s loan portfolio and service quality,

Then MCB became a private bank in 1991. During the last fifteen years, the Bank has

concentrated on growth through improving service quality, investment in technology and

people, utilizing its extensive branch network, developing a large and stable deposit base and

managing its non-performing loans via improved risk management processes.


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Vision Statement:

The vision of Muslim Commercial Bank is to be the leading financial services

provider, partnering with our customers for a more prosperous and secure future.

Mission Statement:

Mission of MCB is a team of committed professionals, providing innovative and

efficient financial solutions to create and nurture long-term relationships with our customers.

In doing so, we ensure that our shareholders can invest in us with confidence.

Monogram and slogan:

MCB has also changed its monogram and slogan after privatization. So the current

monogram and slogan truly reflected and expense its mission vision and philosophy.

Its current slogan is good banking getting even better. While its monogram defects 3 things

Green color of the monogram shows character of economy that is the growing ad flourishing

day by day.

Are of monogram shows Islamic style and approach.

Free shape of monogram is the symbol for safety and shelter.

Product and services of Muslim Commercial Bank:

MCB ATM- Card:

ATM card, which is providing 24-hour service MCB ATM-Card is accepted at over

5,600 ATMs nationwide. The Card enables you to access fast cash, inquire account balance,

transfer funds and pay utility and mobile bills from any of over 675 ATM in the country. The

withdrawal limit and the fee structure of the ATM card is as Unser,

Limits & Fee Structures Gold Plus Gold Silver

Daily Transaction Limits: ATM Withdrawal 50,000 25,000 10,000 Shopping 150,000 100,000 25,000 MCB Mobile 100,000 100,000 100,000

Promotional Schemes: Cash Back on 1st Retail Purchase (1) PKR 250 PKR 250 No MCB Mobile Free 300 300 1300 cc Car Lucky Draw (2) Yes Yes No

Annual/Issuance fee (3) 1,000 750 500 Replacement Charges (3) 1,000 750 500 Total Cost of 1st Year (4) 750 500 500


MBA 3B Page 65

MCB Rupee Traveler Cheque:

MCB introduced rupee traveler’s cheque (RTC) in 1993 and since then has enjoyed

the largest market share with sales reaching Rs 100 billon on 1999. Today RTC are preferred

over cash and are card in all kinds of business and trade transactions, retail purchases as well

as traveling.

Features of RTC:

1.It is easily available at all the branch of the bank.

2.In case of lost or stolen, you can get full amount back.

3.Validity of this is ten year from the day of purchase.

4.Available in denomination of 10,000.

MCB Mobile banking:

MCB provides banking at your fingertips means that you can this service on your

mobile at any time to get information regarding balance and mini statement. The bank

management said that These products will be designed to not only increase MCB’s potential

customer reach but will also serve to broaden access to financial services by reaching out to

the under-banked in Pakistan.MCB Mobile customers will not only be able to view their

account balances and request mini-statements using mobile phones, but also to make host of

payments in a quick, easy and secure way. The payments menu is offering payments of utility

bills, top ups for all pre paid mobile connections, payment of post paid mobile bills, transfer


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of funds from their MCB accounts to other MCB accounts, payment of donations to PM relief

fund and lots more.

MCB online banking:

MCB has largest network of over 269 online branches in the country and providing

with 24*7 real time online transaction facilities. MCB mobile banking is world recognized

and a very

effective service, which the bank is providing through this service a customer can does a

business or can make a payment up to billion through his mobile.

MCB call centre:

MCB call centre is providing service to the customer by which the can get

information about ATMs, bank timing, and the customer will give feedback about the bank.

MCB call centre is offering following services of inquires that which the customer will easily

get information complaints and will give feedback about the bank performance. The services

are

ATM location

Account opening procedure

MCB bank charges

Account balance inquiry

Last five transaction detail

Mobile banking activation

All credit card related request

Fund transfer request

Complaint registration

Credit card address change request

Values of MCB Bank:

Muslim commercial bank has a long term vision to innovate and transform in such a

way that the banking service become easier and satisfying for the bank customer. The bank

not only focus on profit but also their focus is on customer satisfaction and the relationship

with them, they believe that a good relationship with their customer will automatically leads

them to profit. So for that MCB gives high places to its values and by uses of these values

they make decisions and handle day to day affairs. These values help the bank management


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to take ethical and correct decision and to establish friendly relationship with the customers.

The values are,

Integrity

Innovation

Excellence

Customer Centricity

Respect

Integrity:

We are the trust worthy of public fund and serve our community with integrity. We

believe in being the best at always doing the right thing. We deliver on our responsibility and

commitment to our customer as well as our colleagues.

Innovation:

We encourage and reward people who challenge the status quo and think beyond the

boundaries of the conventional. Our team work together for the smooth and efficient

implementation of ideas and initiatives. In today world to maintain the business and to satisfy

the current and to gain potential customer innovation is a main key, so MCB is more

concentrated on innovation and there are expert professionals who are doing this.

Excellence:

We take personal responsibility for our role as leaders in pursuit of excellence. We

are the performance driven, result oriented organization where merit is the only criterion for

reward.

Customer Centricity:

Our customers are at the heart of everything we do. We thrive on the challenge of

understanding their needs and aspiration, both realized and unrealized. We make every effort

to exceed customer expectation through superior services and solution.

Respect:

We respect our customer values, beliefs, culture and history. We value the equality

of gender and diversity of experience and education that our employees bring with them. We

create an environment where each individual is enabling to succeed.

Code of Ethics:

Ethics is an entire body of principles and measures, which investigates the values,

norms and rules that govern the individual and social relations of the humans, from a moral

viewpoint which is essentially based on the parameters of right-and-wrong, good-and-bad,


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etc. Professional ethics regulates the relations between the individual members of a

profession and the relations of these members with the rest of the society.

The fact that banks, as organizations which fulfill investment and saving functions by playing an integrating and intermediar

operations in both professional and corporate domains. Muslim commercial banks as a

financial institution have following code of ethics.

1. Ensuring accurate record:

Accurate record means that the organization have to work according to the customer

perception and will be able to provide the belonging material to the customer as instructed by

the customer than the customer will become satisfied. Internal accounting information and

customer records must be accurate and maintained with reliability and integrity, Transactions

must be reflected in an accurate and timely manner.

2. Observing Applicable Laws: Every organization has some rules and regulation and the employees should have to

work under that rules and Muslim Commercial bank as a financial institutions work in a highly regulated environment. The Board of Directors/Trustees ensures that bank management and relevant employees are aware of all applicable laws and regulations.

3. Clear Penalties for a Breach of the Ethics Policy: The Code of Ethics contain specific and appropriate consequences that would serve

unacceptable business practices, and promote accountability among employees and others to the customer.

4. Safeguarding Confidential Information:


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An organization should have to protect and let in secret the confidential information of their customers through which the trust of the customer on the organization will increase. So Muslim commercial bank as financial institutions have administrative, technical and physical safeguards to protect sensitive customer information. All affected persons must comply with the established procedures to safeguard the confidential information of others.

Leadership of Muslim commercial bank:

Muslim commercial Bank is one of the leading names in the Banking history of

Pakistan and is still rated as one of the top banks in the country in terms of financial growth

and profit. MCB has a wide network of 1200 branches across the country where

approximately 10,000 people work. It is indeed a great challenge for the bank to manage,

train and motivate it has to achieve its short term and long-term objectives.

Muslim Commercial Bank (MCB) has a rigorous and comprehensive Leadership

Development program in the place for the development of its workforce especially for the

key positions that play an integral role in the operational or strategic avenue of the


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organization. Apart from many other traits of Leadership, some of the important traits that

MCB focuses to inculcate in its Leadership at key positions are as follows:

Cultural Acquaintance

Thorough information about policies

Motivation

Role Modeling

Integrity

Competency

Role Play as Leader

Winning spirit

Facing the competition and challenges

Decision Making

Team Management

Delegation of Power/Authority

Respect and Dignity

Time Management

To understand as to how MCB plans to develop its leadership as well as inculcate

the above-mentioned traits in its leadership, we must at first understand the hierarchy or the

structure of the Bank that will give us an in-depth knowledge of its operational effectiveness.

Structure/Hierarchy of MCB (Muslim commercial Bank)


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Development Measures:

MCB has a comprehensive system in place for the development of its Leadership

and the process that it mainly uses to do so is through Succession Planning.

Succession Planning

The bank divides its management into three broad groups; Senior Management,

Middle Management and Line Management. The Group Heads and the Business Heads are

the part of senior management whereas Regional Heads and the Branch Managers are the part

of Middle Management and Line Management respectively. MCB considers these three

levels as highly crucial for succession planning and most of the time selects and trains leaders

from these three levels.

The process starts from the line Management i.e. Branch Manager Level. The Bank

has its own highly developed HRMG (Human Resource Management Group). The training

and development department of this group continuously evaluates the performance of the

Branch Managers all over the country based on competencies demonstrated by them in terms

of Team Management, Role Modeling etc. This is achieved by selecting a sample of best

performers from the Branch Managers by testing their abilities through a rigorous test module

known as Omega

Testing e.g. to determine their strengths. This test is conducted in consultation with an

external consultant. The training and development department as well as the external

consultant test the candidate in a separate manner and then the combined score is calculated.

The Omega test is unannounced and can be taken on any day in a year those results in

determining the level of expertise of the candidates in a normal every day environment. The

branch managers that outperform the rest are recommended for promotion to the level of

Regional Head especially in those areas in which they had the highest level of knowledge and

skills. Then, they are given training to further enhance their expertise and to facilitate/prepare

them for their promotion. Job Rotation process is also used to assess the competencies. Many

constraints are faced in this process By Training and Development Department in form Unity

Break Down i.e. one out of the five employees spreads negative politics about the effort and

breaks the unity of the group being trained. Similarly, references from higher management to

hire someone derail the merit process.


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Human Resource Management Group (HRMG) Hierarchy:

The Human Resource Management Group of MCB is totally responsible for the

overall functions of the HR for the entire network of branches throughout the country. The

group performs all the necessary functions of from a strategic point of view and aspires to use

its human potential in the best possible way that can lead the organization towards a

competitive advantage.

Role play by senior managers:

Senior management is generally a team of individuals at the highest level of

organizational management who have the day-to-day responsibilities of managing a

corporation. They have higher levels of responsibility, such as a board of directors and those

who own the company shares, but they focus on managing the senior management instead of

the day-to-day activities of the business. They are sometimes referred to, within corporations,

as top management, upper management, or simply seniors.

The first thing which senior management must realize from the outset is that Total

quality management is a long-term business strategy. The senior management should start

TQM implementation because they are the primary internal change agent for quality

improvement. In this situation, the senior management has two major roles; they are shaping

organizational values and establishing a managerial infrastructure to actually bring about

change. They have to prepare themselves with knowledge about the criteria of quality and put

in their mind the TQM agenda. Total quality management is the management process used to

make continuous improvement to all


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Functions in organizations, the ideal continuous improvement process are the ones that begin

with and have genuine senior management involvement. On the other hand, TQM

implementation needs commitment to quality and continuously improving from all levels of

staff.

Process of change in Muslim Commercial bank :

Muslim commercial bank after being a private limited focus on the improvement of

the services and product of the organization that Muslim commercial bank is offering to its

customer and has bought a change in the following areas.

1: Technological Change.

2: Training program.

3: Motivation of employees.

4: Benefits for employees.

5: Compensation system.

6: Appraisal system.

7: Structural change.

Technological change:

All the MCB branches are 100% computerized and more than 19 cities in Pakistan

are connected with online service. Two well-known advancement in technology of MCB are

the introduction of MCB mobile banking and MCB ATM 24-hours cash card.MCB mobile


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banking is providing the convenience of accessing account balance information and mini

statement whenever want. MCB having 80 ATMs machine in 12 cities having a large ATM

network in Pakistan. ATM service of MCB is successful as more than 150000 Muslim

commercial bank cardholders are enjoying 24-hours cash facilities. MCB has now gone a step

further and extended its ATM network to other banks via its recently introduced switch,

MNET. MCB is already being a leader in the Rupee Traveler Cheque Business.

Training program:

MCB were using modern technology for that purpose the organization must have

skillful employees so that they can use the technology more effectively for that MCB offers

Training programs are for their existing and new employees. These programs are according to

realistic, theoretical and practical approaches and expanding needs of the business, MCB

have staff colleges at Lahore, Karachi and Islamabad. Training session of MCB is organized

quarterly.

Training to first line Employees:

First line employees are also known as the individual contributor in an organization,

and these first line employees are mostly neglected in training session. These employees in

some situation are in trouble to complete the work that effect the organization quality so the

organization should train their employees as MCB is doing to make their first line employees

effective. Employee training should have following characteristics,

Task:


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Resolve customer complaints or answer customers' questions regarding policies and

procedures.

Provide employees with guidance in handling difficult or complex problems or in resolving escalated complaints or disputes.

Discuss job performance problems with employees to identify causes and issues and to work on resolving problems.

Train or instruct employees in job duties or company policies or arrange for training to be provided.

Review records or reports pertaining to activities such as production, payroll, or shipping to verify details, monitor work activities, or evaluate performance.

Interpret and communicate work procedures and company policies to staff.

Skills:

Through training the following skills and abilities should have to create in individual

so can the individual play a role in the improvement of quality in organization. As for mostly

said that first line employees are the backbone of any organization so to organize training

session for these employees is important in organization.

Active Listening

Speaking

Critical Thinking

Judgment and Decision Making

Negotiation

Reading Comprehension

Abilities:

Oral Comprehension

Written Comprehension

Speech Recognition

Written Expression

Speech Clarity

Motivation of Employees:

MCB has decided to offer wide range of benefits for its employees to engage them.

So that they feel themselves an important part of organization. The purpose of top

management was to give them such environment where they feel that top management is so

caring for their employees. To satisfy their employee’s management should be aware of their

needs, the benefits they are offering one covering all needs of any employees.


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House building loan:

Employees of MCB who has no reasonable accommodation, MCB offers a very

suitable house-building loan. Contain share of the credit is free certain portion is on low mark

up base. Any employee can get 80 times loan of its basic salary.

Education allowance:

MCB is also offering an educational loan for the children of its employees, this

educational loan is for that employee who can’t afford the expenditure of his/her children.

Computer loan facility:

Muslim commercial bank wants to train their employees according to the

requirements of the current age. For their financial support in this area, MCB is offering

computer loan facility, So that they employees can buy their own computers and make

themselves an expert in it.

Compensation system:

Muslim commercial bank after privatization, the salary scale is revised one

reviewed upward. In 1997, they have given 35% increments of their basic salary. Since its

privatization, employees have increments in salary twice.

Appraisal system:

Muslim commercial bank has a very regular and transparent appraisal system. The

basic requirement for the consideration to be promoted is three years period. A performance

is used for appraisal which has different ratings, According to these ratings employees are

given different ranks and starting from A to E, rank E is the worst, Employees performance

position is communicated him to writing so that he can improved. Benefit of transparent

appraisal is that employee can himself work out his performance on criteria.

Award- Reward Program:

Muslim Commercial bank has award-reward program by which the team and

individual employee get financial benefits and certificate. The programs divide as team or

employee of the month and year according to the performance of the employee and team.

Structural change:

In 1999 Muslim commercial bank changed it’s structured by dividing its business

into three major segments on the base of credit portfolio. These are the three major segments.

Corporate

Commercial

Consumer


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Corporate segments include the credit of above 20 million and below comes under

consumer segments include the credit of within the range of 2 million to 20 million. Credit of

2 million and below comes under consumer segments. For one year these segments worked.

Then in the June 2000, MCB was restructured again and merged consumer segment into

commercial segment. As a result, now there are three segments, corporate commercials and

priority banking.

Staffing:

After privatization, the main goal for the top was to achieve international standard

of banking with repute of preferred bank for customer, technological oriented, prestigious

interior. Customer oriented and advanced technological oriented bank.

Recruitment:

In order to introduce and inject desired changes in bank most of the recruitments

were made of external sources. For executives and higher level posts, 90% of recruitments

were made from leadings and foreign banks and the other lower levels posts were filled with

professionally Qualified candidates i.e. MBA/M.Com’s Computer Programming individuals

etc from well

Recognized National and international universities. So now, these new injections made it

possible to get access to new approach and new trends in banking.

Selection:

According to previous culture of Muslim commercial bank, there was lack of

transparency in the process of selection. In addition, the references have great role in

selection. But according to new culture, there is a very transparent and objective procedure

for selection i.e. advertisement is given in newspaper, having proper specifications for the

employees needed, after test was conducted and ultimately employees are selected on open

merit basis.

Performance Measurement:


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After the financial crisis in 2008 bank are taking steps for their performance

measurement in light of change in economy and market condition and new management

needs. Muslim Commercial Bank measure the performance annually, for the measurement

the bank has a department named as Annual Performance Appraisal which measures the

performance of the bank, in the start of a year the management plan and set a standard, at the

end of the year (APA) measures the performance the information for measurement is obtain

by their customer by using tools.

Suggestion box

Toll free number

Social media/ face book

Comment card

Direct meeting with customer

Annual performance Appraisal a department of the bank use the information obtains from

these tools and compares the satisfaction level quality service, which the bank is providing

with the standard they have set.

Obstacles to TQM:

Total quality management is a management philosophy that seeks to integrate all

organizational functions to focus on meeting customer needs and organizational objectives.

Any organization to maintain its quality and for the satisfaction of its customer should

continually improve the quality of the product and services. The organization must

understand the perception of customer about the quality. An obstacle is an object, a thing, an

action or a situation that causes an obstruction. Obstacles can be physical, social, economic,

technological or political, There are a number of barriers that face the process of TQM

implementation, and the barriers/obstacles faces by Muslim commercial bank are,

Competitive market:


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One of the effects of a competitive market is to lower quality standards to a minimally

acceptable level, this obstacles to the quality occurs by the misunderstanding of the quality

definition, Muslim commercial bank is doing a service business and in this the customers

only focus on the service quality and there are many competitors of MCB if the bank can’t

provide well service to their customer than the customer will choose the competitor.

Poor planning:

The absence of a sound strategy has often contributed to ineffective quality

improvement. If management took reasonable time to plan projects thoroughly and invest in

partnering to develop an effective project team, a lot could be achieved in terms of product

performance as these investments in prevention- oriented management can significantly

improve the quality of the goods or services offered by an organization. MCB is focusing to

plan effectively and to implement the planning and taking work according to the plan.

Lack of management commitment:

A quality implementation program will succeed only if top management is fully

committed beyond public announcements. Success requires devotion and highly visible and

articulate champions. As an example of MCB management personals who are committed to

improve the quality of the service and to bring innovation in banking sector.

Lack of training:

There is evidence that lack of understanding and proper training exists at all levels of

any organization, and that it is a large contributor to worker resistance. Muslim commercial

bank after privatization brings change in some sector in which one was training to their

employees, which are directly related to quality and the training become effective for MCB.

Inadequate resources for total quality management:

Since most companies do not involve quality in their strategic plan, little attention is

paid to TQM in terms of human and financial resources. Much of the attention is drawn to

increasing profit margins of the organization with little regard as to whether their offers/

supply to customers is of expected quality. Muslim commercial bank is providing full

capacity resources to improve the service quality of the bank and which will give more return

as the customer become satisfied.

Lack of leadership for quality:

Excess layers of management quite often lead to duplication of duty and

responsibility. This has made the lower employees of an organization to leave the quality


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implementation to be a management’s job. In this Muslim commercial bank wants to provide

skill full leader in all aspect to quality department to improve their quality level.

Lack of customer focus:

Most strategic plans of organizations are not customer driven. They tend to

concentrate much on profit-oriented objectives within a given period. Little market research

is done to ascertain the product or service performance in the market relative to its quality.

Such surveys are regarded by most organizations as costly and thus little concern is shown to

quality improvement for consumer satisfaction. Customers are the assets of any organization

and if the organization develop a product or service without focusing on customer than the

company profit will automatically decrease.

Juran Trilogy:

Juran trilogy consists of three managerial processes: planning, control, and

improvement. With similar analogy for better quality results, quality trilogy consists of the

same managerial processes aimed at improving quality of products and services. They are

Quality Planning, Quality Control, and Quality Improvement.MCB is using this theory for

continuous improvement of their quality the steps are,

Planning:

In planning, the organization establish objective by which it will improve the quality this is

done through before focusing on the following steps,

Determine who your customers are.

Discover your customers’ needs.


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Develop a product whose features are aligning with the customers’ needs.

Develop a process whose features are capable of producing these products along with

accompanying features.

Controlling:

Quality Control the operational techniques and activities that are used to fulfill the

requirements for quality. It is the inspection or appraisal of products and services to ensure

that the stated requirements are fulfilled.

It comprised of following steps:

Evaluate the actual operating performance.

Compare actual performance to operating goals.

Take actions in response to differences.

Quality Improvement:

Quality improvement aims at attaining unprecedented levels of performance, which

are significantly better than the past level. For improvement there is following steps

Establish the infrastructure needed to facilitate the continuous quality improvement.

Identifies the project improvement.

For each project, establish the team that is clearly in charge with the responsibility of

bringing a

Successful resolution to the project.

Customers of MCB:

The most important asset for any organization is its customers. Within the context of

quality, MCB encompasses two different groups, external customers and internal customers

External customer:

An external customer is the person or organization who receives and pays for a

product, a service, or information. For example, the external customer of MCB is the one who

buys bank Credit Card, Drive etc.

Internal customer:

An internal customer is an employee or department within an organization who receives an

output in the form of a product, service, or information from another employee or department

in that same organization.

Target customer or potential customer:

Muslim Commercial bank prefer all individual or group who want to be its customer

but the focus or the potential customer would be a person or a group having high deposit.


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Types Of Customers Accounts :

Individual:

Only one person can operate this account, we can call it a personnel or individual account.

Followings are required to open it.

Signature of customer on back of AOF.

N.I.C photocopy attached

Mention next of kin (nominee)

Partnership Account:

For partnership account along with the application form signature card, Other documents are

also needed such as.

Partnership deed certified copy

NIC photocopies of all partners.

Partnership mandate for account signed by all the partners.

Company Account:

For company accounts following documents are required.

Copy of certificate of incorporation.

Memorandum of Association.

List of Director’s.

Copy of board resolution.

Certificate of Commencement of Business.

Copies of NIC of Director’s.

Company’s Balance Sheet.

Customer Satisfaction:

Every organization has some long-term goal and without customer satisfaction, which

is impossible, Muslim Commercial bank claim that its customer are 90 % to 100% satisfied.

Supplier of Muslim Commercial Bank:

Supplier have direct impact of the quality of any organization but in banking sector

there is no such need of raw material than supplier can’t have an impact on the quality of

MCB but the bank has an authorized vendor which is controlled by General Service Division

(GSD) .

Criteria to be MCB vendor /supplier:


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The business enterprise must currently be incorporated, or registered as a company

(corporation, limited, partnership) and be able to demonstrate that it has been and is offering

goods/services under the business name.

The Vendor should have operated with a positive operating income for the respective periods

noted on the form and must provide Annual Reports and/or audited financial statements or

certified tax filings for that period which will be subject to financial review.

The Vendor must provide evidence of insurance coverage for the following categories:

Comprehensive General Liability and Workers’ Compensation.

The Vendor must legally be able to conduct business in the for which they are registering.

Quality Management:

Quality Management strives to implement the Strategy proactively and is a

continuous journey towards improving, streamlining and monitoring the existing functions

and roles and simultaneously initiating new processes and tasks to achieve superior and

consistent quality.

What is Quality for MCB?

1: Quality is meeting reasonable customer requirements and delighting them in the process.

2: Quality should be aimed at the needs of customer, present and future.

3: Quality is conformance to requirements.

Use of Fishbone Diagram:

MCB uses a fishbone diagram when they:

Need to study a problem/issue to determine the root cause.

Need to identify areas for data collection.

Basic aim is to focus on the voice of the customer.


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Use of Graph:

Muslim Commercial Bank use Pareto chart to show:

When Evaluating Customer Complaints.

When trying to focus on the most significant problem or cause

When relating cause and effect, by comparing a Pareto chart classified by causes with one

classified by effects

When evaluating improvement, by comparing before and after data

The figure below shows how many customer complaints were received in each of five

categories.


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Conclusion:

What we conclude in this report is that the MCB’s vision and mission in the long term

perspective which would help the customers of this bank and how they try to capture the

customers mind by having those features which would improve the quality management of

MCB. They would be looking forward for having their input from such external customers

who would like to be entertained by the internal customers of MCB. They also would like to

focus on their research and development and the innovation in technologies, which would

rather help them in the future so that nothing would be much comparable, then having the

most outstanding technology in each of their departments. If the input from the external

customers is positive then the internal customers can have more ideas to generate and the

output will gain MCB more profit. So these are some objectives that are to be focused onto

and this thing can improve the total quality management of this bank.

Recommendation:

Muslim commercial bank is a financial institution should provide security to their

customer confidential information and provide clear and accurate documentation. The bank

should focus to improve the quality of the service and should bring innovation. The bank

should have to increase its number of ATM service so that can increase its customer. Should

involve in social work and should gain the trust of the customer. All the policy of the bank

should be clear to the customer because if customer is unaware by any policy it may become

the cause to lost the customer, the employee of the bank should to be friendly with the

customer. The bank should solve the problems of their customer quickly and should provide

helpline service. The procedure of the bank service should have to be simple and the

organization should advertise their services in TV channel in newspaper so the customer may

become aware. The bank has to display all its new services in its website.


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References: MR IMRAN ZUBAIR KHAN

SERVICE QUALITY MANAGER

MCB BLUE AREA ISLAMABAD

051-2271726

http://www.bidabad.com/doc/pls-business-cycles-en.pdf

http://www.google.com.pk/

http://www.wisegeek.com/what-are-banking-ethics.htm

http://siteresources.worldbank.org/EXTCORPPROCUREMENT/Publications/20212788/VendorEligi

bility.pdf

http://totalqualitymanagement101.blogspot.com/2012/05/continuous-process-improvement-and.html

http://smartinvestorsreports.blogspot.com/2012/03/barriers-to-total-quality-management.html

http://www.mcb.com.pk/

http://www.mcb.com.pk/contact_us/

http://en.wikipedia.org/wiki/MCB_Bank_Limited

http://www.zeepedia.com/read.php?deming_cycle_and_quality_trilogy_jurans_three_basic_steps_to_

progress_total_quality_management_tqm&b=59&c=15

http://answers.yahoo.com/question/index?qid=20070920061937AAOVGdu

http://tqmnotes.blogspot.com/


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Questionnaires:

Q1: Do you have quality department?

Q2: What are you doing to improve your quality?

Q3: do you think your customers are satisfied with your current service quality?

Q4: Do you have a training session for your employees about quality?

Q5: What feedback tool you are using to collect from your employees?

Q6: Are you giving any incentives to your employees?

Q7: Is your employees are free to take decision in some situation? If yes do you encourage them?

Q8: Do you have any supplier? If yes what kind of supplier you are using single or multiple?

Q9: Who are your customer and who will be your future customer?

Q10: which service you are offering you think is different from others?

Q11: How you motivate your employees?

Q12: Do you collect feedback from your employees and by which tool?

Q13: you are using six sigma for your quality improvement or not?

Q14: which graph you using to show your analysis?

Q 15 Do you have any performance measures or not?


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Marriot International’s Project

Name Enrolment #

Muhammad Saad Mazhar (Group Leader) 01-120121-057

Hira Sheikh 01-120121-029

Usman Ijaz Malik 01-120121-0

Program: MBA (Spring 2013) – 3 B

Date: April 08, 2013

Email: [email protected]


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Acknowledgement

The success and final outcome of this project required a lot of guidance and assistance from many people and we are extremely fortunate to have got this all along the completion of our project work. Whatever we have done is only due to such guidance and assistance and we would not ever forget to thank them.

We respect and thank Mr. Manzoor Iqbal Awan, for giving us the opportunity to do the project work as to Marriot International providing us all support and guidance which made us complete the project on time. We are extremely grateful to him for providing such a nice support and guidance though he had busy schedule managing many other tasks.

We owe my profound gratitude to our project interviewee Mr. Sher Alam, who took keen interest in our project work and guided us all along, till the completion of our project work by providing all the necessary information for developing a good Total Quality Management.

We would not forget to remember Mr. Ali Akbar and Mr. Ahmed from Marriot International for their unlisted encouragement and more over for their timely support and guidance till the completion of our project work.

We heartily thank all the participants who participated in our survey for their guidance and suggestions during our project work.

We are thankful to and fortunate enough to get constant encouragement, support and guidance from all senior students of management sciences from Bahria University who helped us in successfully completing our project work. Also, we would like to extend our sincere regards to all the non-teaching staff of department of Management Sciences for their timely support.


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Table of Content: Summary: ------------------------------------------------------------------------------------------------------- 94

Introduction: ---------------------------------------------------------------------------------------------------- 96

Marriot International: ----------------------------------------------------------------------------------------- 97

Mission Statement: --------------------------------------------------------------------------------- 98

Vision Statement: ------------------------------------------------------------------------------------ 98

Methodology: -------------------------------------------------------------------------------------------------- 98

How we conducted the research? ------------------------------------------------------------- 99

Primary sources: ----------------------------------------------------------------------------------------------- 99

Secondary Sources: ------------------------------------------------------------------------------------------ 100

Total Quality Management of Marriot Hotels (by viewing it via Principles and Practices of TQM) ---------------------------------------------------------------------------- 101

A Committed and Involved Management: --------------------------------------------------------------- 101

Unwavering Focus on the customer: ---------------------------------------------------------------------- 103

Utilization of the entire work force: ----------------------------------------------------------------------- 105

Continuous Improvement: ---------------------------------------------------------------------------------- 107

Treating suppliers as partners: ------------------------------------------------------------------------------ 107

Establish performance measures for the processes: ----------------------------------------------------- 108

Tools and techniques in TQM: ---------------------------------------------------------------- 110


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Quality management structure of Marriot International: ----------------------------------------------- 112

Quality Policies of Marriot International: ---------------------------------------------------------------- 113

Corporate objectives/Annual Plan ------------------------------------------------------------------------- 115

Our Analysis with respect to Marriot’s Annual plans: ------------------------------------------------- 115

Quality Statement:-------------------------------------------------------------------------------------------- 115

Qualitative values of Marriot International: ------------------------------------------ 116

PUT PEOPLE FIRST ---------------------------------------------------------------------------------------- 116

PURSUE EXCELLENCE ---------------------------------------------------------------------------------- 116

EMBRACE CHANGE -------------------------------------------------------------------------------------- 116

ACT WITH INTEGRITY ----------------------------------------------------------------------------------- 117

SERVE OUR WORLD -------------------------------------------------------------------------------------- 117

Quality Improvement Program: ------------------------------------------------------------- 117

What are the possible obstacles in implementing total Quality Management in a large organization like Marriot International? ---------------------------------------------------------------------------------- 119

Role played by senior managers: -------------------------------------------------------------------------- 122

Code of Ethics followed in Marriot Intl: ------------------------------------------------------------------ 123

Outcome of Employees Training in Marriot Intl: ------------------------------------------------------- 126

What are the key elements that promote the worker’s involvement within Marriot International?128

Juran's Trilogy ------------------------------------------------------------------------------------------------ 130

Juran's Trilogy is possibly the most simple, complete, and pure representation of managing for Quality ever devised. The trilogy exemplifies the essence of Quality. It completely meets its objective in the most efficient and effective manner possible. ------------------------------------ 130


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Quality Planning ---------------------------------------------------------------------------------------------- 130

The process for designing products, services, and processes to meet new breakthrough goals. To do so management of Marriot International has to determine their external customers. -- 130

Quality Control ----------------------------------------------------------------------------------------------- 130

The process for meeting goals during operations; it is the most important of Juran trilogy to drive out quality in products. As far as Marriott is concerned, they have ascertained the subjects to be controlled and their units of measure. ----------------------------------------------- 130

Quality Improvement ---------------------------------------------------------------------------------------- 131

The process for creating breakthroughs to unprecedented levels of performance; it implies two major duties for the quality council of Marriott International: one of them is to identify the improvement projects and second is to establish the project teams with a project owner. 131

Supplier Selection Strategies and Criteria ---------------------------------------------------------------- 131

Marriot’s supplier selection criteria:----------------------------------------------------------------------- 132

Performance measurement system ------------------------------------------------------------------------- 133

Performance indicators of Marriot International: ------------------------------------------------------- 134

Conclusion and our Group’s Suggestions: --------------------------------------------------------------- 137

References: ----------------------------------------------------------------------------------------------------- 49

Appendix: ------------------------------------------------------------------------------------------------------ 140

Our Questionnaire: --------------------------------------------------------------------- 140

Some Interviewing Questions


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Abstract

We have been assigned our final project in the very second week of this semester. The topic was to delve into the Marriot International’s total quality management by conducting an interview of an executive and also to float questionnaires in order to come up with something unique at the end of the day. To rise to the challenge, we visited Marriot Islamabad in order to fill the requirements of our project. We paid a visit to Mr. Sher Alam, who is one of the key executives of Marriot international. He has been so much hospitable and willing to participate in our research. Also, he filled up the questionnaire for us and answered our wishy washy questions as to total Quality Management. However, we put the questionnaires in some meaningful form to make an inference upon them. As we know that Marriot International is so much diverse, so fortifying their quality management is not an easy task. It’s a delight to say that we have used many tools in order to augment our research. One of the basic tools that we use to interpret the results of our questionnaires was SPSS, which had been so much rewarding while making inferences as to Marriot’s Total Quality Management. Once we collected the information from our visit organization of Marriot international. We put our experience into our project by referring the framework of total Quality Management. So, we put our knowledge, experience, and instincts in our project to ensure our learning as to Total Quality Management. Furthermore, we have been intimated to add some additional concepts of Total Quality Management in order to make our research comprehensive. So, we added the concepts by making a Skype call with Mr. Adnan, who has the inside track of Marriot International; he has been around the ridges. We also collected information as to Marriot International from secondary research, by constantly viewing the


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official website of Marriot International in order to view their Quality Statements and core values for the enrichment of our research.

Keywords:

1. Continuous random indicators 2. EBITDA Margin 3. Performance measures 4. Continuous Improvement 5. Customer Focus 6. Quality Tools and Techniques 7. Quality Function Deployment 8. Statistical Process Control 9. Inspection

How tasks were being distributed?

We have distributed the task in order to give every group member the opportunity to participate in the research.

Name Tasks

make a questionnaire and then conduct the survey

M. Saad Mazhar

Monitor the group coordination and integrate the contribution of everybody in the form of report.

Conduct face to face interview with the executive of Marriot Intl.

Name Tasks

Organize the data which we will get through our survey


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Introduction:

We have been administered instructions as to our final project by the very first day of our Total Quality Management’s Class. As soon as we were communicated that Marriot Hotels would be our assigned organization for our final project and we were expected to explore its Total Quality Management; we started discovering Marriot Hotels through Internet and via many other sources.

However, our major concern was to find a person who has the insights as to Marriot’s Quality Management. To alleviate this concern, we had a group meeting in order to come up with an appropriate solution. Anyhow, we arrange our meeting with one of the executives of Marriot Hotel Islamabad. It’s a delight to say that we didn’t take this privilege off hand; we made our self-made questionnaires with respect to quality management.

Hira Sheikh

Have to do a lot of exhaustive research as to Marriot International, by viewing various blogs and published articles.

Interpret the results of our survey into very comprehensive format to make things easy for each and every group member.

Name Tasks

Usman Ijaz Malik

Have to Conduct a telephone interview to procure more information as to Marriot

Arrange our meeting with the key executive in order to ask various queries as to total quality management

Expected to Participate actively during the preparation of group project of TQM


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We floated the questionnaires prior to our meeting with the executive. We were amazed by the level of their hospitality. Each and every individual, whom we met during our visit, participates in our survey by filling our questionnaires.

Finally, we were called by the executive at his office. Since, we turned up at his office; he was constantly giving us a pleasant smile, which really helps us to feel comfortable. Not surprisingly, we showed him our questionnaire; he was so delightful while filling up our questionnaire. Also, he gave us many useful information as to quality management in practical life; in other words, that how one can implement quality control in an organization.

We were bestowed by some presents and souvenirs to make our visit memorable down the road. Nevertheless, it had been a salutary experience of visiting a seven star hotel of Pakistan. Although, we have been enlighten total quality management in theory, but in practical life, it doesn’t seem so much easy.

Our interviewee said that everybody within and outside the organization has to participate in total quality management, otherwise all goes in vain.

Marriot International: As Marriott International has grown to be a leading lodging company with more than 3,700 properties in 74 countries and territories worldwide, they remain grounded in a set of core values: put people first, pursue excellence, embrace change, act with integrity and serve our world. Their relentless focus on innovation and action fuel the way they do business. With the most powerful brand portfolio in the world, they set the bar for the hospitality industry. Yet their strength lies in more than just a business model. It's their unique and storied heritage--a way of doing business--that enriches relationships and instills a passion for who they are. Together, they are opening doors of opportunity...for their guests, owners and franchisees, and associates.


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Mission Statement:

“Create an attractive environment both for associates and guests, where employees would be motivated to do their best to provide maximal satisfaction of the visitors”

Vision Statement: Its vision statement seems a cliché, but their each and every employee pull out all stops to pursue its vision statement:

"To be the Number 1 hospitality company in the world."

.Interpretation of its Mission and Vision statement in terms of Quality:

As far as we are concerned with its mission and vision statement, we interpret their statements as they are highly quality oriented. Its mission statement unravels the importance of feasible environment for the employees, so that they provide maximal satisfaction to its internal and external customers.

Methodology: We delved into our project by taking into account two dimensions of Total Quality Management: one of them is the principles & practices of TQM and the other are the various tools with respect to TQM.


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Principles and Practices

TQM

Tools and Techniques

How we conducted the research? We conducted the research by having following principles in mind with respect to primary and secondary sources of research.

Primary sources: Our primary sources comprise of following methods of conducting a research:

1. Face to face interview 2. Telephone interview 3. Computer assisting personal interviewing (CAPI) 4. Paper-pencil-Questionnaires


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Face to face interview:

We met the key executive of Marriot International by the name of Mr. Sher Alam. Since, we turned up at his office; he was constantly giving us a pleasant smile, which really helps us to feel comfortable. Not surprisingly, we showed him our questionnaire; he was so delightful while filling up our questionnaire. Also, he gave us many useful information as to quality management in practical life; in other words, that how one can implement quality control in an organization.

We floated the questionnaires prior to our meeting with the executive. We were amazed by the level of their hospitality. Each and every individual, whom we met during our visit, participates in our survey by filling our questionnaires.

Computer Assisted Personal Interviewing (CAPI) is a form of personal interviewing, but instead of completing a questionnaire, we bring along a laptop to enter the information directly into the database.

Telephone interviews are less time consuming and less expensive and the researcher has ready access to anyone. So we called in many executives of Marriott international to make our research more comprehensive.

Secondary Sources: We have used following secondary sources to augment our research on Marriot Intl.

1. Official Website of Marriot International. 2. Blogs 3. Published Articles 4. Wikipedia 5. Google

Various related Websites


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Total Quality Management of Marriot Hotels (by viewing it via Principles and Practices of TQM)

Let’s begin to analyze the Total Quality Management of Marriot International By considering the principles and practices of TQM; we have been enlightened thus far:

A committed and involved Management Unwavering Focus on the customer Utilization of the entire work force Continuous Improvement Treating suppliers as partners. Establish performance measures for the processes.

A Committed and Involved Management: Citing our visit to Marriot International and our painstaking research on Marriot International, we infer that each and every individual in Marriot international participates for the improvement of overall quality management.

It is said by our interviewee Mr. Sher Alam that if one pats on his subordinate’s shoulder, it will give a lot of motivation to perform well down the road.

However, Marriot International has been providing Direct Compensation to their employees in order to scale up their dedication towards work and ultimately bring in quality for customers.

Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization.


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However, Marriot International has been providing following type of direct compensation to its employees:

Aforementioned Direct Compensations for employees are the best stimulus to improve quality for an organization.

How Marriot International brings in better quality through their employees?

Following are the ways Marriot rests on since the beginning:

1. We were told by the executive of Marriot International that they usually rest on organization citizenship behavior to drive better quality in their organization.

2. After the devastating event of tragic bomb blast in Marriot Islamabad, they urged to bring Marriot Islamabad back on track, which called for a lot of revolutionized system that should satisfy their customers that Marriott has been safe for lodging and dinner.


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However, they hired seasoned and dedicated management to reinvent the system of security, and that ultimately prompt customers to patronize Marriot International among the rest.

3. Marriot’s HR has been hiring competent staff for the betterment of its quality control. They have a quality council, who has been making quality decisions in order to remain competitive in the market.

4. Retention of employees is quite important today, because good employees are getting poached almost every day today. Hence, Marriot Intl. values its employees by giving them direct compensation and other intrinsic benefits.

5. Career Advancement is used as a tool by Marriot to motivate its workforce, and it ultimately brings quality in its services.

Unwavering Focus on the customer: We have perceived various tools and techniques used by Marriott international to take customers on board. During our visit, their hospitality really amazed us because they were treating us as if we have been their loyal customers for decades.


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However, Marriot Intl. has been using following ways to satisfy their customers:

They go the extra mile to show their customers that they are important to Marriot’s business so that they will return.

They offer a special incentive to retain customers in order to make them feel like they are a value to Marriot International. A rewards program or discount for regular customers can be the best personification to retain customers for Marriot International.

Settle disputes in a timely manner. 1. Customer issues do arise from time to time. How they handle such disputes will determine if

Marriot Intl. loses a customer or retain them.

2. To rise to the challenge, they always listen to what their customer has to say about the issue at hand. They make sure to hear them out before making a conclusion.

3. They see if there is some way to appease your customer in order to have them happy to return to your business.

4. They Settle disputes amicably and with a positive attitude. They let the customer know they are more than happy to make them satisfied.

More Importantly, They know their customers by name and greet them as often as they can.

Not surprisingly, customers like to feel like they are important and something as simple as knowing their name or what specific product they like can make all the difference in how often they choose to return to Marriot Intl.

They let their customers be able to tell them exactly what they think about Marriot Intl, the service and any other constructive criticism or praise.

1. Marriot offers feedback cards or e-mail to learn about the likes and dislikes of their customer base.

2. They keep in touch with their customers and always listen to any complaints or problems with an open mind.

3. They always get aware of customers and their wants and needs. Issues may come up that they will not be privy to unless they stay close to what their customer’s needs are.

4. Marriot Intl. maintains customer complaint records to provide an accurate measure of the types of issues that arise, frequency of complaints and feedback received. In some instances complaints may decrease as the product or service improves.


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5. However if the complaints about the same issues continue to skyrocket then Marriot’s Staff begins to brainstorm and experiment with methods to further improve the business.

Utilization of the entire work force: Quality improvement can also be achieved by the utilization of the entire workforce. Not surprisingly, Marriot International is one of the best personifications in this regard. They have utilized their entire work force to reinforce quality management of their services.

During our visit to Marriot Islamabad, we approached many different employees and asked as to their roles within the organization. They replied us that their role is to fortify this organization in order to have job security, which is not a cup of tea in today’s world.

Although, in Pakistan, unemployment has been rising with an astounding rate, but organizations like Marriot, always give job security to its employees what make their employees more enthusiastic to strengthen the quality of the organization.

Utilization of entire work force to drive quality:

They use following dimensions to foster quality in their well reputed organization:

Payroll and benefits They always motivate their employees by giving them high salary in order to utilize their resources for a longer run.

HR administration


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HR of Marriot Intl. has really stepped up to plate by assigning tasks, which are compatible to one’s capability.

Teams: Marriot usually formulate different strategies to form a product. To do so they have to build up cross functional teams in order to conduct a survey.

MBWA: We have been told that Management by Wandering Around is an important implemented tool of Marriot Hotel, which really drive employee satisfaction.

Theories of Motivation:

All motivational theories are being considered by Marriot intl. such theories are very much helpful for higher ups to boost up workforce morale at the end of the day.

Develop Interesting Work:

Managers of Marriot consider altering the employee’s assignments by means of job rotation, job enlargement, and job enrichment.

Celebrate Success:

Recognizing employee achievements is the most powerful tool in the Marriot’s toolbox.

Utilization of entire work force can also encompass field service management. This provides software to optimally plan and dispatch field service technicians and their properly stocked vehicles to a customer's location in a timely manner in order to deliver against their service commitments. Field service management will itself include elements of:


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Demand management – to help forecast work orders to plan the number and expertise of staff that will be needed

Workforce scheduler – using predefined rules to automatically optimize the schedule and use of resources (people, parts, vehicles)

Workforce dispatcher – automatically assigning work orders within predefined zones to particular technicians

Mobile solutions – allowing dispatchers and technicians to communicate in real time

Continuous Improvement: Marriot strives to achieve perfection by continuously improving the business and production processes. Of course, perfection is impossible because the race is never over; however, one must continually strive for its attainment.

Marriot has been improving the quality of their services in order to retain its market share. Continuous improvement in its interior decoration is very much commendable. They have recently employed various interior designing experts from abroad so as to captivate its customers through its beauty.

Interestingly, we have seen a quote in the Marriott Islamabad:

“Strive for continuous improvement, instead of perfection.”

This quote determines the importance of continuous improvement in an organization and Marriot International has been improving day by day in order to maintain its status in the market.

Treating suppliers as partners: Suppliers play a fundamental role in the total quality management. In our questionnaire, we asked the attendants that what is the stance of Marriot International with respect to treating the suppliers as partners?


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Not surprisingly, we concluded our aforementioned query by have a very rewarding answer from the attendants. Some of them have said that they are aware of this important concept of TQM that one has to treat their suppliers as partners in order to bring in better quality.

As we know, suppliers have an integral role in terms of quality of food. However, Marriot’s management refers vertical integration as a positive source to give adequate consideration to its suppliers. They have integrated their suppliers for the stability of their business processes.

Establish performance measures for the processes: Managing an organization without performance measures is like a captain of a ship navigating without instrumentation. The ship would most likely end up traveling in circles, as would an organization. Measures play a vital part in the success or failure of an organization.

However, Marriott international has been using following indicators to bring in better quality for its customers.


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Let’s discuss each indicator one by one with respect to Marriott international:

Discrete random indicators:

These are those indicators who have a clear independent shape or form. These indicators give the inference as to the processes of the organizations. As far as Marriot International is concerned, it has various random indicators to keep track the performance of the organization.

Continuous Random Indicators:

These indicators refer the tracking of ongoing processes, such as continuous improvement. Nevertheless, such tasks may not be measured but such indicators are destined to follow the degree of continuous development in the business house.

Marriott international has been fulfilling the demands of their customers by providing continuously launching innovative products to retain the customer for the long run.

Concierge DeskBellhop Service

In the aforementioned pictures, it is shown that Marriott international two very important services are always in flux in order to live up the expectations of their customers. These two services were introduced after the relaunch of the Marriott Islamabad building.

Universal indicators:

Universal maintenance performance indicator is the basis for ranking including technical facilities according to efficiency of their maintenance.

Ranking of technical objects allows for justified focus of operation activities into specific areas of operation system.


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Special indicators:

Special indicators of Marriott international are designed to measure productivity by involving a third person to diagnose the health of the business.

Marriot international welcomes different audit teams to diagnose the health of their business operations. Such special type of indicator is very much useful to track success of the business.

Outcome Indicators:

Such indicators refers to the output in terms of profits, cash flows, market share etc. such type of indicator gives a better picture of the organization that where’s the company is going.

However, Marriott intl. has been showing positive output to ascertain that the company has been lucrative so far.

Performance drivers:

It tells us that what kind of drivers a company has to execute better performance down the road. These are the alternatives which espouse the company to perform well under different circumstances.

Marriot intl. has various performance drivers, which gives them a lot confidence to perform better down the track.

Tools and techniques in TQM: Following are the tools and techniques used by Marriot international to bring in quality improvement for the long run.

In order to complete the framework of total quality management, we were obliged to enrich our research with major tools and techniques to drive out quality in processes.


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Following are the main tools and techniques for the improvement of quality:

Let’s discuss each with respect to Marriot International:

Right First Time:

It implies for the employees of Marriot International to ensure quality while they work. Hence, they have to do the right things first time.

However, management of Marriot Intl. has been aiming for zero defects in order to ensure quality. They strong believe in that retaining customers is the most important thing rather than to raise market share.

Benchmarking:

Benchmarking is the most essential tool to bring quality in the organization. As far as Marriot International is concerned, our group perceived really

It is the process of learning from best practices of other projects that produce superior performance. They do exceptionally high quality things.

Outsourcing:

It is subcontracting services and operations to outside firms who can do them cheaper and better. As far as Marriott is concerned, they have outsourced many of their operations like advertising, medication etc.

ISO 9000:


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They are set of quality standards created by International Organization for Standardization (ISO). Organizations obtain certification form ISO for product testing, employee training, record keeping, supplier relations and repair policies and procedures.

Statistical Quality Control:

It includes a set of specific statistical tools that can be used to monitor quality. It is based on sampling. Marriot International has been monitoring progress through this tool for acquiring higher benefits.

Just-in-Time Inventory Management (JIT):

Inventories are received just-in-time to be used up by production. They are not stored. Marriot International has been monitoring progress through this tool for acquiring higher benefits.

Speed:

Speed is the time needed to get the activities accomplished. TQM increases speed. Speed becomes a part of project culture. Marriot International has been improving quality through this tool for acquiring higher benefits.

Training:

Employees are provided continuous trainings in quality matters. Quality circles also serve as training grounds for TQM.

Quality management structure of Marriot International:

At Marriot International, they enforce a strict Quality Management System with the principle objective of ensuring client satisfaction. They strongly believe in the key to achieve client satisfaction is a good understanding of their client’s requirements and the capability to consistently fulfill this.

Marriot Quality Management System is ISO 9001:2008 certified and the system.


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The QMS document structure is visualized as a pyramid:

Quality Policies of Marriot International:

Health and Safety Policy

Marriot Intl.’s health and safety goals are to avoid accidents and harm to people. These goals apply equally to their own work places and to the plant and facilities that they design, engineer, manage or service. They achieve their goals by considering health and safety in every activity and in every decision. They identify hazards, assess risks and take actions to eliminate or control them. They seek the involvement of every employee and, where appropriate, customers and suppliers, in this process.

They provide all their employees with safe and healthy working conditions.

Marriot Intl. ensure all their employees are competent to do their tasks and give them adequate training, information, instruction and supervision. They consult with them on matters affecting their health and safety.


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They conduct regular audits and management reviews to ensure compliance with their health and safety management system and to identify improvements.

Environmental Policy

Their goals are to constantly drive down the environmental impact of their activities by reducing waste, emissions and discharges and by using energy more efficiently. These goals apply equally to their work places and to the plant and facilities that they design, engineer, manage or service.

They achieve their goals by considering the environment in every activity and in every decision. They identify hazards, assess risks and take actions to eliminate or control them. We consult with and respond to our customers, employees, public interest groups and all who may be affected by our activities.

They conduct regular audits and management reviews to ensure compliance with their environmental management system and to identify improvements.

Quality Policy

Their Quality goal is to surpass their customers' expectations by adding value at every opportunity.

“We achieve our goal through a company culture of skill and competence within the framework of a Quality Management System that accords with the principles of ISO 9001.”

We conduct regular audits and management reviews to ensure compliance with their quality management system and to identify improvements.

Integrated Quality Management System

Marriot International’s Quality Management System (QMS) defines their approach to the management of all aspects of their work, including the Quality, Health, Safety and Environmental aspects.

At the top is a single document that presents an overview of the entire system. This is followed by statements of company policy.

These policy statements are supported by descriptions of the principles to be employed in different areas of management, such as HSE, Finance and Administration, Human Resources, Project Management etc.

These management principles are put into effect by applying specific work processes, typically defined with the help of flowcharts.


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The flowcharts are hyperlinked to work instructions, standards, forms, templates, sample documents, guidelines etc.

Corporate objectives/Annual Plan Marriot Intl. has following corporate objectives for 2012/13 which remain consistent with their objectives for the previous 12 months:

Improve customer’s safety and clinical effectiveness

Improve the customer’s experience with respect to lodging and hospitality

Deliver excellence in hospitality and lodging.

Ensure financial and environmental sustainability.

Deliver effective and efficient pathways of care.

Be the provider and employer of choice.

Create robust infrastructure for the future.

Our Analysis with respect to Marriot’s Annual plans: Their objectives imply that they are highly concerned with the safety of their customers. That’s why they are having strong craving to improve medical facilities for their customers.

Quality Statement: Marriot International has not been pursuing any specific quality statement; however, our interviewee suggested us the following statement that has been followed by Marriot Intl.

“We achieve our goal through a company culture of skill and competence within the framework of a Quality Management System that accords with the principles of ISO 9001.”


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Qualitative values of Marriot International: They believe their strength is rooted in their core values: putting people first, pursuing excellence, embracing change, acting with integrity and serving their world. These values are their legacy and their future.

As they pursue their vision of making Marriott the #1 hospitality companies in the world, they never lose sight of their founding principles and their proud heritage. Their business is always evolving…but they are always staying true to who they are.

PUT PEOPLE FIRST

Around the globe, they offer their associates fair treatment, respect, and opportunities for personal and professional growth.

Marriott International, Inc., was named one of the “World’s Best Multinational Workplaces” by Great Place to Work® Institute.

PURSUE EXCELLENCE

Marriott's reputation for superior customer service dates back to founder J. Willard Marriott's original goal for his business: good food and good service at a fair price.

“You don’t have to do anything earth-shattering to be excellent, just work hard at the small things.” – Patricia Rainey, Human Resources, Scotland

EMBRACE CHANGE


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To fulfill their vision to be the #1 hospitality company in the world, Marriott continually seeks innovative and creative ways to meet the needs of customers.

“With deeply embedded core values that have enabled us to succeed for 85 years, I am looking forward to an exciting road ahead for Marriott International.” – Arne Sorenson, President and CEO of Marriott International

ACT WITH INTEGRITY

Marriott International adheres to high ethical and uncompromising legal standards in every aspect of our business, from human rights to environmental and social sustainability.

“We need to stand together to ensure that the travel and tourism industry is always a positive force for good in the world.” – J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International

SERVE OUR WORLD

As a multinational FORTUNE 500 company, Marriott focuses on five global social issues: poverty alleviation, the environment, community workforce development, the well-being of children, and global diversity and inclusion.

Quality Improvement Program: A time-tested quality improvement tool still useful today is the "Plan-Do-Check-Act" or the "Plan-Do-Study-Act" model for guiding quality enhancement projects of all types. The PDSA model conceptualizes the continuing cycle of improvement.


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Partner — Decide who are strategic partners of quality improvement and recruit them to the project

Plan — the goals of a quality improvement project will be broad in the context of statewide activities because many partners and processes will need to be involved.

What does the group predict are the current obstacles to quality care? How will the goals be put into action? What data need to be collected to prove that the changes are indeed improvements?

Do — Test the plan and document problems and unexpected observations as data are collected. Initial plans seldom produce desired results the first time. Pilot test the ideas of the group with front-line health care programs, providers, and consumers. Reconvene the partners and discuss successes and problems.

Study — complete the data analysis, compare the results to predictions, and summarize lessons learned. Do the test results convince the partners that full-scale implementation will be successful? Because the scope of activities may be broad and costs may be involved, the planned action should be based on reasonable data and results.


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Act — determine the changes to be made. Implement the changes State- or district-wide. Continually assess those changes through data collection and analysis. Are the changes working? What will happen in the next cycle?

What are the possible obstacles in implementing total Quality Management in a large organization like Marriot International?

With reference to our research upon Marriot International with respect to its total quality management, it is observed that Marriott international has been facing many obstacles in implementing the essentials of total quality management.

Some of aforementioned obstacles are as follows:

1. Competitive markets

A competitive market is a driving force behind many of the other obstacles to quality in the context of Marriot International. One of the effects of a competitive market is to lower quality standards to a minimally acceptable level.

2. Bad attitudes/abdication of responsibility/management infallibility:

The competitive environment, poor management practice, and a general lack of higher expectations have contributed to unproductive and unhealthy attitudes.


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As far as Marriot International is concerned, some of the employee’s attitudes often are expressed in popular sayings, such as “It’s not my job” and “If I am not broke, don’t fix it. Such attitude sayings stem from the popular notion that management is always right and therefore employees are” only supposed to implement management decisions without questioning. 3. Lack of leadership for quality

Excess layers of management quite often lead to duplication of duty and responsibility. This has made the lower employees of an organization to leave the quality implementation to be a management’s job. In addition, quality has not been taken as a joint responsibility by the management and the employees.

As we know that Marriott international is so much diverse, hence, more often various situations arise where the hierarchy isn’t clear, which considerably hinders the implementation of total quality management.

4. Deficiency of cultural dynamism

Every organization has its own unique way of doing things. This is defined in terms of culture of the organization. The processes, the philosophy, the procedures and the traditions define how the employees and management contribute to the achievement of goals and meeting of organizational objectives. However, Marriott international has been functioning in diverse cultures, so it implies that they need to adapt new cultures with alacrity. Therefore, cultural dynamism may also hamper the implementation to total quality control.


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5. Inadequate resources for total quality management

Some Marriot Hotels do not involve quality in their strategic plan; little attention is paid to TQM in terms of human and financial resources. Much of the attention is drawn to increasing profit margins of the organization with little regard as to whether their offers supply to customers is of expected quality. So that also obstructs the implementation of total quality management.

6. Lack of customer focus.

Most Marriot Hotels strategic plans are not customer driven – not to put too fine a point on it. They

tend to concentrate much on profit-oriented objectives within a given time frame. Little (if any)

market research is done to ascertain the product or service performance in the market relative to its

quality.

7. Lack of effective measurement of quality improvement

TQM is centered on monitoring employees and processes, and establishing objectives that anticipate

the customer's needs so that he is surprised and delighted. This has posed a considerable challenge to

many companies like Marriot international. Measurement problems are caused by goals based on past

substandard performance, poor planning, and lack of resources and competitor-based standard.

8. Poor Planning

Most of the times in Marriot International, absence of a sound strategy has often contributed to

ineffective quality improvement.

9. Lack of management commitment


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A quality implementation program will succeed only if top management is fully committed beyond

public announcements. Although Marriot International is strongly committed to bring considerable

quality management in their organization but they need to immerse themselves in order to bring

quality practices.

10. Resistance of the workforce

A workforce is often unwilling to embrace TQM for a variety of reasons. One of the Marriot’s

Executives explained that a lack of long-term objectives and targets will cause a quality

implementation program to lose credibility.

Role played by senior managers in the context of Marriot International: Marriot’s international senior Management is highly committed to ensure quality in its services. Following are the roles played by the senior manages of Marriott international

Their responsibilities can be summed up as:

Disseminating the idea of total quality:

Marriot International’s senior management strongly hammers home the idea of total quality

management among their subordinates. This is one of the best ways to ensure quality in services.

Setting standards like zero failure:


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They set standards for their subordinates in order to produce a quality product. Standards are fundamental for the production of zero defect products and to ensure quality.

Monitoring quality performance (quality costs)

They monitor progress by setting various sensors to track the progress of the company. Not

surprisingly, quality implementation is an ongoing process which calls for a lot of check and balance

to keep the system in place.

Introducing a quality system based on 'prevention' rather than detection

Senior managers ought to convince their subordinates to come up with a product that has zero defects.

Moreover, they constantly instruct to prevent mistakes while making products rather than detecting

the problems at the end of the day.

Introducing process control methods like Statistical Process Control (SPC)

Process control methods are constantly being emphasized by the senior managers of Marriot

International. SPC is very important way to control the processes and to improve it.

Code of Ethics followed in Marriot Intl:

The following principles recognize each Marriot International’s personnel’s duty to act in the public’s interest, to be honest and truthful, to demonstrate personal integrity, and to respect privileged information. All Marriot’s employees will uphold the standards of the legitimate Code of Ethics and the principles of this policy for professional conduct and accountability.

All Marriot’s personnel, including volunteers, are committed to a belief in the dignity and worth of the individual human being. They maintain integrity with respect to their duties as they come in contact with the public, other service providers, and clients and customers.

Principle I: Confidentiality


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It is a primary obligation for all Marriot’s employees to safeguard information as to customers.

Records kept for lodging or other business purposes should contain no unnecessary reference to behavior or social condition. Personal values and judgments are not appropriate in records.

Release of information on employees, customers or clients will be in compliance with Marriot International policies and other federal, State, and local regulations.

Principle II: Professional Conduct

High standards of professional behavior and responsibility will be maintained.

(a) Each Marriot’s employee will take responsibility for assuring the continuity of public services provided by continuing contact and following up referrals made to other agencies or individuals.


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(b) Respect for the rights and privacy of colleagues will be maintained.

(1) The request of a customer to receive services from a particular Marriot’s staff member or provider will be honored whenever possible. Continuity of care is valued and ensured by maintaining a continuing health services relationship between customer and the Marriot’s provider of services.

(2) Marriot employees will direct any criticism of another staff member’s work or actions to that person, to that person’s supervisor, and/or to Human Resources staff only.

(c) Marriot’s staff will not misrepresent his/her professional credentials, qualifications, affiliation, and functions or those of the colleagues, institutions, and organizations with which associated.

(d) Marriot’s medical staff will uphold patient’s rights regarding medical and health care services according to Marriot’s policy.

Principle III: Quality of Service

The maintenance of high standards of professional competence and quality of service is the responsibility of all Marriot’s employees.

(a) A health professional will offer service or use techniques that are generally acceptable to professional judgment and the community in terms of effectiveness and procedure. Controversial issues shall be discussed with supervisory staff and staff actions will meet with supervisory approval.

(b) Each individual will be responsible for recognizing the limitations of his/her competence and will not provide services or use procedures with which he/she is not familiar.

(c) Each professional should seek supervisory or peer advice for problematic issues of Hotel Management.

Principle IV: Moral and Legal Standards


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Marriot’s employees will show regard for the social codes and moral expectations of the community in which they work.

Marriot’s employees will recognize that violations of accepted moral and legal standards may result in personal harm towards Marriot’s customers, colleagues, themselves, and Marriot International as well as cause unnecessary risk to Marriot’s Goodwill.

Outcome of Employee Training in Marriot Intl: Marriot designs various teams to train his employees; they strongly believe that training is one of the best resources to manage the quality of service they provide.

Hence, they pull out all stops to invest substantial money into training his employees so as to put the system in place.

However they condition their employees to perform following tasks:

Inspect supplies, equipment, and work areas to ensure efficient service and conformance to standards.

Control inventories of food, equipment, small ware, and liquor, and report shortages to designated personnel

Recommend measures for improving work procedures and worker performance to Increase service quality and enhance job safety.

Perform personnel actions, such as hiring and firing staff, providing employee orientation and training, and conducting supervisory activities, such as creating work schedules or organizing employee time sheets.


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Analyze operational problems, such as theft and wastage, and establish procedures to alleviate these problems.

Record production, operational, and personnel data on specified forms.

Develop equipment maintenance schedules and arrange for repairs.

Perform various financial activities such as cash handling, deposit preparation, and payroll.

Purchase or requisition supplies and equipment needed to ensure quality and timely delivery of services.

Specify food portions and courses, production and time sequences, and workstation and equipment arrangements.

Estimate ingredients and supplies required to prepare a recipe.

Forecast staff, equipment, and supply requirements based on a master menu.

Evaluate new products for usefulness and suitability.

Compile and balance cash receipts at the end of the day or shift.

Perform food preparation and serving duties, such as carving meat, preparing flambé Dishes, or serving wine and liquor.

Conduct meetings and collaborate with other personnel to plan menus, serving arrangements, and related details.

Present bills and accept payments.

Greet and seat guests, and present menus and wine lists.

Develop departmental objectives, budgets, policies, procedures, and strategies. Schedule parties and take reservations.


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Assess nutritional needs of patients, plan special menus, supervise the assembly of regular and special diet trays, and oversee the delivery of food trolleys to hospital patients.

Employee involvement seeks to increase members input into decisions that affect organization

performance and employee well-being. It can be described in terms of four

What are the key elements that promote the worker’s involvement within Marriot International?

Following are the key elements to promote the worker’s involvement, which can be executed in any

organization, but we’ve been told such elements within the context of Marriot International.

Hence, we elaborate them in accordance with Marriot International.

Power:

This element of EI includes providing people with enough authority to make work-related decisions

covering various issues such as work methods, task assignments, performance outcomes, customer

service, and employee selection. As far as Marriot International is concerned, the amount of power

afforded employees can vary enormously, from simply asking them for input into decision that

managers subsequently make, to managers and workers jointly making decisions, to employees

making decisions themselves.

Information:

Timely access to relevant information is vital to making effective decisions. Marriot International is

promoting El by ensuring that the necessary information flows freely to those with decision authority.


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This can include data about operating results, business plans, competitive conditions, new

technologies and work methods, and ideas for organizational improvement.

Knowledge and skills:

Employee involvement contributes to organizational effectiveness only to the extent that employees

have the requisite skills and knowledge to make good decisions.

Marriot international facilitates El by providing training and development programs for improving

members’ knowledge and skills. Such learning can cover an array of expertise having to do with

performing tasks, making decisions, solving problems, and understanding how the business operates.

Rewards:

People generally do those things for which they are recognized, rewards can have a powerful effect on

getting people. Involved in the organization meaningful opportunities for involvement can provide

employees with internal rewards, such as feelings of self-worth and accomplishment.

External rewards, such as pay and promotions, can reinforce El when they are linked directly to

perform outcomes that result from participation in decision making.


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Juran's Trilogy

Juran's Trilogy is possibly the most simple, complete, and pure representation of managing for Quality ever devised. The trilogy exemplifies the essence of Quality. It completely meets its objective in the most efficient and effective manner possible. As far as Marriot international is concerned, Juran Trilogy can easily be perceived by viewing their improved infrastructure. However, we must elaborate the three major components of Juran Trilogy with respect to Marriot International as follows:

Quality Planning

The process for designing products, services, and processes to meet new breakthrough goals. To do so management of Marriot International has to determine their external customers. In the planning step, once they determine their market, then, they identify the needs of their customers. After the recognition of needs, next step is to develop a product or service to respond to such customer needs.

Then, next step, taken by Marriot International is to develop the processes to produce the product or service more efficient and effective. Transferring plans to operations is the final step of the planning process

Quality Control

The process for meeting goals during operations; it is the most important of Juran trilogy to drive out quality in products. As far as Marriott is concerned, they have ascertained the subjects to be controlled and their units of measure.

They are measuring their actual performance in order to keep the system in place.


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Quality Improvement

The process for creating breakthroughs to unprecedented levels of performance; it implies two major duties for the quality council of Marriott International: one of them is to identify the improvement projects and second is to establish the project teams with a project owner.

Moreover, Juran provides a distinction between sporadic waste and chronic waste. The sporadic waste can be identified and corrected through quality control. The chronic waste requires an improvement process.

Supplier Selection Strategies and Criteria

Supplier selection criteria for a particular product or service category should be defined by a “cross-

functional” team of representatives from different sectors of your organization. In a manufacturing

company, for example, members of the team typically would include representatives from purchasing,

quality, engineering and production. Team members should include personnel with

technical/applications knowledge of the product or service to be purchased, as well as members of the

department that uses the purchased item.


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Marriot’s supplier selection criteria:

Supplier selection criteria for a particular product or service category is usually defined by a “cross-

functional” team of representatives from different sectors of Marriot International. In Marriot

International, for example, members of the team typically would include representatives from

purchasing, quality, engineering and production. Team members within Marriot include personnel

with technical/applications knowledge of the product or service to be purchased, as well as members

of the department that uses the purchased item.

Marriot’s supplier selection criteria are as follows:

Previous experience and past performance with the product/service to be purchased.

Relative level of sophistication of the quality system, including meeting regulatory

requirements or mandated quality system registration (for example, ISO 9001, QS-9000).

Ability to meet current and potential capacity requirements of Marriot International, and do so

on the desired delivery schedule.

Financial stability must be rendered to Marriot Intl.

Technical support availability and willingness to participate as a partner in developing and

optimizing design and a long-term relationship.

Total cost of dealing with the supplier (including material cost, communications methods,

inventory requirements and incoming verification required) should be properly assessed.

The supplier's track record for business-performance improvement.

Total cost assessment.


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Methods used Marriot Intl. for determining how well a potential supplier fits the criteria:

Obtaining a Dun & Bradstreet or other publicly available financial report.

Requesting a formal quote, which includes providing the supplier with specifications and

other requirements (for example, testing).

Visits to the supplier by management and/or the selection team.

Confirmation of quality system status either by on-site assessment, a written survey or request

for a certificate of quality system registration.

Discussions with other customers served by the supplier.

Review of databases or industry sources for the product line and supplier.

Evaluation (SUCH AS prototyping, lab tests, OR validation testing) of samples obtained from

the supplier of Marriot International.

Performance measurement system

Performance Measures are quantitative or qualitative ways to characterize and define performance.

They provide a tool for organizations to manage progress towards achieving predetermined goals,

defining key indicators of organizational performance and Customer satisfaction.


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Performance indicators of Marriot International:

Marriot International has following indicators to track the progress of the company. However, It is a

multinational organization, so it is rational that they have many indicators to monitor the progress of

the company.

However, through our exhaustive research, we found following indicators of Marriot Intl.

1. Staff and Employment KPI's (Key Performance Indicators)

Wage Cost % -wage costs as a percentage of sales. Wage cost determines the performance of

the staff in order to get onto various aspects through which it can be improved.

Total Labor Cost % - not just wages but also the other work cover insurance, retirement and

superannuation charges and other taxes that apply on Marriot’s employees payroll.

Total Labor Hours - how many hours worked in each section of Marriot International. This

is useful to compare against annual sales to measure productivity.

Sick days taken - sometimes a measure of morale and the management skills of Marriot’s

Management team is important. So it has to be reduced for better performance.

Labor turnover (number of new staff in any one week or month) Everyone says high staff

turnover is 'part of the territory' in hospitality. It doesn't need to be like that, but one way to

measure how good (or bad) you are at controlling this is to measure labor turnover.

Average length of employment - another way to look at Marriot’s success in keeping staff.

Average hourly pay – hourly pay of the labor also infers the performance indicator of the

Marriott international.

Occupancy

Number of rooms sold in relation to the number of rooms available for sale. This indicator tells us the

return which Marriot International has been acquiring from their major operation of lodging.


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(Aforementioned picture shows that Marriot international has been in downward trajectory because

their occupancy rate doesn’t show any significant improvement.)

RevPAR

Revenue Per Available Room: Rooms revenue in relation to rooms available.

(RevPAR has been improved in contrast with year 2009 and 2010, which is a good sign for the

company in terms of performance.)

Revenue

All related business revenue of Marriot international (including rooms’ revenue, food & beverage

revenue, other hotel revenue, fee revenue and other non-hotel revenue from administration units).


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EBITDAR and EBITDAR Margin

Operating profit before rental expense and share of income in associates and before depreciation and

amortization and gain on sale of shares and of fixed assets and net financial items and tax. The

EBITDAR margin is EBITDAR as a percentage of Revenue.

(this performance indicator also shows that Marriot International is in downward trajectory.)

EBITDA and EBITDA margin

Operating profit before depreciation and amortization and gain on sale of shares and fixed assets and

net financial items and tax. The EBITDA margin is EBITDA as a percentage of Revenue.


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(this indicator doesn’t show any significant improvement since 2010)

Conclusion and our Group’s Suggestions: It is a delight to say that we had a salutary experience of visiting Marriot International. The overall response of their employees towards our research is so much positive. As far as our project is concerned, we did our best to dig up all the necessary information as to Total Quality Management in order to finish our research comprehensively.

We used almost all methods to collect the information as to Total Quality Management to discover the major crux of our inquisitive attitudes that how this theory of quality can be implemented.

However, from our comprehensive research we give following suggestions to Marriot International in order to stay ahead in terms of quality:

Focus on the customer rather than focusing to raise profits. Profits can never be sustained if the customer is not satisfied. In today’s competitive environment, Marriot has to be customer driven in order to reap higher profits.


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They have to be very much thoughtful towards their suppliers. As it has many hotels across the borders, so for the retention of its original taste they should not change suppliers more often. Vertical integration could be the possible remedy to retain suppliers for the long run.

Continuous improvement should have to be acquired in order to maintain good quality products and services.

Performance measures ought to be reflective with the level of actual performance of various processes.

They must utilize the entire workforce to bring in better quality management. However, they’ve been trying harder in theory as to the utilization of entire

Workforce, but they have to formulate proactive strategies for the utilization of entire workforce from top to bottom.

They should recognize their employees by giving them rewards in order to make their efforts countable towards organization’s success.

Juran trilogy, SPC, Benchmarking etc should be used to drive out quality.

Make up their quality statements so that others get motivated to create some change.


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References:

http://payroll.naukrihub.com/compensation/direct-compensation.html

http://www.ventanaresearch.com/researchCategory/HumanCapital/

http://www.marriott.com/culture-and-values/core-values.mi

http://www.ahrq.gov/professionals/quality-patient-safety/quality-resources/diabguide/diabqguidemod5.html

http://ckbooks.com/management/organization-development/employee-involvement/

http://www.its.ny.gov/pmmp/guidebook2/Performance.pdf

http://www.mymajors.com/careers-and-jobs/first-line-supervisors-of-food-preparation-and-serving-workers

http://www.customerexpressions.com/cex/cexweb.nsf/(GetPages)/CAC4DB21930B8EAF852570890045E294

http://rcrmc.org/home/index.php?option=com_content&view=article&id=5&Itemid=5

http://whj.hubpages.com/hub/Role-of-Senior-Managements-in-Implementing-Quality

http://www.wisegeek.com/what-is-a-code-of-ethics.htm

http://smartinvestorsreports.blogspot.com/2012/03/barriers-to-total-quality-management.html

http://www.cypq.org/about/approach


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Appendix:

Our Questionnaire:

How much you rate the significance of total quality management for an organization?

1.Important 2. Little Useful 3.undecided 4. Not Useful 5. unimportant

At what level, you rate quality as the fundamental part of an organization in order to achieve long term objectives?


How much are you satisfied with the quality management of Marriott international?

1.very satisfied Little satisfied 3.undecided 4. not rewarding 5. unsatisfactory

How much an employee of Marriott international would like to contribute for the attainment of better quality management?

1.strongly agree 2. Agree 3.undecided 4. disagree 5. strongly disagree


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At what extent, Marriott international has utilized its entire workforce for the betterment of quality?


What is the importance as to continuous improvement in the organization like Marriot Intl?


Does implementation of total quality management merits careful attention from all employees from top to bottom?


Role of senior management affect the quality of entire organization, does better senior management can improve the quality of Marriott international?



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Some

Interviewing Questions:

How much quality as an individual means to you?

Continuous improvement has the immense potential to make organizations high flying with ease. How much you rate continuous improvement for your very own organization, Marriot International?

As we know that customer is the only one who provides job security to employees; how much Marriott intl. considers his market while launching new products?

Does Marriott international have the unwavering focus over the customer so as to improve the quality of its products?

What are the major obstacles in the implementation of total Quality management? Unwavering focus over the customer; what does this statement infers for an executive of Marriott international?

TQM

Honda Motors

ZeeshanAslamBhatti Majid Hussain RizwanYousuf Saqib Jamal


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PICTURE OF HONDA & ITS LOGO


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IN THE NAME OF ALLAH

The most beneficent, the most merciful

Let man consider his food

How we pour water in shower

They split the earth in cliffs

And cause the grain to grain to grow there in

And grapes and green fodder

And olive tree and palm

And garden

Close if thick foliage

And fruits and grasses

Provision for you and your cattle

(Surah Al Abbas)


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ACKNOWLEDGMENT

First and foremost, we would like to thank to my supervisor of this project, Lecturer Col(R)

Manzoor Iqbal Awan for the guidance and advice. He inspired us greatly to work in this

project. His willingness to motivate us contributed tremendously to our project.

We would like to thank him for showing us some examples that related to the topic of our

project. Besides, we would like to thank the authority of Bahria University for providing us

with a good environment and facilities to complete this project.

Finally, an honorable mention goes to our Teachers, Families and Friends for their

understandings and supports us in completing this project. Without help of the particular that

mentioned above, we would face many difficulties while doing this project, finally we

completed this project with our effort and strength and able to present it to our instructor in a

favorable manner.


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TABLE OF CONTENTS

1. Distribution of Work…….……………………………………………………………………………………....pg 06

2. Teacher's Remark …….……………………………………………………………………………………........pg 07

3. Objective of the study…….……………………………………………………………………………………..pg 08

4. Summary………………………….…………………………….....................................................pg 0 9

5. Methodology……………..…..…………………………………………………………………………………....pg 10

6. Implication of TQM In Industry……………………………………………………………………………..pg 11

7. HONDA Background……………………………………………………………………………………………..pg 11

8. Code of Ethics………………………………………………………………………………………………………..pg 12

9. Mission and Vision Statement……………………………………………………………………………….pg 12

10. Other Business Principles Of Honda……………………………………………………………………...pg 13

11. Six Basic Concepts Of Honda………………………………………………………………………………...pg 14

Involved Management…………………………………………………………………………………………..pg 15

Customers……………………………………………………………………………………………………………..pg 15

Utilization of Workforce……….……………………………………………………………………………….pg 17

Continuous Improvement….………………………………………………………………………………….pg 18

Supplier Selection……………….…………………………………………………………………………………pg 22


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Performance Measures………….……………………………………………………………………………..pg 23

12. Obstacles In Implementing TQM……………………….………………………………………………....pg 24

13. SWOT Analysis……………………….……………………………………………………………………………..pg 26

14. Suggestions…………………………….……………………………………………………………………………..pg 28

15. Conclusion……………………………….…………………………………………………………………………….pg 29

16. References…………………………….…………………………….................................

.........pg 30

17. Appendix………………………………….……………………………………………………

……………………….pg 31

Questionnaires…………………………….……………………………………………

………………pg 31


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DISTRIBUTION OF WORK

NAME: TASK ASSIGNED

Haffiz Zeeshan Aslam Bhatti

(Group leader)

Make the questioners and coordinate the group

tasks to each member in the project report.

Conduct the survey of project.

Interview the company’s subordinates about

quality prospective.

Majid Hussain Compiles the data from the net and other

searching material articles.

Helps and coordinates in making of the

questionnaires.

Organize the data which we get through our

survey.

Rizwan Yousaf Interpret the data outputs of our survey in a

comprehensive way and analyze the obstacles

regarding to project report.

Conducted the phone interview on HONDA

Motor with its sale and general manager.

Helps in the preparation of table of contents and

its topic allocations.

Sardar Saqib Jamal Arranged the meeting with the executive to ask

about the various questions relating to TQM.


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Involved and participates very actively while in

the preparation of project report.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To study the attitude and satisfaction among the consumers and Management related

to the Total Quality Management for HONDAATLAS limited.

To study the basic core values of HONDA with the collaboration of total quality

management.

To study and implement the tools and techniques for quality improvement by

considering accurate skill and knowledge for HONDAATLAS Motors co ltd.

SECONDARY OBJECTIVE:

To study and analyze various factors influence the Quality of HONDAATLAS.

To find out the effectiveness of Total Quality Management for the HONDAATLAS

Pakistan.

Customer’s satisfaction through implementing TQM techniques in HONDAATLAS

Motors.

Abstract

HONDAATLAS Cars Company is a joint venture between HONDA Motor Company Japan

and HONDA Motor Company limited Japan has 51% shares in this joint venture, so the main

profit shares as well as designing, development ideas and costs are bear by HONDA Motor

Company Japan ltd. In all over the world, engines of almost of all kinds of product HONDA

is a “Giant” manufactures in the engine industry. HONDA produces boats and generators


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also. HONDA ATLAS Cars Company Pakistan limited is really well known Motor vehicle

company. We found no contradiction when we compare the statement of HONDA staff with

general dealers and customers. HONDA cars regarded as # 1 due to high quality engines and

several other features relate to the quality. HONDA has contributed a lot in gas efficient cars,

by introducing the HONDA civic hybrid .HONDA ATLAS cars maintains quality standards

to meet the higher quality. Maintain higher reputation in the market due to its quality

offerings of its products because these Products are meetings the customers’ expectations.

HONDA ATLAS cars gives priority to consumer satisfaction and it is the constant make an

effort of the HONDA ATLAS cars of Pakistan is to;

“Achieve the # 1 customer satisfaction”

Key words: 1. Continuous improvement 2. Quality 3. Customer satisfaction 4. Process improvement 5. Quality function deployment 6. Statistical process control 7. Quality council 8. Management commitment 9. Employees involvement 10. HONDAATLAS Pakistan

METHODOLOGY

We have administered our final project of total Quality Management as to HONDAATLAS.

To rise to the challenge we have used following modes to conduct our survey:

Questionnaires

Personal Interviews

Prior to our meeting with the Raza Ahmed Zaidi, we have made our self questionnaire in

order to dig up important information as to Total Quality Management of HONDAATLAS.

We floated the Questionnaires among all the employees from top to bottom. They

participated actively in our survey for their own company’s goodwill. One of the attendants

appreciated our survey.


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Moreover, we have used a lot of other resources to enrich our research. We delved into

different books as to Total Quality Management for Large Organizations. Also, we exploited

the use of internet so as to augment our research as to HONDA International.

IMPLICATION OF TQM IN INDUSTRY

Success of TQM depends on how well a company evaluates the processes, products, and the

markets of today to try and find out what the customer of tomorrow wants. It has been

evident from past marketplaces that companies show more support to short-term interests that

even if they do have a long-term strategy if often lacks commitment from top management.

Implementation and the success of TQM can be seen clearly using the example of Honda.

Many other Japanese car manufacturers have also followed pursuit. When trying to

implement TQM it requires both behavioral and cultural change. A successful TQM brings

together management, behavioral and cultural commitment to customer quality.

HONDABACKGROUND: HONDAATLAS cars Pakistan limited is a joint venture between HONDA Motor Company

limited Japan, and the atlas group of companies, Pakistan. The agreements signed between

the two sponsors are for technical collaborations for development parts and systems for

manufacture of HONDA cars in Pakistan. Pakistani and Japanese cultures have blended

exceptionally well to form a professional team of dedicated specialist. The company was

incorporated on November, 1992 and joint venture agreement was signed on august 1993.

The ground breaking ceremony was held on April 17, 1993 and within a record time of 11

months, construction and erection of machinery was completed. The first car rolled off the

assembly line on May 26, 1994. Official inauguration was done by president of Pakistan,

Sardar Farooq Ahmad khan Leghari. It is the constant undertaking of HONDAATLAS cars

(Pakistan) limited to achieve no .1 customer satisfactions. HONDAATLAS cars (Pakistan)

limited are committed to meet customer expectations, and to provide good value for


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money. In 1996 the full model change of HONDA civic introduced, after just one and half

year of commencement of production. Three models in civic VTI, EXI and LXI with 1.6l and

1.5l engines were introduced in VTI and EXI models respectively. In 1997 HONDA city 1.3l

car in ET and ex models and HONDACITY EXI with 1.5l were launched.

CODE OF ETHICS

VISION AND MISSION STATEMENTS

Basic Principles

Respect for the individual. The Three Joys (buying, selling and creating)

VISION:

“Focusing on “satisfaction” (customer’, associates’ and shareholders’) with challenging

spirit and flexibility, we are dedicated to supplying latest generation cars with advanced

tech--neology, greater fuel efficiency and competitive prices, along with friendly and

efficient after sales back up, maintain “quality” as core of all activities.”

MISSION (WORLDWIDE):

"Maintaining a global viewpoint, we are dedicated to supplying products of the highest

quality, yet at a reasonable price for worldwide customer satisfaction."

QUALITY POLICY:

At HONDA we are committed to focus all are activities leading to:

1. Manufacturing high quality products.

2. Customer satisfaction.

3. Service to society.

4. Maintain market leadership.

HONDAATLAS cars Pakistan limited is a quality conscious company. That’s why HONDAATLAS

cars Pakistan limited is the first automobile company in Pakistan who has achieved “ISO 9002”

certification.

QUALITY STATEMENT:


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“Achieve the # 1 customer satisfaction”

ENVIRONMENTAL POLICY:

HONDAATLAS CARS (PAKISTAN) LIMITED, being responsible member of society

considers the preservation of the global environment as a crucial concern reviewed on 30th

June; 2004.Our environmental philosophy is firmly based on the following guidelines.

Recognize the impacts of the significant aspects on the environment resulting

from our activities, products and services.

Operate in compliance with relevant environmental laws, regulations and other

requirements that apply to our activities.

Create environment friendly attitude among associates.

OTHER BUSINESS PRINCIPLES OF HONDA:

Following are different policies &principles of HONDA namely:

MANAGEMENT POLICY :( respect, man power importance, 3s spirit, 3A “hand on

approach”, be a corporate citizen).

CORPORATE POLICY: (ideal working environment, adequate return to share holders,

dynamic marketing &manufacturing).

PRIORITY STANDARDS OF CONDUCT :( safety, quality, productivity).

HUMAN RESOURCE:( hiring competent associates, providing opportunities for internal

mobility through personal training and development, enabling them to take higher position).

SAFETY, HEALTH AND ENVIORMENT :( complies with applicable Govt.

requirements, avoid risks to human health).

OPERATING PRINCIPLES :( Always keep the dead line; never make excuses, team

work).


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OUR VIEWS:

With our views Mission and Vision statements of HONDAATLAS are exactly meeting the

customers’ expectations by providing Quality and quantitative products. Generally we saw

that HONDA is making their products which are environmental free and provide better safety

precautions to their employees and customers according to the standards and Laws.

SIX BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT

TQM requires six basic concepts:

1. A committed and involved management to provide long term top to bottom

organizational support.

2. An unwavering focuses on the customer, both internally and externally.

3. Effective involvement and utilization of the entire work force

4. Continuous improvement of the business and production process.

5. Treating suppliers as partners.

6. Establish performance measures for the processes.

Let’s discuss each one by one:

1: INVOLVED MANAGEMENT:


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Firstly there is the "Involved management". This basically fine tunes and revitalizes

management in producing bottom line products or services resulting hopefully in customer

satisfaction. Kawamoto CEO of HONDA implemented TQM with the advice from the

founder of the company, Soichiro. When TQM was implemented at HONDA production

lines were reconfigured to speed the process and allow greater flexibility. Engineers were

expected to create designs that could be manufactured more efficiently. Honda's new strategy,

which the CEO describes as "customer focused", has increased sales and improved profit.

Another area of this approach is to decide conflict, decision-making, meeting management as

well as traditional areas of measurement and continuous learning. For this purpose

Management of HONDAATLAS used Q-STEP.

The Q-STEP simplifies quality into five basic competencies.

Q-Quality Maximization

S-Skill Maximization

T-Team Participation

E-Excellence for customers

P-Prevention of waste

The Q-STEP works with existing culture and takes advantage of current "good practices".

2: CUSTOMERS:

It the second basic component of Total Quality management HONDA has maintained the

relationship with his customers. It is the policy of the HONDAATLAS that they listen to their

customers and always consider them to maintain the good reputation and share values

.Officials of HONDAATLAS also want zero defective goods that ultimately provide benefits

to the customers.


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CUSTOMER SERVICE CENTERS:

All the authorized dealerships in Pakistan are a source of customer satisfaction. To facilitate

the customers for any assistance they require, we have a separate department, called

Customer Relations, at the head office. This department is supported by the subsequent

Customer Relations Officers at all dealerships. The purpose of Customer Relations

Department and Customer Relations Officers is to enable our customers in getting any sort of

help required by them.

FREE SERVICES:

HONDA is a customer service conscious company, for which it is always looking for

avenues to develop further relations with the customers who have already purchased the cars.

We consider purchase of car as the beginning of relations with customers. To prolong this

relationship and encourage the customers to keep on coming to the dealership, to get theirs

cars maintained the HONDA way we provide three FREE CHECK-UP SERVICES to our

customers.

These are basically three periodic check-ups at 1,000 Km, 5,000 Km and 10,000 Km

mileage which are normally done after 1 month, 3 months and 6 months of running the car.

Other than providing service to customers another reason for this facility is to stress on the

importance of periodic maintenance. For these free services the labor is not charged, whereas

the customer has to pay for only the consumable like engine oil, oil filter etc.


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REPAIR AND MAINTENANCE:

HONDA is providing regular trainings to the dealers' technicians. The trainings cover all

aspects of the cars including the periodic maintenance, diagnostics, trouble shooting and

repairs according to HONDA standards. From this we want to facilitate the customers in

maintaining their cars in top-most condition and enjoying the comfort and performance of the

luxury vehicles they own. It is our effort to have uniform service standards made available at

all dealerships in accordance with the international HONDA standards.

ANNUAL SURVEYS:

HONDAATLAS Cars Pakistan Limited arranges the annual surveys in which different

activities are done:

1. Customer Satisfaction

2. Market Share

3. Customer Choice (a. Reading Habits b. TV Watching Habits)

4. Brand Survey

5. Social Group

6. Market Trend

3: UTILIZATION OF WORKFORCE:

HONDAATLAS has improved workforce, which has been conditioned to behave proactively

utilizes its abilities at its best working level which includes the employee empowerment it

also helps the senior management to listen the lower level employee's staff and solve their

problems. HONDAATLAS knows who their employees are and what they work for, and if

they know their employees it is easy for them to monitor in an appropriate way.

HONDAATLAS have good communication skills according to the region and place where

they have their regional offices.

As HONDAATLAS set and communicate customer-focused strategy, they become smarter in

acquiring and keeping quality staff. Selecting, training and motivating staff to work together,

particularly in cross-functional teams, enables faster problem identification and resolution,


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process execution and overall productivity. In Honda, well-trained and motivated employees

also have more control over their work and a greater sense of ownership in the company.

4: CONTINUES IMPROVEMENT:

HONDAATLAS has established a Quality Center to bring together the various components

of their organization concerned with products quality data, to enhance their worldwide ability

to both prevent quality issues and quickly detect and resolve them when they occur. The

facility gathers quality-related data from dealers in Japan and overseas through service

departments and the Customer Relations Center. Measures and policies for preventing quality

issues are then developed based on the issues identified from this data and provided as

feedback to R&D and production departments responsible for operations including product

design, manufacture, and supplier’s selection.


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Aggressively ensuring quality in both design and manufacturing

Working in partnership with suppliers, HONDA is involved in a companywide effort to

deliver products with a new level of enhanced quality. To ensure high quality, HONDA

conducts aggressive quality assurance activities from the dual perspectives of design and

manufacturing

A. ASSURING QUALITY THROUGH DRAWINGS:

Honda's R&D departments create drawings for maximum ease of manufacture in order to

limit process variability and prevent human error during the manufacturing process. These

drawings serve as the basis of our quality assurance efforts. Specifically, engineers utilize a

database of measures and techniques for preventing past market quality issues and other

information as they communicate closely with manufacturing departments during the initial

development stage.


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B. ASSURING QUALITY THROUGH PRODUCTION PROCESSES:

Honda's production departments establish manufacturing control items and standards for each

part, process, and work task based on designers' intentions in order to prevent product quality

issues. Engineers then use these manufacturing control items and standards to verify

manufacturing variability as they work to prevent quality issues.

C. ASSURING PART QUALITY THROUGH SUPPLIER AUDITS:

Assuring the quality of procured parts is an important element in delivering high-quality

products. HONDA visits its suppliers' manufacturing facilities to conduct quality audits based

on the "Three Reality Principle," which emphasizes "going to the actual place," "knowing the

actual situation," and "being realistic." These audit activities are conducted for both the

production preparation and mass-production stages of supplier operations. Experts in the

development and production of individual parts visit manufacturing facilities and conduct

audits of suppliers' quality systems and their implementation.

5: SUPPLIER’S SELECTION:

HONDAATLAS maintains free trade treating all suppliers equally regardless of size location

or national origin. HONDAATLAS has developed and maintains basic purchasing policy that

can be described as HONDAATLAS will buy from most competitive suppliers in Order to

fulfill customer’s satisfaction. HONDAATLAS ensures its suppliers selection criteria upon

the Quality. Cost .Delivery, Development and Management.

HONDA also participates its supplier selection in development which relates to design its

outsourcing parts in order to utilization of suppliers expertise which helps the HONDA to

develop the best design in the shortest time frame .HONDAATLAS makes strong

relationship between its suppliers that there will be many opportunities for growth and

expansion within its suppliers network. HONDAATLAS works to improve quality through

activities that emphasize communication with suppliers, for example by sharing audit results

and cooperating to discover measures for improving quality. Atlas HONDA Limited is

committed to establish mutually beneficial relations with its suppliers, customers and

business partners. In its business dealings it expects its partners to adhere to business

principles consistent with its own.


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6: PERFORMANCE MEASURE:

HONDAATLAS measure its performance dimensions through various aspects like

How well we are doing?

Are we meeting our goals?

Are our customers satisfied or not?

Are our processes in statistical control?

If and where improvements are necessary

HONDAATLAS measures Most of its performance through one of the following six general

categories. However, these categories are depending upon the organization Mission.

1. EFFECTIVENESS: HONDAATLAS indicates the degree to which the process output

(work product) conforms to requirements. (Are we doing the right things?)

2. EFFICIENCY: HONDAATLAS indicating the degree to which the process produces

the required output at minimum resource cost.

3. QUALITY: HONDA Motors also check the quality of product or service meets

customer requirements and expectations. For this purpose HONDA make quality

council in its organization.

4. TIMELINESS: HONDAATLAS measures whether a unit of work was done correctly

and on time. The criterion is usually based on customer requirements and their needs

and expectations.

5. SALES: HONDA Motors measures its performance by sales criteria that how much its

sales are increasing day by day and on the other hand reasons of decline in sales .its

purpose is to check either there sales persons achieving their targets or not.

6. SAFETY: HONDA also Measures the largely health of the organization and the

working environment of its employees.

EXAMPLE:


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Using second-generation line end testers (LETs) to inspect electronic control systems

Use of electronic control systems in vehicles has grown dramatically in recent years as part of

an effort to achieve more environmentally friendly designs and improve driver and passenger

convenience and comfort, creating a need for efficient inspection methods to assure the

quality of these components.

To this end, HONDA has installed line end testers (LETs), an inspection and diagnostic

system developed in-house, at production plants in Japan and overseas.

OBSTACLES IN IMPLEMENTING TQM

I. LACK OF MANAGEMENT COMMITMENT:

When management of HONDA talks about TQM, they infer a very irrational respective as to

Total Quality Management. However, HONDA fails to support the implementation of TQM;

it will ultimately fail to meet prior expectations. The result is suspicion and mistrust−and

difficulty launching another attempt. For implementation to succeed, management must

clearly and frequently communicate the reason for adopting TQM.

II. CHANGING ORGANIZATIONAL CULTURE:

Changing an organization’s culture is extremely difficult and time-consuming. Fear of change

must be addressed, past labor-management conflicts must be resolved, and the organization’s

focus must change from maintaining the status quo. Most employees supposed to be

convinced as to the benefits that TQM program would provide to buy in for the changes. This


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often means that employees need to change behaviors or perform tasks in a different way

than before TQM.

If motivation is lacking, frustration and stress are likely. And trust is a must.

III. PREPARATION:

Before implementing TQM in Honda, management should strive for an organization wide

commitment, clearly communicate with the organization’s vision, mission, and goals, and

foster open communication about the organization’s changed focus.

IV. USE OF DATA:

Management of HONDA relies on data-based decision making for implementation of Total

Quality Management. To succeed in building and sustaining a TQM environment at Honda,

data must be accurate, timely and reliable. The measurement process used must be valid and

consistent, and data access should be efficient. Decision makers must be trained in data

analysis and interpretation.

V. LACK OF CUSTOMER FOCUS: Sporadically, strategic plans of HONDA Pakistan are not customer driven. They tend to concentrate much on profit-oriented objectives within a given time frame because targets are set by the head office to finish the current stock and manufacture the new one .They are required to finish the last year model as fast as they as can because they want to cover the cost of last year inventory before launching the new model. Little market research is done to ascertain the product or service performance in the market relative to its quality. HONDA surveys are as costly and thus little concern is shown to quality improvement for consumer satisfaction. VI. LACK OF EFFECTIVE MEASUREMENT OF QUALITY IMPROVEMENT:

HONDA is centered on monitoring employees and processes, and establishing objectives that anticipate the customer's needs so that they get satisfied and delighted. HONDA has posed a considerable challenge to many companies. Measurement problems are caused by goals based on past substandard performance, poor planning, and lack of resources and competitor-based standard.


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VII. POOR PLANNING: The absence of a sound strategy has often contributed, by Honda, to ineffective quality improvement. Although some managers had not been pleased with their progress on their quality implementation agenda, they gave quality planning low priority. Their Planning are short term oriented when one model is launched they sets their plans according to those models and focuses on short term sales enhancement.

Other problems, many of which fall under the four previous categories, include, but are not

limited to:

• Lack of cooperation and teamwork among different workgroups

• Focus on short-term profits rather than on long term goals

• Failure to focus on customers’ need and expectations

• Lack of mutual trust and respect among level of employees

• Lack of continual and effective training and education

• Management’s failure to recognize and / or reward achievements

SWOT ANALYSIS

STRENGTHS:

The image of the company is well established well renowned in the eyes of the

individuals of the world.

HONDA is offering to its customer’s luxurious comfort, power and style according to

the expectations of their customers.

As everybody knows that HONDA do not compromise with their quality standards so

they delivers genuine parts of their product to their end users with 6months warranty.

It uses latest technology and luxurious interior in the vehicles to provide better quality

products.


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Japanese technology is used in the manufacturing of parts for HONDA Motors.

WEAKNESESS:

The booking procedure of HONDA is too long, as it takes done 6 months to get the

orders delivered this shows that their service quality is not so good.

Availability of substitutes means that many new companies introduce their products at

low cost and better quality. Whereas HONDA has the quality products but their costs

are exceeding off limits.

OPPORTUNITIES:

The HONDA Company can expand the network of its distributors all over Pakistan

and they must contribute their facilities to the lower areas.

Opportunities for export in the under developing countries.

Chinese are providing vehicles which are of Low quality HONDA Pakistan should

have to provide higher quality vehicles at lesser price to overtake Chinese vehicle

industry.

As the prices of fuel are increasing day by day so HONDA has the opportunity to

introduce their hybrid technology cars in Pakistan.

THREATS:

A threat is in the form of premium which the distributors are taking from the

customers and thus disturbing credibility of HONDA about stability of prices.


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The economic environment is characterized by more uncertainty and it responds more

to the international scenarios.

Political instability, Govt. Taxes and Chinese companies are a threat.

SUGGESTIONS

After visiting this organization and go through our analysis we are at the position to give

some suggestions;

HONDAATLAS CARS should add more product line because it can cash its reputation.

HONDAATLAS CARS should work on the more improvement in its product line .i.e.

cars (both city and civic), generators, and boats.

HONDAATLAS CARS should improve in the quality of producing the gas efficient

cars.

HONDAATLAS CARS conducts its business responsibly in a way to make sure Health,

Safety and Protection from the environmental aspects of its associates and the society.

HONDAATLAS Motors designs such a system, procedure even it should about after

period modification to make them stylish and according to the trends of the market

CONCLUSION

At the end, it is concluded that HONDA maintains its quality by following the correct methods and

measures to assure its betterment for the aim to become a future market leader with respect to its

quality, design, features. HONDA has been providing a bundle of quality services to its customers

and also creates a better image brand name along with other competitors in Pakistan and around the

globe. Main focus of HONDA is to achieve customer satisfaction and to achieve that they have

maintained their Quality and build up a Quality council in the organization. Senior management

should further take the necessary actions to improve the whole system; communicate their actions

among employees and seek employee participation and involvement. HONDAATLAS cars Pakistan

limited is a quality conscious company; that’s why HONDAATLAS cars Pakistan Ltd is the first


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automobile company in Pakistan who has achieved “ISO 9002” certification. We are also thankful to

our respected and honorable teacher who assures us to learn the quality objectives which helps us a lot

while preparing this project report and this also helps us to increase our knowledge and skills for

future practices.

REFERENCES:

WWW.Bexcellence.Org

http://www.honda.com.pk/safety/index.html

http://www.honda.com.pk/pakistan/index.html

http://world.honda.com/business-overview/automobiles/history/

www.scribd.com

http://www.honda.com.pk/sitemap/index.html

http://world.honda.com/timeline/auto/

http://world.honda.com/profile/philosophy/


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APPENDIX

OUR QUESTIONNAIRES:

1. Do you think that implementation of TQM is important for HONDAATLAS Motors?

1.Strongly Agree 2. Agree 3.undecided 4. Disagree 5. Strongly Disagree

2. Are employees pursuing the aims and objectives of HONDAATLAS Motors?


3. Are you satisfied with the quality management policies of HONDAATLAS Motors?


4. Is this a place for better job opportunities of employment and career development?


5. At what level HONDAATLAS Motors acquires good communication skills for the betterment

of entire workforce total quality management?

1.Strongly Agree 2.Disagree 3.undecided 4. Agree 5. Strongly Agree

6. Does continuous improvement process should make the HONDAATLAS Motors a quality

leader with respect to its other competitors?


7. Does the senior managers play important role for the supremacy of HONDAATLAS Motors?

1.Strongly Agree 2. Agree 3.undecided 4. Disagree 5. Strongly


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Disagree

8. How much an employee of HONDAATLAS Motor provides services for the better outcome of quality perspective?


9. Does the total quality management control the performance of HONDAATLAS Motors form high level to low level staff?


10. Does any unethical code of conduct may reduces the performance of employees in

HONDAATLAS Motors?


11. If any strike happens does it affect the quality and management of HONDAATLAS Motors?


12. Do you adhere to your company’s philosophy?


13. Do you look at past record when selecting suppliers?


14. Do you reward employees for good performance?

1.Strongly Agree 2. Agree 3.undecided 4. Disagree 5. Strongly


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Disagree

Final project

Submitted by: Group#01

Group Leader: Gulzaib Akram

Group Member: Asim Ramzan

Syed Muhammad Hammad

Fahad Anwar Chaudhary

Submitted to:

Col (Retd) Manzoor Iqbal Awan

Date:06/05/2013


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In the Name of Allah

The most beneficent, the most merciful

Let man consider his food

How we pour water in shower

They split the earth in cliffs

And cause the grain to grain to grow there in

And grapes and green fodder

And olive tree and palm

And garden

Close if thick foliage

And fruits and grasses

Provision for you and your cattle

Surah Al Abbas


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Acknowledgment

We thanks to ALLAH Almighty, the most beneficent and merciful to everyone, who gave us ability and courage to successful, complete this work, because we are nothing without his blessings for us.

First and foremost, we would like to thank to our supervisor of this project, Lecturer Col.

Manzoor Iqbal Awaan for his valuable guidance and advice. He inspired us greatly to work

in this project. His willingness to motivate us contributed tremendously to our project.

We would like to thank him for showing us some examples that related to the topic of our

project. Besides, we would like to thank the authority of Bahria University for providing us

with a good environment and facilities to complete this project.

Finally, an honorable mention goes to our Teachers, Families and Friends for their

understanding and support in completing this project. Without help of those mentioned

above, we would face many difficulties while doing this project.

We would also like to express our gratitude to Mr. Naveed Akhtar Qayyam for giving us

his time and helping us complete the project by providing the requisite information. We

appreciate his help.


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Table of Contents

Distribution of work………………………………………………………...06

Teacher remarks…………………………………………………………….07

Abstract……………………………………………………………………08

History of K&N’s……………………………………………………........09

Introduction of K&N’s……………………..………………………..……10

Company Vision…………………………………………………………….11

Company mission ………………………………………………..…….…11

Company goals and objective………………………………….…………11

Company product………………………………………………………...12

Obstacles in implementing TQM………………………………………....14

Performance measurement system...........................................................16

Employees involvement in TQM program in K&N’s……………………17

Employees Training Program……………………………………………..17

What statistical tools do you use to control the quality………………….18

What practices do you operate to control the quality……………………21

Some of the wastage are difficult according to TQM so

What do you do to identify………………………………………………..22


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Company Decision Making………….…………………………..………….22

Steps K&N’s Management took regarding to

Maintain their quality………………………….………….….…………..23

Juran Trilogy……………………………………………………………..23

Company Suppliers……………………………………………………….24

Performance appraisal ………...…………………………………………25

Problem Faced by K&N’s and How they

Cover those problems……………………………………………………..26

Competitors of K&N’s………………………………………..………….26

Target Class of K&N’s…………………………………………………...26

Feedback system of K&N’s ……………………………………………...26

SWOT Analysis………………………………………………….............28

Recommendations………………………………………………………..30

Conclusion………………………………………………………….........31

References………………………………………………………………..32

Questionnaires……………………………………………………………..33


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Distribution of work

Gulzaib Akram (Leader):

Distribute the work among the group members. Abstract & Keywords. Visit the organization. Asked question while interview. Prepare questionnaire. Tools to measure quality. Company suppliers. Write answer of the questions in report.

Asim Ramzan:

History & introduction of company.

Company goals and objective. SWOT analysis. Prepare Questionnaire. Visit of company. Writing answer of questions asked by group members while interview in K&N’s. Final editing the whole report. Write answer of the questions in report.

Syed Muhammad Hammad :

Group Opinion of main question. Visit of Company. Writing answer of questions asked by group members while interview in K&N’s. Conclusion. Write answer of the questions in report.

Fahad Anwar Choudhry:

Recommendation. Visit of company. Help in preparing report and slides. Asked questions while interview.

ABSTRACT

Total Quality Management is a process of continuous improvement and K&N’s aims to

provide, and continue to provide, its customers with products and services that satisfy their

needs .Customer satisfaction is seen as the K&N’s highest priority. According to Quality


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manager company believes it will only be successful if customers are satisfied. The K&N’s is

very sensitive to customer requirements and responds rapidly to them. The concept of

requirements is expanded to take in not only product and service attributes that meet basic

requirements, but also those that enhance and differentiate them for competitive advantage.

To achieve customer satisfaction, the company has to respond rapidly to customer needs. The

tools which K&N’s follow to maintain the quality for their products they checked their

overall work through different standards like (ISO “9001-2008), Halal and HACCP.K&N’s

train their employees and the trainers to report to their upper management about the training

which they conducted. we prepare questionnaire which we asked from the K&N’s employees

for the better understanding of our concept of TQM.K&N’s was awarded with “Brand Icon

of Pakistan” and Harvard Business School is also publishing article on K&N’S.

Key words

Malnutrition Allergenic

Beacon

Hatching

Meritorious

Privileges

endeavors’

enthusiastic diligence Giblets

History:


MBA 3B Page 179

Pakistan is in the list of developing countries where the malnutrition is the major problem.

Because of this, one out of four deaths occurred before the age of five. There was the need of

such full of nutritional food that gives strength and protein to every chicken lover.

The man with the single objective on mind to provide better chicken to every chicken lover

started with the small poultry farm. His name was Khalil Sattar and the journey to success

was started in January 1964. He started his business as a national brand with a small poultry

farm which they gave him success to attain a remarkable position in the food industry.

This was the

simple,

inspired and

nationalistic

beginning of

K&N’s with

a single-

minded

objective of providing better nutrition for Health and Happiness of the Nation.

Introduction


MBA 3B Page 180

K&N’s, a leading name in Pakistan's Poultry Industry started in 1964 with a single minded

objective of providing better nutrition for health and happiness of the Nation, and has since

been a founding pillar and beacon for the poultry industry. With years of poultry expertise

and a commitment to food-safety, K&N’s manages and controls all stages of poultry

production to provide its customers safe and healthy chicken products.

K&N’s integrated poultry operations include poultry breeding, hatching, feed milling, broiler

growing, poultry processing, and production of ready-to-cook & fully cooked chicken

products. K&N’s Quality Assurance Lab monitors and regulates the entire integrated poultry

operations to ensure K&N’s chicken products are wholesome, safe and healthy. K&N’s

manages its own product distribution (including Pakistan's most extensive cold-chain

distribution system) and a chain of K&N’s Chicken Stores for its range of chicken products.

Chickens are HALAL slaughtered by hand (Islamic Zabeeha) strictly according to slaughter

rules of The Shariah. K&N’s slaughtering procedure has been assessed by Darul-Ifta of

JamiaAshrafia and JamiaNaeemia, both authentic institutions for granting Halal certification.

K&N’s further ensures food-safety by implementing the HACCP (international food-safety)

system to produce safe and healthy chicken and chicken products. Additionally, Quality

Management System at K&N’s is ISO 9001:2008 certified, through which K&N’s is able to

control and monitor quality specific factors, which ensure consistency in its products and

services while assuring customer satisfaction.

K&N’s operates a state-of-the-art poultry disease diagnostic & research laboratory

established in collaboration with Pakistan Agricultural Research Council, which provides

extension service to Pakistan's poultry industry in close co-ordination with K&N’s Advisory

Service.

K&N’s has been a trend setter and proven to be instrumental in providing help and support in

modernizing the entire poultry industry in Pakistan. Over the passage of time, K&N’s has

won numerous awards and gained recognition for selfless and meritorious contributions in

developing Pakistan's poultry industry. K&N’s has once again been awarded the Brands Icon

of Pakistan status along with Brands of the Year Award for 2010, for the fourth year running.

K&N’s has also introduced an innovative frequent shopper program for the first time in

Pakistan - The K&N’s Way Club - which will pave way for modern consumer services in the

country. Membership to The K&N’s Way Club is free. As a member, every time customers

shop at any K&N’s Chicken Store in Pakistan, they earn points which have real value. These

points entitle members to receive great awards such as free K&N’s products, special


MBA 3B Page 181

discounts and a higher club status with exclusive privileges.

The K&N’s Way Club offers four status levels. Enroll as a Member and progress towards

higher club status of Silver or Gold with exclusive privileges, or become one of the most

privileged Circle members with a black card. The appreciation of product quality by valued

customers and their continued confidence is testimony of a strong consumer belief in K&N’s

as it endeavors’ to remain a brand par excellence with continued focus on providing safe and

healthy chicken.

Company Vision:

Committed to have superior products and unmatched service through devoted people and

consistent development. Getting more and more consumers and making high profits.

Company Mission:

“K&N’s Safe & healthy chicken - Objective is to providing better nutrition for health and

happiness of the nation”

COMPANY GOALS AND OBJECTIVES:

K&Ns has set a single minded objective for providing better health and nutrition for the

nation. In order to achieve this objective K&N’ Built on years of poultry expertise, and a

commitment to food-safety, K&N’s integrated all poultry production activities under one

umbrella to ensure quality and food-safety managing and controlling all stages of production.

Four basic objectives of absolute integrity, enthusiastic diligence, continuous improvement

and high quality maintenance are at the core of all operations which provide an impelling

urge for attaining perfection. Driven by its basic objectives in pursuit of perfection, K&N’s is

committed to have superior product and unmatched service through devoted people and

consistent development.

According to our group the main objective of the company is to earn profit and satisfy their customers.

Company Products:

The K&N’s business includes the chicken products as follows:


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Whole chicken:

Whole chicken roaster {skin-on, suitable for roasting}

Whole chicken w/o giblets {skin-less, without neck and giblets}

Designer cuts:

Karahi cut {skin-less whole chicken cut into 15-17 pieces. Suitable for

making Chicken karahi and other curries}

Boti cut {combination of skinless drumsticks and breast pieces}

Qorma cut {skin-less whole chicken cut into 15 pieces. Ideal for making

qorma and other everyday curries.}

Boneless meat:

Breast fillet {skinless boneless breast fillets}

Boneless handi {breast fillets cut into small cubes}

Qeema {mixed chicken meat}

Qeema extra lean {extra lean mixed chicken meat}


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Easy cook {ready to cook}:

Nuggets

Chappli kabab

Burger patties

Chicken tempura

Kofta

Combo wings

Croquettes

Haray bharay nuggets

Hot tenders


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Fun nuggets

Fully cooked:

Seekh kabab

Chunks:

Chicken tikka chunks

Green chilli chunks

Obstacles in implementing TQM:

Some important obstacles are given below

Lack of leadership quality

Inadequate resource for the total quality management

Lack of customer focus.

Poor Planning

Lack of effective measurement of quality improvement

Lack of management commitment

Resistance of the workforce

Lack of proper training/Inadequate Human Resource Development.


MBA 3B Page 185

Obstacles According to K&N’s:

Lack of time: Sometime there is a shortage of chicken at K&N’s. So to fulfill the demand for the final

consumer they assure chicken from different sources and this is very time consuming process.

So they didn’t deliver product on time at their stores.

Lack of Understanding:

Quality assurance Manager told us there is a lack of understanding between lower level

employee’s and management. It arises due to qualification of Lower staff because mostly

lower level employees are not much educated. If supervisor introduce anything new to them

then they have to explain them more than two or three times.

Shortage of Birds:

Sometime there is a shortage of birds at their own farms and they have to maintain their

production. So for this they demand birds from open market which usually take much time

and money also.

Lack of employee’s participation in decision making:

According to quality assurance manager mostly decision are made at top level and directly

assigned to lower staff for implementation so there is lack of employee’s participation in

decision making. Sometime because of less or even no participation of employees they faces

internal problem which senior manager not take seriously.

Obstacles according to our group:

Rude behavior of Employee:

We visited K&N’s store at Liaqat Bagh Rawalpindi. Over there we faced a very bad

experience. Because of rude behavior of employees. They did not explain anything related to

importance of quality products for K&N’s and any other information related to our projects.

Lack of Education:

K&N’s employees other then management are not much qualified to understand modern

techniques for the success of their business so they have to recruit qualified employees which

are capable to understand quality importance and need the area of improvement.

Diverse Culture:


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K&N’s have large number of employees from diverse culture. Sometime they hire employees

those are not capable to understand formal language of workplace like in Peshawar city they

hire mostly Pukhtoon employees because in this city they have large number of Pukhtoon

customer which are increasing day by day so when manager take surprise visit they have to

appoint translator for better understanding the problems of their employees and customer as

well.

Performance measurement system: Performance measurement is the process of collecting, analyzing and/or reporting

information regarding the performance of an individual, group, organization, system or

component. It can involve studying processes/strategies within organizations, or

studying engineering processes/parameters/phenomena, to see whether output are in line with

what was intended or should have been achieved.

How K&N’s measure Performance:

In order to improve the overall performance of the K&N’s store. K&N’s installed security

cameras in every retail stores and by those cameras they easily monitor ongoing activities in

the stores. They have established the sole department which is in Lahore for only monitoring

the activities of the store of K&N’s. They also take surprise visit to their outlets and retail

stores for inspection

Group Opinion:

In our opinion K&N’s adopted very strict policies regarding to maintain their overall

performance. They have installed cameras in every store on the other side they inspect their

workers in production unit on daily basis the instructor used to check overall cleanness of

their workers. So they are carrying a very effect strategy regarding to maintain the

performance of the K&N’s.


MBA 3B Page 187

Employees involvement in TQM program in K&N’s

K&N’s mostly made centralized decision for their organization. But if they need any ideas

they also take information from the lower and first line employers of the company but

majority they don’t take any information directly from the lower staff. Only the professional

personnel of the company made the overall strategies of the company the sale associates or

the managers for the quality improvement visit’s the stores and took the feedback and then

they report it to the upper level of the organization for making the successive policies for the

company.

Employees Training Program:


MBA 3B Page 188

K&N’s conduct different training programs for their employees in order to enhance the

overall performance of the company. The employees which are working in the retail stores

K&N’s provide 6 months training to these employees and they give salary to their trainers as

well. The training is usually conducted in head office or the regional office where all the

skilled employees train the sale person for the company by asking different questionnaires

that how they can handle the complaints of the customers? What type of attitude they show

while interacting with the customers? They also rotate the employees position in the stores in

order to make them more efficient for handling consumer, on the other hand In every three

months they conduct different workshops for their middle line employees in which heads of

internal quality management team report about the training program to the upper

management (workers to supervisor), and to make the whole training program effective the

trainers give report to the head of the department every week.

Group Opinion:

K&N’s conduct training for their employees in every 3 months and the trainers report to

upper management about the training. Which they conducted, In report they mention about

the overall feedback they conduct 6 months training for their new employees who worked in

stores.

What statistical tools do you use to control the quality? The tools which K&N’s following to maintain the quality for their products they checked

their overall work through different standards like (ISO “9001-2008) Halal and HACCP.

Halal:

Pakistan is a Muslim country where there was the need that the frozen chicken must be Halal,

so in order to keep the company’s image clear K&Ns received the Halal Certification from

Darul-Ifta of JamiaAshrafia and JamiaNaeemia, both authentic institutions for granting Halal

certification.


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ISO 9000:

The ISO 9001 certificate is suitable for all sizes of organization and is well established

around the world as an invaluable quality management system. It is suitable for organizations

in all industry sectors and will help your organization to improve management processes to

compete locally and/or globally. The process encompasses the entire organization and

requires senior management buy-in; it is not just a function of the Quality Department. To

achieve ISO 9001 certification your organization needs to demonstrate that it can meet the

regulatory requirements and apply the system effectively to be of real customers. The ISO

9000 family of standards is related to quality management systems and designed to help

organizations ensure that they meet the needs of customers and other standard which K&N’s

follow is HACCP this standard is use for food safety system. K&N’s slaughtering procedure

has been assessed by Darul-Ifta of JamiaAshrafia and JamiaNaeemia, both authentic

institutions for granting Halal certification. K&N’s products are all HILAL which are

acceptable in Muslim society.


MBA 3B Page 190

Hazard analysis and critical control points:

HACCP is a systematic preventive approach to food safety and allergenic, chemical, and

biological hazards in production processes that can cause the finished product to be unsafe,

and designs measurements to reduce these risks to a safe level. In this manner, HACCP is

referred as the prevention of hazards rather than finished product inspection. The HACCP

system can be used at all stages of a food chain, from food production and preparation

processes including packaging, distribution, etc. The Food and Drug Administration (FDA)

and the United States Department of Agriculture (USDA) say that their mandatory HACCP

programs for juice and meat are an effective approach to food safety and protecting public

health. Meat HACCP systems are regulated by the USDA, while seafood and juice are

regulated by the FDA. The use of HACCP is currently voluntary in other food industries.


MBA 3B Page 191

Group Opinion:

According to our opinion the certification which K&N’s get is one of the main tool for their company. It will provide satisfaction to their final consumers and in result it will increase more consumer reliability on their product.

What practices do you operate to control the quality?


MBA 3B Page 192

They conduct goods manufacturing practices within the processing unit to maintain the

quality of the chicken the supervisor daily check the workers just to make sure that all

workers are mentally or physically healthy the supervisor also check the cleanness of the

workers on daily bases and this whole processes performed by the inspection team just to

avoid any unhygienic problem or make the product more safer for the final consumer.

Group Opinion:

K&N’s is very much concern with its quality. They are monitoring their production process very strictly. They examine their workers very costly that performs their work at production unit in order to insure that they provide the best quality to their final consumers.

Some of the wastage are difficult according to TQM so what do you

do to identify?

While cleaning the chicken in the factory they get so much waste material like gezzat, heart,

intestine but they use this waste material in a very efficient way K&N’s has made up their

small retail stores near to their factory unit where all these items like heart, gezzat, intestine

they sold it to the consumer who cannot afford the chicken by keeping a low prices they can

easily avail those products and in this way they get small amount of their waste material

which they cannot sell it in their outlets.

Group Opinion:

They identify their waste material very efficiently. K&N’s used to sell the chicken based products. The waste material which they obtain while cleaning the whole chicken are totally waste for the company but still they have establish stores near to its production unit. Where they sell these waste material to customers at very low prices.


MBA 3B Page 193

Company Decision Making:

Centralized decision making is whereby a top manager retains most decision- making

power to him/her self. Decentralized decision making is any process where the decision

making authority is distributed throughout a larger group. It also connotes a higher authority

given to lower level functionaries, executives, and workers. K&N’s are using decentralized

decision making in which they collect information from their lower level employees and

valuable customers and make decision according to their best knowledge in the annual

general meeting.

Group Opinion:

K&N’s make centralized decisions mostly so they do not take suggestions from the lower staff in order to make whole decision for the company K&N’s relay on top executives of the company. They should take feedback from the other employees of the organization in order to sketch better strategies for the company.

Steps K&N’s management took regarding to maintain their quality:

We met Mr. Ehsan who was the manager of K&N’s store situated near Liaqat Bagh

Rawalpindi according to him he said to us that there is a general and unannounced inspection

on stores by K&N’s management regarding to improve the overall quality of the stores.

There are camera’s installed at every store and those camera’s are directly interconnected at

Lahore’s head office there is a sole department which K&N’s made for the inspection of all

the stores in Pakistan..

They provide their own standardize freezers just to make sure the to maintain the quality and

they also adobe strict policy regarding to the employees cleanliness and hygienic matters.

Juran Trilogy:

Juran triology based on three important components such as,

Budgeting (Planning)


MBA 3B Page 194

Expenses Measurement (Controlling)

Cost Reduction (Improvement)

K&N’s is using Juran's Triology first they make plan according to company’s budget and

they also use previous record to make plans. They also plan how to use source of the

company to become more efficient. K&N’s firstly prefer to satisfy their customer mean.

K&N’s is a customer oriented company after that they control their expenses such as they

introduce neck pack because previously they bought whole chicken but they are treating neck

as their wastage but now they are utilizing their resources to measure expenses. K&N’s also

reduces their cost by proper check and balance such as when they bought chicken from

outside suppliers they measure weight before and after making finish goods so by this way

they reduce chances of fraud by third person.

Companies Supplier:

According to the person we met he said to us that K&N’s has their own chicken farms and

they have their own birdfeed production. The probability of middle man at K&N’s is very

low. They have their own setup and they are relying own their own so their interaction is very

low with middle person.


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Local suppliers:

In case of shortage in their farms they also have the backup plans for covering the shortage

for the chicken. Because they need approximately 70,000 chicken per day and if their farms

are not providing chicken as they require. Then they move to local supplier and contract with

them for covering the shortage of chicken.

Open Market:

If they didn’t get the desired amount of chicken from local contractor then they moved

towards the open market to fulfill the demand of their stores according to Mr Zeeshan he told

us that K&N’s deliver about 70,000 chicken daily in north region to its stores.

They have their own local transportation system and they deliver their products on every

store by their own. The big 40 wheeler trawler’s services are taken by the company from the

outsider. They have some middle persons which are working with them regarding to sell their

products like all the super stores and big name like metro are also selling K&N’s product they

build very strong relation with those cooperate partners and they also provide initiatives to

those store if they exceed from the target sale they provide their own defreezer which is for

free they only took the security.

Group Opinion:

K&N’s have their own farms but they have also the backup plan as well. In case of shortage they refer to open market and other suppliers to fulfill the demand of the stores. This is effective planning K&N’s has made for the company.


MBA 3B Page 196

Company Performance Appraisal: They provide incentives to their employees and they also give awards to their employees who

give high performance in their department. Basically K&N’s have two type of increment

Increment by government

Special increment

Special increment:

If the performance of the employees is extra ordinary the company provide additional

benefits to its employees and these benefits are other than routine increments of the company.

This type increments are usually called as special increment.

Government increment:

This increment announced by the government after every year in its budget. That is generally

applicable for all government or private employees and it avails by all employees of the

organization regardless what type of performance they give to the organization.

Group Opinion:

K&N’s also provide incentives to their employees for giving good performances within the organization. This is what K&N’s make stronger position in the food industry. They empowering their employees and it will increase the overall performance of the company.

Problem faced by K&N’s and how they cover those problems: Mr. Ehsan told us that K&N’s has faced very major issue few year back that was a complete

failure of their product. Which was sausages after launching their product they didn’t get the

response from the market that was the main issue which they faced afterwards they cover that

problem by making a sole marketing department in K&N’s. Before that issue there was a

minor department work’s to sketch their marketing strategy. They sought out the problem and

cover it up nicely. The main issue of the failure of the product was that they didn’t advertise

their product efficiently in the market that’s why customer didn’t get the information about

the product which was sausages.


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Company Competitors: According to the Mr. Ehsan he said our competitor is Menu, Dawn, and Pak-food they are

competing with almost the same product line. But K&N’s have large market share and they

are leading in the market because of their quality products.

Company Target Market:

They are focusing on upper and middle class. Their products are not affordable by lower

class.

Company feedback system:

K&N’s use three things for the feedback of their product and quality

Complaint box

Emailing

Comment box

Complaints Box:

Recently they have launched a new campaign in which they are placing the complaint box in

each store. So they get suggestion from their customers regarding to the quality. They took all

complaints seriously and they take actions on complaint to make the product better for the

customers they also reply frequently to those complaints.

Emailing:

The most effective feedback system is email because according to the person we met he said

that emails are directly link to upper management who check email on daily bases.

Comments Box:

Comment box is available at company’s website. In case of any problem or information about

new product customer give comments and company senior employee and management check

comments frequently and give reply to those comments.


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SWOT Analysis:

STRENGTHS:

Along with the developed brand identity

and trust reposed by customers, K&N’s

has established its name in international

market as well.

The company is now a producer of its

own unique type which produces various

categories of products segmented for

different chunks of population while

remaining in lowest costs.

This is driven by a factor of self

production plants which are self

sufficient to produce ingredients and

helping materials by themselves for

K&N’s finished products.

Another factor is the strong supply chain

through its distribution channels. These

factors are the basic strengths of our

product inherited from the company

setup.

The unique taste and first time

introduction in the markets have a vast

scope in the product line of its nature.

WEAKNESS:

Though no company is a perfect in

business activity performances yet

pricing strategies have been the pinching

element in company’s market

positioning.

Though the products are cost effective as

we take quality under consideration yet

most of the products are targeted for the

upper class of society. We can use

appropriate and differentiated pricing

strategy to avoid this weakness.

OPPORTUNITIES:

As K&N’s majorly operates in Pakistan,

a country where distribution of products

is limited to specific areas within an

urban sector hence grooming their

product of under such circumstances has

always been an opportunity for K&N’s.

By improving their Distribution channels

THREATS:

Threats are always there in poultry

oriented firms so K&N’s keeps an eye on

new competitors in dealing with different

products related to chicken and poultry.

At present the only threat is the diseases

spread amongst broiler chickens which

can be prevented by establishing medic


MBA 3B Page 199

as well as pricing strategies for , can give

a robust increase in brand equity and can

promote their product demand overall in

the market.

The comparison of the prices of chicken

parathas produced at “tandoors” cannot

be done if hygiene is kept in view.

control at breeding premises of company.

In case of the introduction of firms

producing frozen chicken paratha might

be a threat which could be considered

well before the start of production.

Recommendation:

According to our analysis it is recommended that as there is more demand in market and sometimes due to shortage of birds K&N have to outsource from other farms they should extend their farm size and should have proper analysis of market so that they should meet the market demand.

Sometime there is a shortage of final products of K&N’s so in case of emergency need of customer they give order to production and processing unit for more products by this it consumes more time and they do not give delivery on time for this reason they should make a proper back up plan to meet customer need on time.

Quality assurance Manager told us there is a lack of understanding between lower level employee’s and management. It arises due to mental level and qualification of Lower level employee’s because mostly lower level employees are not much educated. They should provide training to their employees to avoid such obstacles.

Effective measurement of quality improvement should be implemented for implementing total quality management and efficient products.

Decisions are made at top level and directly assigned to lower staff for implementation so there is lack of employee’s participation in decision making. Lower staff employees should me motivated and should be actively involved in decision making as it can improve product quality because they are more sometimes directly in contact with the customers.

Employees should be praised for their better performance this will not only motivate them but also improve the company efficiency because more the employee is motivated more is he loyal to company and more motivated and dedicated to work.

Conclusion:


MBA 3B Page 200

K&N’s possessed the largest farms in Pakistan which is situated in Abbottabad and they also

conduct their own business activities like poultry breeding, hatching, broiler growing, feed

milling, poultry processing, distribution and quality assurance lab. They produce their own

feed and they also supply that feed to local farms as well the probability of third person at

K&N’s is very low they are relying on their own incase of any shortage they have also the

back up plans they also make contracts with locals farms if they face any shortage they

moved toward these farms to fulfill their demand. They transfer their all products by using

their own transportation system K&N’s adopt very strict rules for maintaining the quality for

their products in every three months they conduct trainings for the internal employees for

improving their technical skills, on the other hand the supervisor daily examine the workers

regarding to their cleanness and physical fitness they didn’t compromise in these issues and

they also call up weekly based meetings for their employees and they discuss the overall

activities of that week on the other side upper management also conduct surprise visit at retail

stores and they also installed the camera in every store and they have made a separate

department for monitoring the activities of the stores.

K&N’s is maintaining its quality efficiently and that’s why they are on the top selling

company in recent K&N’s awarded with “brand icon of Pakistan” and Harvard business

school is also publishing article on K&N’S because of its fantastic performance in the food

sector. We have seen that they are very much concern with their overall performance and

they monitor their all activities very closely that’s why K&N’s growing their setup very

rapidly recently they have made their store in Gilgit where they deliver their products

directly.


MBA 3B Page 201

References:

http://www.kandns.com/

http://www.brecorder.com/supplements/88/1221591/

http://www.scribd.com/doc/73731025/Marketing-Strategy-of-K-N-s

http://www.scribd.com/doc/122104426/K-N

http://www.9001superstore.com/iso-9001-tips.php?gclid=CN71otuTyrYCFVFv6wod50wAQQ

http://www.fao.org/docrep/005/Y1579E/y1579e03.htm

Naveed Akhtar Qayyum (Regional Sales Manager)

Ehsan ( Regional Quality Assurance Manager


MBA 3B Page 202

Questionnaire:

1. Describe how quality has been improved in the organization over the last few years? a. And How K&N’s did come into existence?

2. What is the concept behind it?

3 . What i s your pr oduc t l i ne?

4. Do you have any quality control department?

5. What practices do you adopt to control the quality?

6. What total quality management tools do you use for the effectiveness of your products?

7. What statistical tools do you use to control the quality?

8. Some wastages are difficult to identify according to total quality management so what do you

do to identify those?

9. Do you have any proper feedback system? How and what is it? From employees and

customers point of view.

10. What do you think is a proper quality control department? Do you think there should be any

improvement?

11. What is your strategic planning goal, and quality improvement program?

12. What are the Obstacles in implementing TQM program in K&N’s?

13. What is the major role played by senior management in TQM?

14. What is your code of ethics?

15. Training of first line employees to handle customer complaint carefully?

16. What is the Employees involvement in TQM program in K&N’s?

17. Is K&N’s used Juran triology for development?

18. Supplier selection criteria (bird feeding urea)

19. What is your main performance measurement system?


MBA 3B Page 203

Shifa International Hospital

Shifa International Hospital

2013

NAME ENROLLMENT

NO#

SHAHZADA

SULEMAN

01-120121-069

ZEESHAN TAHIR 01-120121-087

AKHTIR HUSSAIN 01-120121-005


MBA 3B Page 204

Contents Design/methodology/approach ................................................................................................... 207

Findings .................................................................................................................................... 208

Quality: ......................................................................................................................................... 208

Total quality management: ............................................................................................................ 208

Importance of health sector and contribution of our work for this sector:........................................ 208

Introduction ................................................................................................................................... 210

Shifa International Hospital (History) ............................................................................................ 210

Vision: .......................................................................................................................................... 212

MISSION: ..................................................................................................................................... 212

Quality Policy at Shifa: .................................................................................................................. 213

Leadership of Shifa International Hospital: .................................................................................... 214

Quality management department: ............................................................................................... 214

Leadership role in quality management at “Shifa”:......................................................................... 214

Quality can and must be managed: ............................................................................................. 214

Don’t treat symptoms, look for the cure: .................................................................................... 215

Every employee is responsible for quality: ................................................................................. 215

Quality must be Measureable: .................................................................................................... 215

Communications: .......................................................................................................................... 216

Strengthened competitive position: ................................................................................................ 217

Quality council: ............................................................................................................................. 217

Annual quality improvement program: .......................................................................................... 218

Decision Taking: ........................................................................................................................... 218

CODE OF CONDUCT or CODE OF ETHICS: ............................................................................. 219

PROFESSIONAL-CONDUCT: ................................................................................................. 219

ADHERENCE TO INSTITUTIONAL POLICIES AND PROCEDURES: ................................. 220

EVALUATION AND FEEDBACK: ............................................................................................. 221

How customers are satisfied at Shifa: ......................................................................................... 222

General facilities: .......................................................................................................................... 223

Telephone & Fax: ...................................................................................................................... 223

Television:................................................................................................................................. 223

Shifa card: ..................................................................................................................................... 223

Inpatient facilities: ..................................................................................................................... 224

Rooms, Private + ....................................................................................................................... 224

Rooms: Semi Private ................................................................................................................. 225


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General Ward: ........................................................................................................................... 225

Employee Involvement: ................................................................................................................. 226

(a) Financial: ....................................................................................................................... 227

(b) Job security: ................................................................................................................... 227

Methodology: ................................................................................................................................ 228

Training Employee to Accept Responsibility: ................................................................................ 228

Communicating and Giving Feedback: ...................................................................................... 229

Giving Rewards and Recognition: .............................................................................................. 229

Training of first line employees: ................................................................................................ 229

Expected Results / Benefits: .......................................................................................................... 230

Continuous Improvement .............................................................................................................. 231

Juran trilogy: ................................................................................................................................. 232

Quality planning ........................................................................................................................ 232

Quality control .......................................................................................................................... 233

The process for meeting goals during operations; it is the most important of Juran trilogy to drive out quality in products or services. As far as Shifa Hospital is concerned, they have ascertained the subjects to be controlled and their units of measure. ....................................................................... 233

Quality Improvement ................................................................................................................. 233

Measurement of quality ................................................................................................................. 234

Flow chart: ................................................................................................................................ 234

Performance Measurement: ........................................................................................................... 235

Supplier partnering at Shifa: .......................................................................................................... 236

Supplier selection criteria: ............................................................................................................. 236

Impacts on quality improvement: ................................................................................................... 237

Customer and society:................................................................................................................ 237

Companies’ performance: .......................................................................................................... 237

Nation’s economy:..................................................................................................................... 238

Some possible obstacles in implementing TQM in a large organization like SHIFA INTERNATIONAL HOSPITAL ................................................................................................... 238

1. Competitive markets: ............................................................................................................. 238

2. Bad attitudes/abdication of responsibility/management infallibility: ....................................... 239

3. Lack of leadership for quality................................................................................................. 239

4. Deficiency of cultural dynamism............................................................................................ 239

5. Lack of management commitment ......................................................................................... 240

6. Lack of customer focus .......................................................................................................... 240

7. Changing organizational culture ............................................................................................. 240


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8. Lack of proper training/Inadequate Human Resource Development ........................................ 241

Conclusion and suggestions: .......................................................................................................... 241

References:.................................................................................................................................... 242

Questionnaire: ............................................................................................................................... 243

Distribution of work among group members:

Names Tasks assigned

Shahzada Suleman Analysis of quality department, customer satisfaction and role of

leadership in an organization.

Zeeshan Tahir Help in data collection and make analysis on employee

involvement their motivation strategies.

Akhtir Hussain Observe the process improvement strategies, problem solving

methods used and implication of Juran trilogy at Shifa.

Azrim Abbas Analysis of supplier partnership, performance measurement and

conclude the whole project report.


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Abstract:

Total quality management (TQM) is a participative, systematic approach to planning and

implementing a continuous organizational improvement process. Its approach is focused on

satisfying customers' expectations, identifying problems, building commitment, and

promoting open decision-making among workers. Quality management has become one of

the most important and most debated topics within the service sector. This is especially true

for health care, as the controversy rages on how the existing American system should be

restructured. Health care reform aimed at reducing costs and ensuring access to all Americans

cannot be allowed to jeopardize the quality of care. As such, total quality management

(TQM) has become a vital ingredient to strategic planning within the health care domain. At

the heart of any such quality improvement effort is the issue of measurement. TQM cannot be

effectively utilized as a competitive weapon unless quality can be accurately defined,

measured, evaluated, and monitored over time. Through such analysis a hospital can elect

how to expend its limited resources toward those quality improvement projects which will

impact customer perceptions of service quality the most. Thus, the purpose of this report is to

establish a framework by which to approach the issue of quality measurement, delineate the

various components of quality that exist in health care, and explore how these elements affect

one another.

Keywords: Shifa International Hospital, satisfying customers' expectations, identifying

problems, building commitment, promoting open decision-making among workers, code of

ethics, supplier partnership and continuous improvements.

Design/methodology/approach

An interviewer questionnaire was developed to firm selected from the health care industry

which name is Shifa International Hospital, Islamabad. The relevant data gathered from

organizations website.


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Findings – Analysis of the data supports a strong positive relationship between the extent

of implementation of TQM practices and organization performance. This study also found

that co-worker support and organization support moderated the relationship between TQM

implementation and organization performance

We propose that the issue of quality measurement in health care be approached as an

integration of service quality attributes common to other service organizations and technical

quality attributes unique to health care. We hope that this research will serve as a first step

toward the synthesis of the various quality attributes inherent in the health care domain and

encourage other researchers to address the interactions of the various quality attributes.

Quality:

Quality can be defined from different perspectives, such as judgment based criteria, Product

based criteria, user based criteria, manufacturing based criteria and service based criteria etc.

Shifa hospital is service based, value based and as well as user based.

Total quality management:

Total quality management means;

Satisfying the customers or patient first time, every time.

Enabling the employees to solve problems and minimize wastage.

A style of working, a culture more than a management technique.

Philosophy of continuous movement, never ending, only achievable by/or through people.

Importance of health sector and contribution of our work for this sector: The World Health Organization (WHO) defined health in its broader sense in 1946 as

“A state of complete physical, mental, and social well-being and not merely the absence of

disease or infirmity”

. That’s why health sector play a major role in maintenance of health or make a healthy

environment. In the development of any country is necessary that their people must use their

skills effectively or properly do their work in better manner and make planning for their

better future. This can be achievable if the people of that country are in good health. For a


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healthy society need good hospitals those deal with people and provide proper guidance for

improving their health. If hospital apply best in class methods then their patient will become more

satisfied, generate positive word of mouth. Our project describes continual improvement, best

workers performances, how internal customers are satisfied, and ways to improve

performances as well as the suggestions for organization improvement where they are in lack.


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Introduction

We are assigned with our final project of TQM from the very first day of our TOTAL QUALITY

MANAGEMENT’s class. As soon as our instructor assigned that SHIFA HOSPITAL is the

organization on which we have to complete our final project of TQM.

However, our major concern is about how to gather information related to our project about the

SHIFA HOSPITAL. Finally we decided to prepare a questionnaire and go to the organization to

meet the director of quality department of SHIFA INTERNATIONAL HOSPITAL. They have

well communicated information that we needed to complete our final project.

Although, we have got know the concept of total quality management as in theory. It was the

memorable visit of us to SHIFA HOSPITAL and get know the practical implication of TQM in

health sector.

The director of quality management said that every employee of the hospital is responsible for

providing best quality service to the customers.

Shifa International Hospital (History)

The Shifa International Hospital was incorporated on September 20, 1987 as a Private

Limited Company and converted into Public Limited Company on October 12, 1989. The first

Shifa office was established at the residence of Dr. Zaheer Ahmad in sector F-8/3 of Islamabad.

Later it was moved to a rental place in Blue Area (commercial buildings area in Islamabad), and

finally the site office building was established in January 1988.

The idea of developing a high class medical facility in Pakistan was conceived in New

York, USA in the mid of 1985. The initiator Dr. Zaheer Ahmad, who had just finished his

Internal Medicine Residency, called a meeting at his apartment in Brooklyn, New York on the

weekend of July 20 & 21.


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After extensive discussions and many meetings, the present site in the capital city of Islamabad

was selected for this project. The name "SHIFA" was approved because of its

comprehensiveness, originating from our culture, belief and values in totality.

The hospital’s team (founders and sponsors) kept expanding from all across the globe. By the

time of its opening on June 26, 1993, it had crossed 400 plus sponsors, with Rupee 500 million

equity. Till this time the Hospital has not borrowed a single rupee from any other source.

Within three and half years, the Hospital's Block-A with a

five storey structure, plus deck slab area and a mosque

with a total 100,000 square feet covered area was ready to

take its first patient on June 26, 1993. Medical equipments

were installed in the areas of Radiology, Radiation

Oncology, Laboratories, Operating Rooms, Dialysis and

ICU/CCU. The building was fully equipped with all

modern means i.e. central air conditioning, central gas supply systems, fire-alarm system, 750

KVA standby generator etc.

The humble start of June 26, 1993, with eight consultants in seven specialties, has progressed to

more than 70 highly qualified consultants in almost all specialties under one roof. Shifa

International Hospital offers 150 IPD beds with quality care and OPD facility in 35 different

specializations. Nevertheless it is an unending journey. People at Shifa are continuously striving

hard to bring improvement and novelty with every passing moment.

Now after more than one and a half decade Shifa International Hospital proudly stands as a

symbol of quality healthcare with its own brand name "SHIFA". The short history of Shifa

witnessed rare dedication and devotion of its consultants, management and staff who worked

round the clock to make Shifa a reality of its own.

It was the vision of the founding Sponsors which took its shape into reality. The task was

made possible only with the help of their dedicated team of experts and managers under the

quality-oriented and inspiring leadership.


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Today, the hospital’s Block-A along with Block-B and partially constructed Block-C and Block-

G sprawled on its site is efficiently functioning with already finished covered area of 315000

square feet. Last but not the least, as well as first and the foremost, is the grace of Allah which

has made it feasible and viable for us to carry out such a gigantic and enormous venture. Unique

in its concept and efforts by the expatriate Pakistanis to repay back their homeland with a

beautiful gift and a functional institution in the healthcare industry of Pakistan.

Vision:

Shifa International Hospitals Ltd has been established to provide the highest quality of

medical care to the people of Pakistan. Achieving a high level of quality is the result of many

factors:

MISSION:

The mission of the Shifa International Hospital is to provide the highest quality medical

care to all patients in a caring and compassionate manner by an outstanding team of healthcare

professionals in an atmosphere conducive to the practice of good medicine. Our commitment to

quality healthcare goes beyond bricks and mortar.

All of us at Shifa International Hospital are united in pursuit of a single goal; to provide

the highest quality healthcare possible. Quality people…….Quality care.

That will never change the most critical ingredient for the success of a Healthcare

institution is the expertise of its Medical Staff. We are proud to say that at Shifa International

Medical Expertise

Clinical Excellence

State of the Art Technology

Caring People

Preventive Medicine

Health Care Management


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Hospital we have the best trained qualified and experienced group of consultants. Large majority

of our consultants are USA trained and board certified in their specialties and sub specialties. In

addition to providing excellent care to their patients, these consultants have been very actively

involved in setting up Hospital systems, policies and procedures on the same lines and quality as

any state of the art America Hospital. We are also fortunate to have well experienced consultants

who were trained in UK. Therefore, we have the best of both healthcare-systems.

GOALS: Goals are specific outcomes that we expected of our organization as a whole. We believe

that success of an organization can effectively be achieved by building a culture of continual

improvement.

Continuously improve customer satisfaction.

Continuously improve the quality of services and systems.

Continuously improve the Hospital’s financial performance and sustain long-term viability.

Continuously improve the Hospital’s competitive position.

Continuously improve the Hospital’s organization and work environment.

Quality Policy at Shifa:

The quality policy of Shifa International Hospital is to provide cost effective quality

medical care to all patients, ensuring ethical practice of medicine. Our quality objective is to

continuously improve patient satisfaction.

As such quality statement of Shifa International Hospital is good enough. Their continuously

engagement to improve their quality of service and customer satisfaction will help to lead in the

increasing competition.


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Leadership of Shifa International Hospital: The leadership of Shifa International Hospital is in strong hands. I discussed above that in

the history, about capable ownership of it. Same as the Quality management department has the

most responsible and capable leadership that continuously assuring the quality of the hospital.

Quality management department:

There is a separate department of quality management and quality assurance at Shifa

International Hospital. The Director, Quality Management System, Quality Assurance

is Dr. Mati Ur Rehman and Director, Process Improvement and Quality Initiatives

is Dr. Zeeshan Bin Ishtiaque. This department is continuously engaged with the improvement of

quality which is Shifa providing to their clients. They continuously monitoring what they are

providing to their clients and is it satisfying their clients or not?

Leadership role in quality management at “Shifa”: The responsibilities of a leader in an organization are very wide. Following are some important

roles are performing Shifa’s leaders to maintain their service quality in the market.

Quality can and must be managed:


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According to Shifa hospital management they believe that their operations are simply too large

to effectively manage the level of quality. The first step in the TQM process, then, is to realize

there is a problem and that it can be controlled.

Processes, not people, are the problem.

According to the Quality department of Shifa Hospital If the process is causing problems, it

won’t matter how many times you hire new employees or how many training sessions you put

them through. Correct the process and then train your people on these new procedures.

Don’t treat symptoms, look for the cure:

The Quality management of Shifa Hospital said that if you just patch over the underlying

problems in the process, you will never be able to fully reach your potential. If, for example,

your shipping department is falling behind, you may find that it is because of holdups in

manufacturing. Go for the source to correct the problem.

Every employee is responsible for quality:

According to Hospital management everyone in the Hospital, from the workers on the

line to the upper management, must realize that they have an important part to play in ensuring

high levels of quality in their products and services. Everyone has a customer to satisfy and

delight, and they must all step up and take responsibility for them. The management make

everyone in Shifa is responsible for their job.

Quality must be Measureable:

A quality management system is only effective when you can quantify the results. Shifa

Hospital sees how the process is implemented and if it is having the desired effect. It helps the

Hospital to set goals for the future and ensure that every department is working toward the same

result. Leadership continuously monitors the quality results.


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Fact-based Decision making:

The quality management of Shifa hospital In order to know how well an organization is

performing, data on performance measures is necessary. The total quality management We know

that the Quality management requires that an organization continually collect and analyze data

in order to improve decision making accuracy, achieve consensus, and allow prediction based on

past history. Management believes that the decision must be taken according to facts available.

Communications:

The Quality team of Hospital During times of organizational change, as well as part of day-to-

day operation, the quality management team of al Shifa hospital said that in their organization

effective communications plays a large part in maintaining morale and in motivating employees

at all levels. Team said that Communications involve strategies, method, and timeliness. The

communication skills are used to encourage employees as well as their clients. Make sure how

the employees have to perform well.

The Shifa Hospital quality management team gets by implementing quality procedure and rules

our hospital get many benefits those are:


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Strengthened competitive position: Adaptability to changing or emerging market conditions and to environmental and other

government regulations

Higher productivity

Enhanced market image

Elimination of defects and waste

Reduced costs and better cost management

Higher profitability

Improved customer focus and satisfaction

Increased customer loyalty and retention

Increased job security

Improved employee morale

Enhanced shareholder and stakeholder value

Improved and innovative processes

Quality council:

Quality Council has set the standard for excellence in providing services for people with

disabilities. Inspired by a vision of a world of dignity, opportunity, and community inclusion for

all people. Quality Council concerned in the measurement, and improvement of quality of life for

people with disabilities. Shifa International Hospital certified with ISO-9001 best quality

providing organization.

ISO-9001

CERTIFIED


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Annual quality improvement program:

An annual program is developed along with a long term strategic plan. A sense of

responsibility for active participation in making improvements. Employees are asked for

suggestions on what they need to improve their process. Most likely there is more quality

objectives then available resources for accomplishment of these. Another purpose of this

program is to avail those resources to achieve organization quality objectives.

Decision Taking: At Shifa the decision taking authority goes to senior management. I think it is drawback

of the organization but one concerned that upper management regular concerned with regular

activities of the organization. And this is the major reason of the success of the organization.

Employees are asked for suggestion but final decision has taken by the supervisors.


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CODE OF CONDUCT or CODE OF ETHICS: Ethics is a body of principles or standards of human conduct that govern the behavior of

individuals and organizations. It is knowing what is the right thing to do and is learned when one

is growing up, or later date during an organization’s ethics training program. Work force of an

organization consists of different individuals who belong to different cultures and having

different concept about what is right and wrong. Same as Shifa’s workforce also from different

cultures. All Shifa’s employees will uphold the standards of the legitimate Code of Ethics and

the principles of this policy for professional conduct and accountability.

PROFESSIONAL-CONDUCT: The trainees will act professionally at all times.


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ADHERENCE TO INSTITUTIONAL POLICIES AND

PROCEDURES: The trainees will strictly follow all institution policies and procedures.

RESIDENT DEMEANOR:

The trainees will stay presentable at all times including night calls and duties. The

trainees will act and speak in a manner reflective of their status as trainee doctors. They will at

all times be courteous towards their seniors and polite with their juniors.

DRESS CODE: The trainees will dress in a manner cognizant with their status as professionals. Jeans,

joggers, slippers, and immodest clothing are not allowed in the hospital. Dress shoes should be

worn while on duty. Lab coats are required during regular duty hours. The dress should be neat

and clean at all times. Hospital identity badges must be displayed prominently at all times.

DUTY HOURS: Although, arbitrary duty hours have been designated, the duties of the postgraduate

trainees end when the work assigned to them ends.

STRUCTURE OF COMMAND: Each department will designate a Chief Resident. The dictates of the Chief Resident must

strictly be followed. Any changes in duties required of a resident as needed by the hospital must


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be completed as assigned

ISSUES OF DISSENT:

All problems arising in the hospital may be discussed with the Chief Resident. If the

problem is not remedied, a complaint may be lodged with the Director of Medical Education.

CONDUCT UNBECOMING OF A PHYSICIAN:

Any conduct unbecoming of a physician whether regarding professional, ethical or

disciplinary matters will be dealt with strictly. Such conduct may lead to dismissal from the

program.

EVALUATION AND FEEDBACK:

1. A process of regular evaluation is in effect, ensuring feedback from both the supervisors and

trainees. The evaluation will be extensive and multifaceted with an emphasis on learning,

interest, motivation, willingness to perform, commitment to the organization, personal hygiene,

grooming, and discipline.

2. Monthly evaluation for all residents will be done by postgraduate faculty/supervisors with

whom the resident has worked during that particular month. The evaluation forms will be handed

out to the faculty by the 30th of each month and will have to be completed and sent back to the

office of Medical Education by the 1st of the next month. Similar evaluation forms will also be

available to the residents on a quarterly basis to allow feedback regarding teaching and training

by particular faculty.

3. A biannual evaluation of all residents will be conducted by the Program Directors with an

emphasis on weak points and deficiencies, and ways and means to overcome the same. Such an

evaluation by the Program Director will also be inclusive of input from the Chief Resident. At

this point the evaluations will be signed by the residents recording their appraisal.


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4. A biannual discussion with the residents by the Director of Medical Education of the

performance in general as well as re-evaluation with specific emphasis on evaluations received

over the past six months will be conducted. This will include the annual (end-of-year) evaluation.

Remedial measures will be instituted for deficiencies.

5. A yearly mock FCPS test, mimicking the entire pattern of the exam, will be held. A minimum

pass score will be considered essential to obtain a satisfactory evaluation during the yearly

evaluation.

Customer Satisfaction at Shifa:

The most important asset of any organization is its customers or clients. It depends that

which type of the organization manufacturer or service business. In health care industry customer

satisfaction is the first goal of the organization, not increasing profit. On the other hand satisfied

customers will lead to increased profits. For the Shifa International Hospital the customers are its

patients.

How customers are satisfied at Shifa:

To satisfy customers (patients) at Shifa, different strategies are used by management of

the Shifa International Hospital. Such as follows;


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General facilities:

Telephone & Fax:

Rooms are equipped with telephones and you can easily make local calls by first dialing

"9" and the number. For long distance, mobile phone calls or Fax service dial "0" and the

hospital operator will assist you.

The use of mobile telephones is not permitted in ward areas as they can adversely affect

the function of life support medical devices.

Internet Service:

Limited access is available to the patients in coordination with nurse in charge, PSD or

admission office.

Television:

We also provide Color T.V. to keep our patients at floors, cope with the time in their

diseased stated for recreational activity but with a message to respect the right of their in-room

fellow patients, if present.

Shifa card: Shifa International Hospital provides some discount facilities to their clients who holds Shifa

card. The facilities are such as:

Private room charges 7% discount

semi-private room charges/ward charges 7% discount

ICU/CCU/NICU/ER charges 7% discount

Day care / nursery room charges 7% discount

Recovery room on initial 7% discount

Operation room/ litho room and admission

fee charges

7% discount

Consultant fee out-patient/ in-patient 10% discount


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Surgery assistant fee 7% discount

Laboratory test 7% discount

Radiology test etc 7% discount

Clinical procedure /on all packages/pharmacy 5% discount

If interested e-mail / post Application Form (in PDF format). Use our Online

Application Form and pay through mail us your application form along with crossed. Pay

order/Bank Draft in favor of Shifa International Hospitals Ltd.

Price of Shifa card is Rs: 1200 And Renewal price is Rs: 1000/-per annum.

Shifa card is good step taken by the management to satisfy the patients and maintain the effectiveness of

the organization. Card holder can get discounts on all services discussed above offerred by Shifa. It is

good step taken by management to introduce SHIFA CARD to retain their customers and to meet the

customers expectations.

Inpatient facilities:

Inpatient facilities providing by Shifa international Hospital to their clients are as follows:

Rooms, Private +

Centrally Heating & Cooling facility

Attached Washroom

Automatic Beds

Supply of suction and oxygen unit


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Television

Telephone

Nurse Call Bell System

Refrigerator

Sofa-cum-bed

Rooms: Semi Private


Attached Washroom

Specialized Beds


Television

Telephone

Nurse Call System

General Ward:


Shared Washroom


Shared Telephone

Nurse Call System

Manual Beds


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The all above steps are taken by the management of the Shifa international Hospital to

satisfy their customers (patients). It also provides home service to their patients. Three of the

following are just a phone call away from you.

Physiotherapy

Lab tests

pharmacy

Employee Involvement:

Employee involvement

Means that every employee is regarded as a unique human being, not just a cog in a machine,

and each employee is involved in helping the organization meet its goals. Each employee’s input

is solicited and valued by his/her management. Employees and management recognize that each

employee is involved in running the business.

Employee empowerment

is a somewhat different concept. It means that in addition to involving employees in running the

business, employees and management recognize that many problems or obstacles to achieving

organizational goals can be identified and solved by employees. Employee empowerment means

that management recognizes this ability, and provides employees with the tools and authority

required to continuously improve their performance. The management states its expectations

about employees recognizing and solving problems, and empowers them to do so.


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As we are talking about the Shifa international Hospital employees are not empowered, but

management took serious steps to get their involvement toward their jobs. The management

becomes successful to do so because Shifa has very attractive and motivated organizational

culture which is not possible without employee involvement.

The keys to involvement are several and complex:

(a) Financial:

Share ownership and profit distribution plans can help to foster an interest in a company’s affairs

at the competitive level which is often hard to get across in the normal day to day routine of

workplace activity. Some evidence exists for suggesting that limited positive benefits can accrue

from this approach. The management of ‘Shifa’ encourages their employees by offering bonuses,

promotions and with some other facilities such as free family care etc.

(b) Job security:

Doubts as to whether you will still be with the company next week are hardly likely to

encourage a sense of belonging. The structure of the work organization itself determines many

facets of the employment relationship; in particular, job design can influence the degree of

control an employee has over his or her work and, with that, the degree of personal responsibility

felt for the outcomes and quality of work. Traditional systems of shifts, absence coverage and in-

line production methods tend to stifle personal accountability; the job will be done whether or

not the employee turns up and nothing is left incomplete at the end of the day, unlike most

managerial and professional jobs. Consequently employees constrained by such systems feel

little sense of ownership of the total process. Employees of ‘Shifa’ are totally secured at their

workplace. As we look at ‘Shifa’ the employees are satisfied with their jobs. Management said

that employee productivity is increasing day by day and they satisfied with their workforce.


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Methodology: There is no single option adopted by ‘Shifa International Hospital’ to get employee involvement.

It includes suggestion systems, teams, focus groups, surveys, self-directed work groups,

incentive programs and more. In order to implement employee involvement and empowerment

to an enterprise the following key actions need to take place:

Giving employee the responsibility

Training employee to accept responsibility

Communicating and giving feedback

Giving rewards and recognition

Workers today are more and more being asked by management to join employee involvement

programs in order to improve the quality of their work lives. In such programs management

usually wants:

Access to the workers' knowledge of the job.

Cooperation In the introduction of new technology without protest.

Flexibility regarding job classifications, work rules, job assignments, the contract for the

purpose of greater efficiencies.

Contract changes and sometimes contract concessions.

Training Employee to Accept Responsibility: Management of ‘Shifa’ soon discovers that most people lack the skills or experience they need to

take responsibility, make decisions, and act confidently. People need to be trained in their new

roles, given opportunities to succeed, and encouraged. The transition will be faster for some than

others; a few will never make it. When you become empowered, you get additional

responsibility, and some people don’t want that. The training program at Shifa usually held

annually in which employees introduced with new skills and advance techniques to satisfy the

clients and how to increase productivity.


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Communicating and Giving Feedback:

Teams are given feedback at every meeting. Each team has a management sponsor who provides

support and advice. Managers and supervisors are trained in giving feedback during the course.

Teams make presentations on their progress, and management offers on-the-spot feedback. All

these opportunities and more are encouraged as integral to continuous improvement.

Giving Rewards and Recognition:

In place of annual performance reviews, employees participate in more frequent dialogue

sessions with their supervisors. The sessions focus on linking employee activities to the

company’s results. Employee contributions to Shifa’s quality and performance objectives are

honored in a host of recognition programs.

Training of first line employees:


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A training program annually held for employees at Shifa International Hospital. Especially first

line employees who are the first impression of the organization trained how politely they have to

deal with their customers. They are taught with basic communication skills. Management also

encourages their employees to do so by awarding bonuses and promotions.

Expected Results / Benefits: Employee involvement and empowerment approaches aim at enhancing responsibility,

increasing authority, and making jobs challenging and interesting to employees, based on their

abilities and the needs of the organization. The return on such nominal investments will come in

the form of higher levels of employee motivation, creativity, productivity, and commitment. The

benefits taking by ‘Shifa International Hospital’ as such are old and loyal employees, motivated

and self directed with increased productivity and turnover.

Employee suggestions:

Suggestions from employees about organization’s setup are welcomed by Shifa’s

management about the service quality they are providing. “MY VOICE” a form filled by the

employees to give suggestions to top management is used. Employees can convey their messages

through “MY VOICE”.


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When we asked the employees of Shifa about their jobs satisfaction. They said us that they are

very happy their jobs and the only thing is they can’t take decision on their own base. Shifa have

to remove this drawback and trained the employees to take effective decisions.

Continuous Improvement

Quality is not something that can be done once and then forgotten. It’s not a management

“phase” that will end after a problem has been corrected. Shifa Real improvements must occur

frequently and continually in order to increase customer satisfaction and loyalty. Quality is a

long-term investment.

Shifa Hospital Quality management is not believed on perfection. The Hospital consider quality

is a long-term investment, and it is designed to helps us to find long-term success. If the

management satisfied with what their providing than there is no need for improvement (said by

Asst. Director Dr. Samina).

Shifa Hospital Quality management said that:

Before we start looking for any kind of quality management software, it is important to make

sure that we are capable of implementing these fundamental principles throughout the

organization. This kind of management style can be a huge culture change in some organizations,

and sometimes the shift can come with some growing pains, but if we build on a foundation of

quality principles, we will be equipped to make this change and start working toward real long-

term success.


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Continuous improvement must deal not only with improving results, but more importantly with

improving capabilities to produce better results in the future. The five major areas of focus for

capability improvement are demand generation, supply generation, technology, operations and

people capability.

Juran trilogy:

The Juran Trilogy consists of 3 components which are planning, control, and improvement.

Quality planning

A large organization such as Shifa International Hospital would begin with planning. This

planning would be broken in five phases. These phases are:

o Determination of customers,

o Determination of customers’ needs,

o Development of products that meet customers’ needs,

o Development of processes able to produce products that meet customers’ needs,

o Finally transferring development plans into operations.


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After the recognition of needs, Shifa’s management’s next step is to develop a product or service

to respond to such customer needs.

Quality control

The process for meeting goals during operations; it is the most important of Juran trilogy to drive

out quality in products or services. As far as Shifa Hospital is concerned, they have ascertained

the subjects to be controlled and their units of measure.

They are measuring their actual performance in order to keep the system in place with their

standards of excellence set by the management.

Quality Improvement


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After those results taken from quality control, either results met to the standards or not,

there will always room for improvement because n process is perfect. As the management of

Shifa hospital is engaged in regular improvements.

At Shifa International implementation of Juran Trilogy already existed from beginning. Quality

management continuously committed to improvements. They linked with other departments of

the organization to realize at where and which point needs improvement.

Measurement of quality

Six-sigma is normally used by the organizations to identify the problem where is. Shifa

International Hospital uses the Flow Chart to identify the problem and root cause of this

problem. Flow charts are used normally in laboratories where the management sets the standards

of the tests, the results of reports compared with standards and if these are not matched then flow

chart is used to identify where is problem exist.

Flow chart:


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Performance Measurement:

To check the performance of the organization service the management use different strategies

such as feedback and compare the results with standards set by the organization. Normally,

performance measurement is made through customer’s feedback. Shifa’s used different ways to

get feedback from their clients or customers. These are:

Comment cards

Complaint boxes

Directly face to face

Online feedback


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These complaints made by the customers are handled by PFD (Patient Facilitation Department).

Whose responsibilities are to satisfy the clients and forward the complaint to relevant

department? Make sure the same complaint will not make by the clients next time.

Supplier partnering at Shifa:

As we talking to management of Shifa, they said that we research the market then examine the

supplier which can provide us timely and quality products (medicines). They said that they don’t

make partnership with suppliers and they get supply from multiple suppliers.

The management of Shifa offers to their suppliers to attend their training program in which can

know about new technology and advancement in products which customers wants. Ask the

supplier are they able to supply those quality products which they needed then made contract for

supply of those products or services with them.

Supplier selection criteria: There are no specific criteria developed by the senior management of Shifa International to select

from the available supplier in the market. They usually arrange meetings with multiple suppliers


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and tell them about the organization requirement, if some of them are able to fulfill their

requirement with high quality at reasonable cost, will be the organization’s supplier. Shifa does

not rely on single supplier. The management always seeking for new and advanced material

supplier, those can helps to improve their quality service of the organization.

Impacts on quality improvement:

Customer and society:

Customers and society get benefited by quality of organization products by enhancing

customer satisfaction and delight. The higher the quality, the better the civilization. The

improved quality products and organized services make the society and customers more

dependent on them. Quality requirements keep on increasing towards perfection. Failure of

quality has a catastrophic consequence for the organizations products. Improved quality

increases employment and prosperity in the society.

Companies’ performance:


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Through quality improvement there will be spectacular growth in the net profits of the

organization. Quality facilitates the reduction of waste which results in increased quality output

and reduced use of inventory.

Nation’s economy:

The national economy becomes stronger and stronger as a result of exports and earning

foreign exchange brought by quality. Quality helps in raising the living standards of all the

people in the country and helps in improving science and technology.

Some possible obstacles in implementing TQM in a large organization like SHIFA INTERNATIONAL HOSPITAL

An obstacle is an object, a thing, an action or a situation that causes an obstruction.

Obstacles can be physical, social, economic, technological or political. There are a number of

barriers that face the process of TQM implementation at Shifa International Hospital. With

reference of research project on SHIFA INTERNATIONAL HOSPITAL to total quality

management, it is observed that SHIFA has been facing some obstacles for mentioned are as

follows:

1. Competitive markets:

A competitive market is a driving force behind many of the other obstacles to quality. One of the

effects of a competitive market is to lower quality standards to a minimally acceptable level. If

the quality of tasks performed is poor, unnecessary cost is incurred by the company and,


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ultimately, passed to the customer. SHIFA’s management should work by inspiring employees at

every level to continuously improve what they do, thus rooting out unnecessary costs.

2. Bad attitudes/abdication of responsibility/management infallibility: The competitive environment, poor management practice, and a general lack of higher

expectations have contributed to unproductive and unhealthy attitudes. As for as some SHIFA’s

employees often are expressed in popular sayings, such as “It’s not my job” and “If I am not

broke, don’t fix it. Such attitude sayings stem from the popular notion that management is

always right and therefore employees are” only supposed to implement management decisions

without questioning.

3. Lack of leadership for quality

Excess layers of management quite often lead to duplication of duty and responsibility. This has

made the lower employees of an organization to leave the quality implementation to be a

management’s job. In addition, quality has not been taken as a joint responsibility by the

management and the employees. As the leadership of Shifa hospital is so much diverse, but there

is some situation occurred in which management failed to complete the task successfully.

4. Deficiency of cultural dynamism

Every organization has its own unique way of doing things. This is defined in terms of culture of

the organization. The processes, the philosophy, the procedures and the traditions define how the

employees and management contribute to the achievement of goals and meeting of


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organizational objectives. As concerned with SHIFA hospital, employees belongs to different

cultures, management feels difficulty to treat them by single way.

5. Lack of management commitment A quality implementation program will succeed only if top management is fully committed

beyond public announcements. Although SHIFA International is strongly committed to bring

considerable quality management in their organization but they need to immerse themselves in

order to bring quality practices.

6. Lack of customer focus

Most strategic plans of organizations are not customer driven. They tend to concentrate much on

profit-oriented objectives within a given time frame. However, at SHIFA international hospital’s

management focuses on profits. They highly charged from patients. They must be customer

oriented because customers are the real profit of the organization.

7. Changing organizational culture Changing an organization’s culture is extremely difficult and time-consuming. Fear of change

must be addressed, past labor-management conflicts must be resolved, and the organization’s

focus must change from maintaining the status quo. Most employees will need to be convinced

of the benefits of changing culture at SHIFA. This often means that employees need to change

behaviors or perform tasks in a different way. If motivation is lacking, frustration and stress are

likely. And trust is a must.


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8. Lack of proper training/Inadequate Human Resource Development

There is evidence that lack of understanding and proper training exists at all levels of any

organization, and that it is a large contributor to worker resistance. SHIFA’s requires a well-

educated workforce with a solid understanding of basic reading, writing and communication

Conclusion and suggestions: The overall response of the management of SHIFA INTERNATIONAL towards our research is

much positive. As far as our project is concerned, we tried our best to take out all the necessary

information as to Total Quality Management in order to finish our research comprehensively.

We have used all necessary and possible methods to collect information about our project and

complete it. During our research we have found some changes which Shifa’s management should

have to follow and implement them in the organization. These suggestions can increase the

productivity and quality of their service. Our group discussed suggestions are as follows.

Focus on employee empowerment rather than every decision taken by upper

management. It helps to take immediate decision and no waste of time.

They have to focus on customer’s retention rather than profits. Because in fact customers

are the profits of the organization.

Improvements in their services have to be acquired according to good quality based.

They have to focus on supplier partnership rather than choosing supplier randomly from

the market because a committed supplier can provide better quality instead of others.


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They must utilize the workforce by training and educating them at least quarterly rather

than annually.

The upper management should communicate lower employees directly, it resulted

motivated and productive organization environment.

They also have to use some other statistical aspects to measure performance such as

CAUSE/EFFECT DIAGRAM (Fishbone Diagram) and control charts. Not just rely on

flow chart, it is not much effective than others.

References: www.google.com

http://www.shifa.com.pk/shifa/

http://www.shifa.com.pk/shifa/vision.php

http://www.shifa.com.pk/shifa/facilities.php

http://www.shifa.com.pk/shifa/shifacard.php

http://www.shifa.com.pk/shifa/quality.php

http://www.urenio.org/tools/en/employee_involvement.pdf

http://answers.yahoo.com/question/index?qid=20070920061937AAOVGdu

http://tqmgroups.blogspot.com/p/barriers-to-total-quality-management.html


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Questionnaire: Some questions we asked to assistant director of quality management department

(Dr. SAMINA) of Shifa International Hospital.

What is their quality statement and are their service quality based on it?

Are they having quality inspection team?

What are major role of their leadership in quality improvement?

What are the strategies they use to satisfy their customers?

How they can get that their customers are satisfied?

Where the improvement decision taken or it is based on employees who are concerned?

What are the ways used in organization to get feedback?

Are employees can give suggestions about the environment?

Are they using statistical instruments to measure the results?

What are their supplier selection criteria?


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Documents

Prof Col (Retired) Manzoor Iqbal Awan - Spring 2013-Bahria University-MBA 3 B-Total Quality Management (TQM)-Student Research Projects Compilation