Total Quality Management

Muhammad Asif Shafiq 3287

Muhammad Ali Kamal 3285

Muhammad Imran 3292

Redco textile mills

ACKNOWLEDGMENT

All praise to Almighty Allah, the most gracious, the most

beneficent and the most merciful, which enabled us to complete

this project

We feel great pleasure confidence in expressing our since gratitude to our teacher Sir M. Awais Ejaz khan for his guidance, personal support, and friendly attitude for finalizing this project.

We would like to express our sincere thanks and appreciations to our colleague

and members of Redco textiles who helped us a lot for finalizing the project.

Thanks are especially due to our parents, brothers, sisters and friends for their

unlimited patience, cordial prayers and kind support, that gave us confidence in

our self to complete this work.

Table of contents:

1.0 Executive Summary1.1 Mission1.2 Objectives1.3 Keys to Success1.4 Scope of the study

2.0 Company Summary2.1 Company Ownership2.2 Company History (for ongoing companies) or Start-up Plan (for new companies) and Facilities.2.3 Company Locations 2.4 Status and Nature of Business

3.0 Products and Services3.1 Product and Service Description3.2 Competitive Comparison

4.0 Business partners4.1 Suppliers4.2 Retailers and Distributors

5.0 TQM driven customer relations5.1 Customer perception5.2 Customer satisfaction5.3 Is customer the king?

6.0 Business process & TQM Concepts6.1 Communication6.2 Feedback6.3 Employee involvement

7.0 TQM awareness & Implementation7.1 Who is involved? 7.2 Who leads the Process/Policy?7.3 What is the USP/UAP?7.4 What employees feel about TQM standards?7.5 TQM certification?7.6 What tools & Techniques they use to ensure quality7.7 Health & safety

8.0 Your Findings8.1 Analysis

8.1 Suggestion8.2 Recommendation

1.0 Executive Summary:This is a report which we have written in quality perspective on the quality process of the

Redco textiles first of all we describe that what the Redco textiles is aiming and dreamed

about. Then there are some objectives which are followed by the Redco textile after that

some critical success factors of this company on the basis of which it is maintaining its

position. Next we move in this report towards the summary of the company in which we

have mention its ownership, history, location and its nature of the business. After that we

move towards the products which are manufactured by the Redco textile and its

comparative comparison. Then we have mentioned the Business partners and TQM

driven customer relations in whish Customer perception, Customer satisfaction and place

of customer is discussed. In this report we also discuss the Business process & TQM

Concepts, Communication style, Feedback method and Employee involvement issues.

Then what are the TQM awareness & Implementation of TQM concepts and who is

involved in it, who leads the Process, What is the USP/UAP for Redco, what employees

feel about TQM standards, TQM certification of Redco textile, what tools & techniques

they use to ensure quality and Health & safety issues in the Redco textile are discussed

after that we have mentioned the our suggestions and Recommendations for this

company.

1.1 Mission:“To provide quality products to customers and explore new markets to expand sales of

the company. To cultivate a dynamic team for achieving optimum process for companies

products for the profitable land and sustainable growth.”

1.2 Objectives:The objectives of the Redco textile mill are as below

To become a reputed textile mill. To become a fully integrated textile group To be capable of budding profitable associations with the world’s leading brand. To become a market leader in it’s field. To emphases on producing innovative and high quality products. To powerful committed workforce. To hire MBAs from leading local & International universities. To achieve the multiple tasks and listen customers carefully fulfill their needs.

All these are taken into consideration to achieve best results to the satisfaction of our

valued clients.

1.3 Keys to Success:Redco Textile company has the keys to success are a good administration that knows that

the critical success factors can be achieved through perfect performance follow up and

quick response to complaints and observations at the moment and on spot. Then quality

oriented work and agility and maintaining the stock as per demand. Produced the raw

material as per demand, quality checks and balance, performance evaluation of

employees, batter infrastructure of the company are the keys to success. There is

adequate processing facility for yarn manufacturing, there is a quality storage spaces for

the raw and processed material. Then the relations between the management, staff

members and workers are cordial to achieve success.

1.4Scop of The Study

The Present study will help to analyze the total quality implementations in the textile

industry in general and particularly in Redco textile and how for the Redco is successful

to carried out these practices in their operations , why the Pakistan textile industry instead

of having the same resources as the Bangladesh own still lacking in quality output .the

study is based on the personal analysis and the data provided by the management of the

Redco Textile which limits the study to Redco textile practices and implementation of

TQM.

2.0 Company Summary:The company is summarized as below in the following sub-headings

2.1 Company Ownership:

Redco Textiles Ltd is a public limited company in which firms owners are

shareholders (equity holders). Shareholders have limited liability to the extent of their

investments in purchasing the equity. Their ownership can be easily transferred by the

selling or purchasing of equity.

2.2 Company History, capabilities and facilities:Redcos Textiles is an oldest and largest business in Pakistan operating since 1992 and

work as subsidiary of Redco group and certified with ISO 9001, with Authorized Capital

Rs. 250000000 and Paid-Up-Capital Rs. 212926000. And CEO was Saif-ur-Rehman but

now it is Mrs. Sarah Saif khan.

Redco Textiles Ltd is a public limited company listed on the Karachi, Lahore and

Islamabad Stock exchanges. Redcos Textile operations include Spinning, Weaving and

Power Generation. Redco Spinning Mills has a capacity of 25000 spindles capable of

producing 11,000 bags per month of cotton yarn, Slub Yarn and Lycra yarn. Redcos

textile ‘s weaving mill has a capacity of 100 air jet looms capable of producing 1,000,000

meters per month of cotton fabric, Lycra Stretch fabric, Slub Fabric and home textiles

Fabric of up to 108 width. Redco has its own power generation plant worth US$

1,000,000 which was installed in 2007 using state of the art GE-Jenbacher (European) 1

Megawatt gas Engines x 4 Nos. Redco Textiles Limited has an annual turnover of Rs. 1.6

billion on average and employs of 1100 talented and hardworking Pakistanis from all

over the country. The management team consists of Textile Engineers, Electrical

Engineers and MBAs from leading local & International universities.

2.3 Company Locations:The location of its plant is at3 KM, Kalar Saydan Road.P.O. Box Sagri, Rawat, Pakistan. Tel: +92 5777 610 402-4 Fax: +92 5777 610 401 Email: textiles(@)redcogroup.comThe head office is at Redco Arcade, 78-E, Blue Area, Islamabad.

2.4 Status and Nature of Business:Redco textile Ltd is a public limited company with commenced operations in

October 1991. it was incorporated under the companies ordinance 1984 and it is listed on

Karachi and Lahore stock exchange. Redco’s principle activities include manufacturer

and selling of yarn and greige fabric.

3.0 Products and Services:Basically the company which we have selected is not a service based but a quality

product oriented company so that’s why its products are as below.

3.1 Product and Service Description:The products of the Redco textile mill are

Yarn Cotton Fabrics Denim & Jean Fabric Denim Fabrics Grey Fabrics & Cloths Knitting, Knitted Fabrics Textile of all Sorts.

3.2 Competitive Comparison:The Redco Textile Company is optimistic about the future and as a result of settlement

with U.B.L they will be able to buy bulk cotton at competitive rates and of better quality

enabling them to achieve better results as compared to others. Market for yarns and Gray

fabrics will be diversified to increase the customer need and reduce dependency on the

Far East. Product range will also be increased to cater to the differing needs of the buyers.

Fancy and special items like Cavlry Twills, Bedford Cords and Stretch Fabrics will be

developed which are being sold at premium prices which is a competitive advantage.

4.0 Business partners:The supply chain management the business partners are the suppliers, distributors and the

retailers so these are mentioned as follows.

4.1 Suppliers:Redco textile mill take the some quantity of yarn from the Nishat mills in case of lack of

raw material. On the other hand it also takes the yarn from the National group of

companies. And the majority of the yarn has been manufactured by the Redco

textile mill. Other suppliers include.

Arshad texiles Master textiles Tanveer spinning Shekupura Model textile Lahore Silver line Bahawal pur Fazal textile Muzafarghar

And some of its supplier’s quality certification is as follow

1. Arshad textiles

We believe quality is not just 'aesthetics,' it is perfection to all parameters involved during manufacturing, bringing with it a product of quality to the end user.

We at Arshad Textile Company combine Quality, Perfection and Timing for our customers to suit their convenience.

Arshad Textile Company believes in teamwork to build bridges with all our customers.( www.arshadtextile.com)

2. Master textiles

(www.master.com.pk)

3. Fazal textile Muzafarghar: We believe that in textiles, Quality means “Best Raw Material”, “State of the art

Machinery” & “Highly Trained and Skilled Human Resources”.

The Quality Management at our Mills believes in implementation of all three.

(www.fazaltextile.com/html/quality)

4.2 Retailers and Distributors: Fareena Dying Master textile Lahore Mushtaq cor. Karachi Parcom Holding Karachi Sadia Fabrics Karachi Salmon taxtile Cills corporations Karachi

5.0 TQM driven customer relations:

TQM driven customer relationship glimpse the company competitiveness so what the

company is doing for customer retention and new customer attraction and along with side

the loyalty and partnering with house accounts. So there are some customer

driven TQM priorities are as follows.

5.1 Customer perception:The customers are given the priority and the yarn is also manufactured on the demand of

the customers and quality also maintained according the customers requirements. When

we talk to the employees of the Redco then they have told us that they have the core

value to continue Growth through creation of sustainable relationships with our

customers.

5.2 Customer satisfaction:They also mentioned that the customer satisfaction for textile sector carries great

importance like the customer satisfaction for other sectors. Especially, if it is considered

that gaining new customers create four times more costs than protecting existing

customers from leaving, it can be seen that the customer satisfaction plays a great role for

the firms. Customer satisfaction is chosen as brand image, perceived service quality and

perceived and product quality. It is very necessary to make sure that right products are

available as and when customers want them is key to customer loyalty.

5.3 Is customer the king?Most industries today have already squeezed as much revenue as possible from efficient

production and transaction processes and specifically the customer experience. As

mentioned above the customers are given the priority. The total customer experience is

the sum of every interaction the customer has with an organization, from first contact

through after-sales support

Total customer experience = customer's product experience + customer's

transaction experience + customer's interaction experience

Of these factors, the product experience is the most fundamental. Is the product or service

excellent? Does it meet or exceed customer needs. These entire things have been

considered by the Redco textiles to meet the customer need and requirement. So that’s

why in Redco textile the customers has been given the king position and material

is manufactured by considering the customers perception and the quality standers.

6.0 Business process & TQM Concepts:The whole process of the business is very well established and customer oriented. The

material is manufactured on the demand and requirement of the customers. Theirs need

and quality is at top priority. Though the TQM concepts which we have studies in our

subject is not totally implemented but somehow they are implemented like quality checks

during the process, but health and safety issue are not properly handled. Even there is

supply chain management. But employee motivation and appraisal of employee is

adopted somehow.

6.1 Communication:Communication is key to a strong business relationship and this can be the relationship

between business and customer and equally important for the internal relationships

among different employees within the company.

The communication is not so good in the Redco textile. At some places the

communication and feedback is improved but ignored at some places. Basically it was the

downward communication in the Redco textile which is not an appropriate kind of the

communication. And employees have a lot of idea and they are not allowed to share them

with the middle or top management. Some employees have been worked for a very long

time and they know a lot about the improvements but they are not supposed to share that

idea with management. So it is a drawback there.

6.2 Feedback:The feedback system is adopted somehow but in the Redco textile there is not a changing

trend of the demand because here the coloring and designing etc is not performed but

about quality the feedback from the customer has been taken from time to time but not on

the regular basis because the Redco group is quality oriented and on the other hand in

website comments and feedback is also not gathered from existing customers and other

potential customers.

6.3 Employee involvement and satisfaction:The employee satisfaction in any organization depends on no. of variables like

wage rate, work place environment, work life balance compensation for hazardous duty

etc. In the Redco textiles the overall satisfaction of blue collar employees is low because

the wages paid to them are barely enough to cover the basic needs and the work place

environment is hazardous there is no strict policy regarding safety measures for

employees like breathing mask ear muff etc. is enforced. The wages do not increased

with the passage of time. The white collar employees are satisfied up to some extent. The

employee involvement is minimal in the decision making because there is no trend of

upward communication.

7.0 TQM awareness & Implementation:The whole process of the Redco textile from spinning to Weaving is organized in a

quality oriented some TQM concepts are adopted in detail but some are ignored

completely. There are Quality checks during the process, but health and security issue are

not suitably managed. Even there is supply chain management. But employee impulse

and appraisal of employee is implemented up to some extent.

7.1 Who is involved? :

In Redco textiles mission statement it is focus to create a quality culture and

continuous improvements, company top management is very much responsive to the

quality element in all the operations and state of the art machines in both spinning and

weaving units has been installed to insure quality output. Company is an ISO 9001:2000

certified which is a QMS. Redco has its own power generation plant worth US$

1,000,000 which was installed in 2007 using state of the art GE-Jenbacher (European) 1

Megawatt gas Engines x 4 Nos. Although company is well aware of the quality aspect for

the international trade but the implementations to those standards in daily production and

operations are inadequate. The unsecure working environment, the unconformities in

processes and the low employee awareness about quality and continuous improvement

shows that quality is not the culture in Redco textile operations

7.2 Who leads the Process?Top management determines the process and the policy which is based on the current

industry analysis. The decision team include the CEO of the company director ,general

manager and the front line managers which compose it a vertical company. In two units

of spinning and weaving general manger who leads the shift managers in both the

departments are responsible of quality with the help of quality assurance manager.

7.3 What is the USP The most color observing fabrics The strength of thread Customized designs

UAP best quality looms state of the art spindles Quality thread Client list

7.4 What employees feel about TQM standards?In Redco textile the employees are only feel the quality in the prospective of the

customer, they think quality is what which we are supposed to provide to our client.

Employees are not trained about the quality of the processes in which they are working,

Occupational health, sound working environment they are not cultured to think

about it. The attitude among the employees is very casual. No one follow the rules and

regulations of the company. Some implementation is done among the executives but not

at managerial level. HR Department is almost useless and only performing two activities.

These activities are making salaries and attendance of the employees and workers. They

are not working to train the employees and making appraisals to evaluate them. Quality

standards are not communicated to front level employees to make a holistic quality

culture.

7.5 TQM certification?

Increasing rivalry has been making companies more aware of quality to better sell their

products and services. Top management of REDCO is also striving for to improve their

quality processes company is certified as ISO 9001:2000 which are the general process

quality standards, these standards communicate to improve processes under measuring

the following steps.

1-Customer relation process

2-Leadership process

3-Resource management

4-Process improvement

5-Management system

6-continuoul improvement system

7-taking of factual decisions

8- Relationship with Suppliers.

Redco certified body is United Registrar of Systems entered Pakistan in 1996 to provide

world class certification services to leading corporations. Since its inception, United

Registrar of Systems, has maintained its top quality service and auditing standards across

all sectors many well known companies like 3m, ICI Pakistan, Engro Asahi Johnson &

Johnson, Pakistan State Oil, Reckitt & Benckiser, 3M Pakistan, Pak Arab

Refinery Limited. The company cover the following step to certified certain operations.

Once your management system is fully documented and has been operating for at least 3

months you may then proceed with registration. The eight steps to certification are

outlined below along with the costs:

Steps involved to get URS ISO 9001 Certification

Step 1

Complete the Enquiry / Application Form (Please click on the link to go to the form) then

submit form to your local office.

Step 2

Once URS have received your Enquiry / Application form we shall send you a Core

Questionnaire for completion.

Step 3

On receipt of the completed questionnaire a formal quotation will be sent to client.

Step 4

If client find URS quotation is acceptable, please sign it and return it to your local office.

Step 5

We will arrange and conduct an on-site document and readiness review. URS will leave a

copy of our report with any findings with you and if satisfactory arrange a mutually

convenient date for the on-site audit.

Step 6

URS conduct an on-site audit once it is agreed that you are ready to move forward. We

produce a report on the findings plus recommendations. Unsuccessful audits may require

a re-audit.

Step 7

The Certificate of Registration is issued, once all points, if any, have been addressed from

the on-site audit.

Step 8

Surveillance visits are performed at least once a year but may be more frequent,

depending on the size of your company.

Notes: An informal (but chargeable) pre-audit visit may be requested to determine

readiness for formal assessment.

7.6 What tools & Techniques they use to ensure qualityRaw Cotton Quality control&. Fabric Inspection and Quality Control:

For quality assurance Redco management use different tools and techniques in both the spinning and weaving units.this process starts form the procurement of the raw cotton form the supplier,in this process the cotton examine with the fibrograpah which tells the quality and the capacity of certain to make a quality thread and in the next step stello meter is used to measure the number of twist per threads .in another process herriness machine is used to check the extra fiber in yarn ,after that the astmmic grade is used to check the strength of the yarn with the defined strength of the thread. After quality check this report send to the production manager to start the production according to those standards,

7.7 Health & safety Like the most of other industries in textiles there is a lot of health hazards for the

employees, the worker in Redco textile are not getting the basic health and safety

assurance in both spinning and weaving units, company has not yet implemented the

OHSAS 18001

in both the spinning and weaving the process from the plucking of cotton bales ,and the

to the end process of packing the employees were in the routine dress and there were no

safety measure were implemented ,although the sign boards were placed in different

processes to take precautionary measure during the shifts, but the over all atmosphere of

working was unsecured and the manpower was working without the mask and

helmet ,only a dispenser was hired for the first aid which shows the top management is

least concern about the health and safety standards in Redco.

8.0 Our Findings

8.1 Analysis1. Redco textile is a well equipped textile unit in which the top management is

well concern about quality but they are failed to create a quality culture2. Redco is centralized type of the organization which is an obstacle to adopt

and maintaine the quality process. 3. There is a strategic communication gap between the top to middle

management4. Technology is not yet implemented and still most of the work in manual5. Company only use the slogan of the ISO 9001-2000 for the marketing

purpose

6. Top management look at quality in the prospective of final product and least interested to bring quality in the overall processes.

7. Internal customer satisfaction is not considered.8. Redco is not implemented the OHSAS standards to insure the health and

safety of their employees9. There is a lack of leadership in the middle management and the improvement10. Quality representatives are not well aware of the quality standards and they

only consider the quality in the customer and the final product view.11. There are nonconformities in both the spinning and weaving units12. Unhealthy environment13. Employees are not motivated with appraisals and rewards14. High cost production which minimize the profit margin.

8.1 Suggestion and Recommendation:

1-Redco first of all review their qulaity policy and focus on the quality process not only

the final quality prduct.

2-External customer satisfaction through internal customer satisfaction

3-Redco ought to implement OHSAS to increse the loyalty of their internal customer

4-Redco should go for ERP solution to better evaluate the process and to communicate

the qulaity measure and to better check the daily productivity and final quality of the

product.

5-There is a strong need of leadership to work in teams and to establish a quality culture.

6- Quality representatives should be empowered with hilgh technolgy and measuring

tools to examine the processes and to update themselves with the customer quality

requirements

7- Involvement of the emplyees can be enhanced by extre benefits and empowerment in

decersion making.

8- labour laws should be prevailed properly so that they can be provided with health

environment.