PROJECT OF TOTAL QUALITY MANAGEMENT

SESSION (2010-2014) PROGRAM

MASTERS IN BUSINESS ADMINSTRATION

SUBMITTED TO: MISS MADIHA RIAZ SUBMITTED BY:

M.FARMAN WAQAS AHMAD WASEEMSHAHZAD UMAR FAROOQ

ROLL # 101 ROLL # 125 ROLL # 154 ROLL # 156

DEPARTMENT OF BUSINESS ADMINISTRATION

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Table of Contents:
1 2 Executive Summary The importance of water Nestle 3 4 5 6 7 8 9 10 11 12 13 Industry Overview and History of Nestle Nestle in Pakistan Vision, Mission and Products Definition of Quality by Nestle Quality Assurance Department Responsibilities Administration Quality Assurance Coordinator and Lab Analysts Quality Circle Feedback and Types of teams Continuous Process input and ADSA Cycle Khush Aab 14 15 16 17 18 19 20 Introduction and History Quality Provide by Khush Aab, Vision, Mission, Process and Competitive Advantage Product Availability Quality Assurance by Khush Aab Recommendations Bibliography 13 14 14 15 15 16 17 8 9 10 11 12 5 5 6 7 8 4 4

DEDICATION
We would like to dedicate this project to our parents and to our respected teacher who give us a chance to work on this project.

ACKNOWLEDGEMENT
We are thankful to Almighty ALLAH most beneficent and the most Merciful Who made us able to complete our given project successfully and for giving us much cooperation and supporting parents who has given us this opportunity to study here. we would like to thank Madam Madiha Riaz for giving us the confidence and opportunity to prove ourselves.

EXECUTIVE SUMMARY
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The current millennium has unfolded new business rules most the significant of them being that company has to constantly look into minds of the customer. Customer loyalty plays a significant role and today securing that loyalty requires quality right price and of course last but not the least i.e. creating awareness about their service. As a trainee, we were given knowledge about the way and style of their working, their routine and their environment. It was a great experience in getting under such a reputed company, which has in it the ability to retain customer.

THE IMPORTANCE OF WATER

Although a person can live without food for several days, a person can live without water for just a few days. At normal activity levels, you lose 2-3 cups of water a day in perspiration. But during an hour of vigorous exercise, you sweat out approximately a quart of water. Water plays a vital role in regulating your body temperature at a perfect 98.6degrees, delivering nutrients and oxygen to cells, removing waste, cushioning joints and protecting organs and tissues. Up to 60% of your body is water. Your brain is 75% water, blood is 82% and lungs are nearly 90% water. Water ranks first as the single most abundant substance in the human body. Next to oxygen, water is your bodys most important nutrient

Nestle:

Industry overview:
In Pakistan there was no concept of water bottles, even no one ever thought of getting in a business of water. The perception was, who will buy a bottle of water, when its free everywhere. But Nestle was the first company, who made a plan to launch a Pure water with the name NESTLE pure life. They launched Nestle pure life in 1988. There are many competitors in the market now including Local companies and MNCs, who are in this business now. Major companies in this industry are Kinley, AquaFina , and Nestle.

History of Nestle:
Nestle began in Switzerland in the mid 1860s when founder Henri Nestle created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henris product was a carefully formulated mixture of cows milk, flour and sugar. Nestles first product was called Farine Lacte (corn flour gruel in French) Henri Nestle. The product was first used on a premature baby who could not tolerate his mothers milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henris new formula and it provided the nourishment that saved his life. Within a few years the first Nestle product was marketed in Europe.

Nestle in Pakistan:
Nestle has been serving Pakistani consumers since 1988, when parent company, the Switzerland-based Nestle SA, first acquired a share in Milkman Ltd. Today Nestle is fully integrated in Pakistani life, and is recognized as the producer of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which they operate. Nestle Pakistan ensures that their products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestle philosophy, and there aim is to bring products to peoples doorsteps. Now Nestle is the biggest market leader in Water Industry of Pakistan, they have built their name in water sector with the strongest brand name Nestle Pure Life. They have gain the trust of public in a way, that even they can buy a product of Nestle anywhere in the country. They have the biggest market share in Water Industry of Pakistan, according to them they are selling Quality and that is their competitive edge.

Mission Statement:
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At Nestle, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to nutrition, health and wellness, Nestle products bring consumers the vital ingredients of taste and pleasure.

Vision and Strategy:

The Nestle global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestle Pakistan subscribes fully to this vision. In particular, we envision to:

Meet the nutritional needs of consumers of all age groups from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. Lead a dynamic motivated professional workforce proud of its heritage and bullish about the future

Products:

Milk pack Nescafe Nestle Pure Life Cerelac Maggi Noodles Millo

Hierarchy of Nestle Pakistan:

CEO

Human resource departme nt

Quality assurance departmen t

Finance departme nt

Productio n departme nt

Engineeri ng departme nt

Supply chain departme nt

Definition of Quality by Nestle:

TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Quality in business, engineering and manufacturing has a pragmatic interpretation as the non-inferiority or superiority of something. Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace. In manufacturing, a measure of excellence or a state of being free from defects, deficiencies, and significant variations, brought about by the strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies specific customer or user requirements. Every Organization has its own definition of quality. Nestle defined quality as The corner stone for success and the satisfaction of the customers. They relate the word quality with the stage on which customer is satisfied and they say that if the customers are fully satisfied with their products then it is quality. They also say that consistency in their products defines the quality.

Quality Assurance Department:

In order to build quality into the culture a quality council is established to provide overall direction, it is the driver for the TQM engine. In typical organizations, the council is composed of the CEO, the senior managers of the functional areas such as design, marketing, finance, production and quality and a coordinator or consultant.

Hierarchy of Quality Assurance Department:

Quality Manager Market

Quality Assurance Coordinator

Analyst (L1)

Analyst (L2)

Analyst (L3)

Responsibilities:
Administration
The Quality Manager is responsible for the administration of the Quality Plan and has the authority to manage all work affecting quality. The Quality Manager will provide leadership for the development, implementation, communication and maintenance of quality system policies and procedures for the Company according to the approved quality system. A primary goal is to achieve a high degree of joint ownership of quality and compliance strategies with all of the major operational stakeholders in the Company while addressing regulatory requirements in an effective, timely and responsible manner. Quality Manager Market is the head of Quality Assurance Department. The responsibility of quality manager is to monitor overall performance of the quality department. He insures that every task within the quality department is going in the right direction. He calls upon the meeting of whole team on weekly or monthly basis.

Quality Assurance Coordinator:

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The responsibilities of Quality Assurance Coordinator are to assigns, reviews, and the work of professional, technical, and clerical staff. Interprets and implements quality assurance standards. To monitor unusual occurrences, report follow-up procedures, and report monthly and year-to-date comparisons. To assist the director with records form revisions and procedures. Reviews of quality assurance standards, studies existing policies and procedures, and interviews personnel and customers to evaluate effectiveness of quality assurance program. He is responsible for achieving a satisfactory working environment between other departments performing quality-assurance studies. Another major responsibility of QA is to ensure that the product quality should remain consistent and there should be no compromise on the quality of the product, so there is no compromise on cost for this department.

Lab analysts:
Under the QA Coordinator there are three lab analysts. The responsibility is to check the quality of minerals by applying different international methods on them in the laboratory. Before sending the product into market the lab analysts check the eminence and then illuminate it. To measure the analytical skills of analysts, some blind samples came from the main laboratory which is in Switzerland. The analysts have to test these samples and then conclude their results. On the basis of these results the analysts are graded, and from the last five years these analysts are getting, A grade in this performance test.

Quality Circle:
There are three steps in quality circle; 1. KPI (Key Performance Indicator) 2. PPI (Process Performance Indicator) 3. Drivers

A key performance indicator (KPI) is a specific measure of an organization's performance in some area of its business. It is a very general concept, with different implementations depending on the type of business and goals of the organization. In Nestle upper level managers or team leaders are using KPIs. They made the policies, rules and
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regulations for assigning the tasks to employees and keeping them in right direction. These are basically the tasks of the upper level management. For example; machine checking, training of employees, monitoring, setting sales targets E.T.C.

Process Performance Indicator is used by the plant managers. Plant managers direct and coordinate plant operations within company policies and procedures. Maintain a clean and safe plant. Establish and direct plant policies and procedures. They are responsible for plant production goals. Establish and maintain a positive community relationship. Conduct employee performance reviews. Plant managers used PPIs to ensure that there should be no gap in manufacturing process and everything is going smoothly. They direct the workers to different tasks. Plant manager calls upon the meeting with the upper level management and discuss the current issues.

Drivers are used by workers. Workers are actually implementing the rules which are designed by the upper level management. If there is any issue during the manufacturing process, the workers immediately report to the plant manager. Plant manager checks the level of the issue, if the issue is out of his capacity; he schedules a meeting with the upper level management.

Feedback:
In Nestle they take both internal as well as external feedback. Internal Feedback: The upper level management involves the employees in the brain storming session for creating ideas or solving problems. The meeting is on the quarterly basis and it also known as NCE (Nestle Continuous Excellence). Employees are free to share their ideas with the management. The ideas are then evaluated, short listed and accepted on the basis of their significance. There are thirty guidelines for quality in nestle, so there are thirty different documents for it. External Feedback:
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Nestle take the feedback from customers on monthly basis. The call centers are created for this purpose and they have the phone numbers of all of their customers in their data base. Another technique is used to avoid the biasness in taking the feedback, the call center of Karachi calls the customers of Islamabad and the call center of Islamabad calls the customers of Karachi.

Types of Teams:
1. Process improvement team 2. Cross functional team In Nestle they are working in two types of team: In process improvement team the members represents the each operation of the process. Usually the scope of the teams activity is limited to the work unit. We can take example of the returnable bottles. The quality department is responsible for the intense cleaning of these bottles. So this is the issue of quality department and they have to do this work within their team. This issue is not in relevance to other departments. In Cross Functional Team there are 6 to 10 members will represent a no. of different functional areas such as Engineering, Production etc. In Nestle, they are also using the cross functional teams but it depends upon the nature of the product. We can take example of a project of Nestle in which they have extract a limited water from well to make their environment safe. In this project they were using cross functional teams which is formed by different department members.

Continuous Process Improvement: Quality is a never ending quest and Continuous Process Improvement (CPI) is a never ending effort to discover and eliminate the main causes of problems. PDSA Cycle: Nestle strongly rely on PDSA cycle for solving several of its problems. A PDSA cycle is a system for continuously improving environmental management systems. Following this cycle, Nestle will Plan (set environmental policies and targets for itself and create a plan to achieve them), Do (put the plan into practice), Study (check the results and make corrections) and Act (make revisions and improvements for the next step in the cycle).

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KHUSH AAB MIERAL WATER

Introduction of Mineral Water (Khush Aab) A Quality Product of UOS
In Pakistan more than 80% population has not been provided clean drinking water, due to which many diseases related to water are in higher percentage as compared to other nations. In Sargodha region the underground water is highly polluted due to down flow of salts from the Salt Range as well as other minerals in that area. It is the reason that the maximum percentage of patients at Sargodha are suffering from kidney diseases as well as lever problems. Keeping in view the situation, a project was launched to provide safe and healthy drinking water with the name Khush Aab to the community. For the purpose reverse osmoses plant has been installed from which water obtained is being treated with ozone gas and then mixing of essential.
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History:
The idea of this water plant was given by Dr. Saeed in 2006 and 2007. The basic reason is that the mountains around Sargodha have calcium carbonate in them, because, of this, underground water is contaminated. The university started this project, they thought, they could carry it out with the available resources. It is situated in University of Sargodha, and it is a department of Pharmaceutical industry, and it is designed to install formulation of Pharmaceutical industry in 2008. In 2010 a separate building allotted for this department, and it is takeover by Prof. M. Athar in 2010. Rs. 30 million funds have been allocated for this project, from which the equipments of Rs. 15 million were purchased. In Dec, 2010 Khush Aab was launched after the permission of respected V.C. In 2011 A good response get from the market, and now khush Aab produce 600 liter per hour. If we come to the legal aspect of it, this plant is in Khushab and they have the registration of it. In the main Sargodha no one has the registration certificate.

Quality provide by Khush Aab:

They have taken Nestles as their inspiration as they were the first ones to start this business. They have tried to reach the standard of water that they provide and they have succeeded. 1. Fit for health. 2. Bacteria free. 3. Having good minerals that are not harmful for body.

Vision:
We provide safe and healthy water for the community.

Mission Statement

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To earn customer loyalty by meeting the customers needs with quality products.

Process:
Now they use little bit manual system but after some period they totally convert their system full automatically. They use batch process. Each batch consists of 2000 liters.

Competitive Advantage:
Meet high quality standard and provide at a reduce price.

Product Availability:

In University their product is available in all canteens, and for faculty they provide it to each department. They have made it available in the Model Pharmacy for general public. And after 6 months they will provide their product all over the city. Lot of companies are coming to them for its distribution in Sargodha, Khushab and Mianwali. People are coming from Mianwali and asking for its distribution.

Quality Assurance:
They have their own typical standards. And they have a technical committee, who inspect the quality.

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Recommendations for Khush Aab for applying TQM:

1. Develop, with input from all personal, the core values, vision statement, mission statement, and quality policy statement. 2. Develop the strategic long term plan with goals and the annual quality improvement program with objectives. 3. Determine and continually monitor the cost of the poor quality. 4. Continually determine those projects that improve the process, particularly those that affect external and internal customer satisfaction. 5. Establish multi-functional project and departmental or work group teams and monitor their progress. 6. Applying Quality circle 7. Getting feedback from both internal and external customers. 8. Top management commitment and support for quality improvement.
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9. Creating a production oriented total quality culture. 10. Creating a Customer-oriented manufacturing environment. 11. Improving participation and teamwork 12. Prevention of errors at source. 13. Respect for humanity. 14. Recongnition and reward for improvement efforts 15. Apply Tools for Quality Control: Cheek Sheet Histogram Scatter Diagram

Cause-and-effect diagram Control Charts Pareto Chart

Mineral Water Plant

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Bibliography:
Prof. Muhammad Athar (Plant Manager) Mr. Tariq (Assist. Plant Manager)

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