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Report Submitted to Faculty of Management and Administrative Sciences in Partial Fulfillment of Requirements for the Degree of Masters of Business Administration
Submitted By:
M. Jahanzaib Abu Sufyan Luqman Ahmed M. shahid 11022720-028 11022720-035 11022720-019 11022720-008
UNIVERSITY OF GUJRAT
Date of Submission 06/06/2013
Name of Program Coordinator: Mr. Mohsin Raza Signature of Program Coordinator: ____________________
Dedication We dedicate this project to our parents and teachers whose prayers and knowledge helped us in the completion of this project
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Acknowledgement
Thanks to almighty Allah for enabling us to fulfill all the requirements for the completion of our project report. It would not be a justice in presenting this report without mentioning the people around us who have been inextricably related with the completion of this report. For assisting us in all respect and regard to complete this report our warm thanks to our teacher Sir Mohsin Raza , who enriched us knowledge with wealth led ideas to pursue and power of writing this report. It could not have been possible to accomplish this report without his thoughtful guidance and expertise and thanks to the General Manager of BOSS Mr. Imran Gul and General Manager of Citizen Mr. Mustansar Hussain who provided us all the necessary information for our report. Finally for all possible errors, omissions and shortcomings in writing of this report only we are responsible for which we hope that all concerning regards of this report will forgive us.
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Executive Summary
We are students of MBA (Hones) in University of Gujrat in 4th semester and weve offered a subject named Total Quality Management and our assigned instructor for this subject is Sir Mohsin Raza. We received a project to benchmark any area of the BOSS and we have selected Management System for benchmarking with its competitor CITIZEN The purpose of this study is to improve our knowledge and skill by comparing two organizations and suggest a better plan. When we compare the hierarchy of both organizations there is main gap in the hierarchy. In CITIZEN proper designations are not assigned, there is no departmentalization. We have made some suggestions for the removal of this gap; limitations are also constraints in implementation of these suggestions.
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Table of Contents
Final Project .................................................................................................................................................. 1 ON ................................................................................................................................................................. 1 [Management of BOSS & Citizen] ............................................................................................................... 1 Dedication ..................................................................................................................................................... 2 Acknowledgement ........................................................................................................................................ 3 Executive Summary ...................................................................................................................................... 4 Introduction of the organization .................................................................................................................... 8 Introduction of the organizations business sector: ....................................................................................... 9 Importance of this sector for country ...................................................................................................... 10 List of competitors .................................................................................................................................. 10 Ranking of competitors ........................................................................................................................... 11 1.3 Background of the project: .................................................................................................................... 12 1.3.1 System Flow chat of Products........................................................................................................ 13 Order process .......................................................................................................................................... 14 1.3.2 Past history highlights: ................................................................................................................... 14 1.3.2 Hierarchy chart............................................................................................................................... 14 Chapter 2 ..................................................................................................................................................... 15 2. Preparation and Planning ........................................................................................................................ 15 Determine processes to be benchmarked .................................................................................................... 15 2.2.1 Short term and long term objective ................................................................................................ 15 2.2.2 Area Required for Improvement .................................................................................................... 16 Major and minor improvement ........................................................................................................... 16 Determine the affordable change: ........................................................................................................... 17 2.2.5 Critical performance measure ........................................................................................................ 17 Quality................................................................................................................................................. 17 Cost ..................................................................................................................................................... 17 Price of product ................................................................................................................................... 18 Distribution channel ............................................................................................................................ 18 2.3 Determine of organization benchmarked .......................................................................................... 18 Chapter 3 ..................................................................................................................................................... 19 Study of Benchmarking Partner .................................................................................................................. 19 Introduction of the benchmarked organization ........................................................................................... 19
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Chapter 1 Introduction
This project has given us by Sir Mohsin Raza instructor of TQM (Total Quality Management). The topic of this project is to Benchmark any department of BOSS and weve selected Management System of BOSS. In this we will to study the whole department and its operations performing under the General Manager.. We will benchmark in this project Management system of CITIZEN with the Management system of BOSS. After that we will be able to find the strengths, threats, weaknesses and opportunities for CITIZEN and the area of the department which require improvement to compete with other competitors. ie. Venus, Indus, Super Asia. Total quality management it is process of gaining long term benefits, sustaining position in the market among competitors through customer`s satisfaction internally and externally. Internal customers are employees of the organization; they are satisfied through healthy salary, motivation, adequate training facilities and finch benefits. External customers are satisfied through quality products according to their requirements. As mention above it is the process of long term revelry among the competitors. Several researches shows firms those have a adopted this approach, brings positive change in their performance. Firms develop a benchmark among its competitors, compare its performance with its benchmarking partners and enhance its performance through customer`s satisfaction.
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Total Quality Management Vision Statement Our vision to save nature Mission Statement Our mission to provide moulded furniture to his customer with modern technology which create long term relation with customer. Critical success factors High quality of products Items range Latest technology Importance of the organization for the region Save nature High living standard Low price Employment opportunities
Total Quality Management (plastic deformation)when strained beyond a certain point. Aluminum which is stamped or forged, for instance, exhibits plasticity in this sense, but is not plastic in the common sense; in contrast, in their finished forms, some plastics will break before deforming and therefore are not plastic in the technical sense. There are two types of plastics: thermoplastics and thermosetting polymers. Importance of this sector for country Importance of this sector for country Increase in foreign exchange Increase in per capita income Increase in GDP Save nature Batter living standard of people Increase in Govt. revenue Employment opportunity List of competitors Super Asia Group +92-55-4272801 Super Asia Muhammad Din Sons Limited: G.T. Road, Gujranwala, Pakistan Super Asia Group was founded in 1975 by Mian Muhammad Din at a very small level. Today, it is a conglomerate of companies with diversified range of businesses including; Home Appliances Automobiles Insulation and Packing Materials Fast Food Burger. Apple steel and plastic furniture industry +92-55-3256951Ashraf Engineering Works, Saharan Street, Mohallah Sultan Mahmood, Khokharki, Sialkot Road, Gujranwala Adding Luxury to Life We are working in the field of Steel Plastic Furniture since 1999 and providing superior quality steel frames to the major industry players, for example, BOSS Moulded Furniture, VENUS Plastic Furniture, TOYO Furniture and other.
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Total Quality Management Unique Global Industries +92-55-4232382By Pas Road, Near Nawab Chowk, Mughal State, Gujranwala Unique Global Furniture established in 2005. We produce high class furniture both in plastic and steel materials. We started production of high grade plastic accessories in 2009. Today Unique Global Furniture is recognized as one of the renowned plastic moulded furniture in the area. Al-Madina Plastic Industry: +92-55-3892425Mandiala More, Near Jahangir Marriage Hall, Gulshan Colony, G.T Road, Gujranwala, Punjab Pakistan Haider Electrical Industry +92-55-3255257Plot No 51-A, Small Industrial Estate No 1, G.T Road, Gujranwala, Pakistan Categories: Washing Machines & Dryers Wholesale & Manufacturers Style plastic furniture +92-333-3393000 Climaxabad, G.T Road, Gujranwala, Pakistan A-one plastic industry +92-55-4232558Street Darbar Qadria, Hafizabad Road, Gujranwala Categories: Office Furniture & Equipment Retail, Office Furniture & Equipment M... Toyo Group of Industries +92-55-111805805Small Industrial Estate No 2, Near Khaiali by Pass, Gujranwala, Pakistan Ranking of competitors Toyo Group of Industries Super Asia Group Apple steel and plastic furniture industry Unique Global Industries Al-Madina Plastic Industry Haider Electrical Industry Style plastic furniture A-one plastic industry
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PURCHASE OF RAW MATERIAL STORE THE RAW MATERAIL TRANSFER TO THE PRODUCTION
TRANSFER INTO FINISHED GOODS
SALE
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Order process Purchase department pass the order to supplier to purchase the raw material. After the purchase of raw material from supplier store it into the raw material store room. Payment of raw material is made by cash or cheques. Almost all the purchase is made on cash basis however some time it may be on credit bases. This main process is handled by the purchase department manager. The purchase department transfer raw material to manufacturing department and manufacturing department after converting raw material into finished goods transfer to sale department. Past history highlights: Positive and negative incidents in the past once we receive order of furniture from Afghanistan Rs. 30 million. In order to fulfill this order we manage the organization with great hard work. Employees come on holidays and we completed this order in one month and for store we hire the ware house. This is the positive and a big opportunity for the organization. Negative incidents are that once one employee cut his two fingers. The whole treatment expenses are beard by the organization and fully leave payment was given to the employee. Hierarchy chart
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Chapter 2
Preparation and Planning Determine processes to be benchmarked
We make decision for selecting bench mark organization following point must be keep in mind during taking decision Employee relation Customer service Export their product Relation with supplier Production process security Facilitated and allowance to employee Departmentalization Quality of products Price of product Line of product Distribution channel Job security Implement government policies Above following point are considering during making decision to select on organization as bench mark. All above point much affect the success of any business. If on organization give weigh that point then it must be run forward success customer are the major factors that push your business toward success or failure. If your internal and external customer is satisfy with your behavior then this organization achieved their short term as well as long term objective. Short term and long term objective we are working on the management of the two firm which related to plastic all the department which are operate in the organization must be controlled and managed by the management. So our focus are not on specific department but on the whole management its short term objective is to run the business smoothly and growth and its long term objective to compete the potential
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Total Quality Management capture the market attract the potential customer create good relation with employee and retain relation with supplied and run the business toward. Area Required for Improvement It is not doubt that nothing is perfect in this world. Something beyond the perfectness and something near the perfectness. If our benchmark organization rethinks about its system, it must be getting benefit of rethinking. Our benchmark organizations compete the market well and also capture the external customer. System of the organization is good but need to improvement by changing its polices and strategy. A big change are not comes in the business but narrow change comes because this business already control and manage its business well. Major and minor improvement Change in the organization may be minor or major. We are discussed these change one by one as follow Minor change Organization may bring minor change day by day ordinary to requirement if customer and market. The change in quality is a minor change which is above by organization to compete competitor. The physical change also bring for attract customer. Better facilitate after sale and a number of distributors channel minor change. We can summarize this discussion by following point that is called minor change in the plastic industry. Quality change Price change Shape of product change A number of distribution channels Good raw material Recruitment
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Total Quality Management Major change If organization want to take risk and bring large change in the organization is called major change. Major changes are not bringing in the organization day by day but occur after huge period of time. This change much effects the organization. If company make a strategy to export finished good or import raw material from certain country is called major change. Following are some major changes. Departmentalization Export the finished goods Make strategy to import raw material Change the location of organization Change the capital structure Determine the affordable change: Change is available in everywhere changing may bring result negative or positive plastic industry sector is a sector where there are many opportunity to bring change because people are turn toward plastic goods from wood product. Not huge resources are required to bring change but we bring change by nominal or average resources. This sector directly related to living standard of people. You target the people living standard change must be according to people or customer mind. Critical performance measure Quality Quality play on important role in success of on organization without provide the quality goods and organization not earn profit. People prefer or much conscious about the quality an organization that provides quality goods in a industry must be rapidly growth then other company. Quality provider organization have a greater opportunity of success. Cost An organization who minimized their cost and no doubt that it charged low price from customer and earn more profit due to low cost. Cost is the major factor that effect the organization during selecting the price of product performance of the organization is can measure by the cost. Faculty of Management Sciences
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Total Quality Management Price of product In modern era, everyone knows about the product quality and price. Customers are well aware about the competitor of the certain firm. In a competitor age price is a major factor to attract the potential customer performance of the organization is also can measure by the price of product Distribution channel If an organization provide the distribution channel near a customer demand, then customer become the loyal customer due to distribution channel advertisement of certain firm is also made. Customer must be easily purchase the product of the company performance of firm is measure of distribution channel condition. Determine of organization benchmarked There are many firm which are operate is a plastic industry from these firm selecting benchmarked organization. We must well know about firm and why we are not takes these organizations as benchmarked organization. These are the firm as follow Super Asia Toyo A-one industry Unique plastic industry Al-Madina Plastic Industry Haider Electrical Industry Style plastic furniture
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Chapter 3
Study of Benchmarking Partner Introduction of the benchmarked organization
Pakson International Plastic Industry was founded in 1991, and has been working to produce high quality Moulded Furniture and households. The brand name of Pakson Industries in Pakistan is BOSS. Over the years BOSS has earned great respect in markets all over the country. The company strictly keeps the image of a sovereign brand and honesty as its priority. The company has clear goals which states the complete well coordinated molded furniture, plastic steel furniture & households etc. The statement clearly shows that the company keeps it employees motivated towards providing high quality products. Pakson International Plastic Industry (BOSS) has supreme and professional services, policies of competitive prices, strict quality control and regular delivery is the cause of its success. Pakson International Plastic Industry (BOSS) did it, thanks to the brand name BOSS which consistently kept capturing our nerves for designing and producing only the best. Credit goes to its valued customers who appreciated BOSS products and opted to buy value for their money. From the choice of raw materials 100% Pure Furniture Grade Resin production system to a rigorous quality control procedure and in accord to international standard, so that BOSS products has achieved the quality that fulfill the high stated standards
Main office
PAKSON INTERNATIONAL PLASTIC INDUSTRIES Address: 49-A, S.I.E. No.1, Gujranwala, Pakistan. Tel:+92-55-3842891 ~ 7 (7-Lines) Fax: +92-55-3250167 Email:
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Vision statement
We provide our customers with value added plastic furniture; we present excellent customer services and are enhancing peoples lives.
Mission statement
To provide quality products & services to the complete satisfaction of our customers and maximize results for all stakeholder through optimal use of resources. To focus on personal development of our Human Resources to meet future challenges To promote good governance, corporate values and social responsibility
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Why we select boss as benchmarking partner BOSS is conducting business on large scale. There are many number of departments in the BOSS plastic industry. It has individual marketing, finance, human resource, sale, production, account, internal audit, repair, supply chain, import and export, institutional sale, administrative, research and development. These all department perform their duties and do work with responsibility. They report the public about their financial reports. In short BOSS is doing business on large scale like a company and on the other hand CITIZEN is doing business on small scale like a factory. Original research-would yield optimal results. Original research yield optimal results as the individual or group personally observe the situation. With the help of interview and personally observation the researcher can get more results. While researcher interviews from any representative of the organization the presenter of the organization tells everything to the researcher and in this way there is no confusion in the information which is obtained from the representative.
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Total Quality Management Appropriate contact person of benchmarked organization We met MR. IMRAN GULL the general manager of the BOSS plastic industry. He completed his ACMA degree in 1999. He has 13 year experience in this field. He handled the meetings on behalf of Director. He provides us everything about the organization and fully satisfies the information which he gave us. Checklist of topics to be covered Quality of product Price of product Cost of goods Distribution channel After sale service Employee relation Supplier relation
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newspaper Add
Receive C.V
Interview
Selection
Training
Job Appointment
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Critical performance measures of benchmarking partner Quality BOSS is famous to deliver quality goods to his customer people who quality conscious must be purchase boss products. So we take or select BOSS as benchmark organization due to his quality goods. Now people are well educated so prefer quality goods than cheaper goods. Price Price of BOSS is high than it competitor but it capture the market share. Customers of the BOSS industry are loyal. They always and in every price want to purchase and used BOSS goods due to his quality. Price its competitor also like citizen is also high but not more than BOSS. Sale Services BOSS also provides the facility to redeem their old product into new product with some charges. BOSS is the firm who provide better facilitate to his customer during and after the purchase of good. These factors much affect the performance of organization. Departmentalization Every department does his work separately. So the result of management is reliable and accurate. Every one well knows about his duties and his authority. BOSS Establish and manage different department like human resources, marketing, finance, sale purchase, quality inspection repaid and research and development department.
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Departmentalization
There is a lack of departmentalization in CITIZEN international pvt. LTD as compared to BOSS. There is no proper designation assigned in CITIZEN, due to lack of departmentalization performance of organization is realy affected.
Recruitment
In CITIZEN no proper method of recruitment is adopted, they consult with their tax advisor firm SAJJAD & CO. and they deliver their internees for services without knowing that he/she is eligible for the job or not. After all the ultimate effect of wrong recruitment is poor performance of the organization.
Financial position
Financial position of the CITIZEN is week from BOSS, BOSS totally relay on equity base capital and they have further investment for portfolio whereas the competing organization doesn`t have enough financial assets to meet its needs.
Marketing promotion
CITIZEN`s promotional and marketing efforts are to week, there is lack of political sensitivity in the organization. There are no tv, news paper or pamphlets of the firm, often contracts are granted to other competitors due political wings. Faculty of Management Sciences
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Chapter 5
Develop Action Plan for Implementation
For eliminating the gap the organization have to take several steps as follows: Develop the departmentalization and assigned the duties to every eligible person. Directors should participate actively Exports should be increase Recruitment should be on merit and eligibility Proper training and motivational facilities should be provided Financial management should improved, debts should be taken from banks Marketing and promotional activities should enhance Advertising should be more in news papers, tv etc. Political sensitivity should enhance of the organization.
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Recommendations
The firm is a model of excellence itself and has been awarded many times for its services and quality goods. But there is always a room for betterment in everything. For the firm I would recommend: The company does not pay much attention towards the HR department. Most of the decision making authority lies in the hands of Managing Directors. I concluded that in the organization the departments are not working satisfactory therefore there should be a proper integration between all departments. In the organization there is lake of education therefore company should introduce workshops to train their employees. For selection of price and new consumers need, company must conduct survey.
The organization has weak culture. The organization must establish the strong corporate culture if it want to makes it progress better. At the end I would conclude that it was a great experience working with Pakson International Plastic Industry. I learned a lot of new things and got to the practical exposure. One thing I would conclude that as I have done a corporate internship for the first time I got to know that the work the organizations took from us was not worthy for the organization. They just took our suggestion and kept on testing our knowledge
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6.3: Limitations
Following are the limitations that we face during the preparation of our project. Time constraint Time constraint is the problem that we faced in completion of our project. We had limited time for our project to complete and also we didnt have enough time to personally visit BOSS Plastic industry. Reference letter Due to delay in issuance of reference letter we were late to visit in the organization, and in hurry we went to visit Friday the weekend day in Gujranwala industrial sector. Response from organization Although, being the reference letter have been issued to us but the respondents were feeling hesitation in sharing information with us, hardly we convince them.
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Bibliography
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