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GROUP ASSIGNMENT
Quality Management System of the Harischandra PLC
DONE BY:
Ranasinghe N.P.
HDUGC-G-1146
Jayasuriya S.C.
HDUGC-G-1126
Kodithuwakku K.A.P.P.
HDUGC-G-1127
Guruge G.P.G.C.S.
HDUGC-G-1123
Dilki J.K.I
HDUGC-G-1118
Anupama M.G.T.
HDUGC-G-1132
HAND IN DATE:
LECTURER :
HDBM 2208
WORD COUNT:
5054
We declare that all materials included in this report is the end result of our own work
and that due acknowledgement have been given in the bibliography and references to
all sources be they printed, electronic or personal
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Acknowledgement
Apart from the efforts of us, the success of any project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express our
gratitude to the people who have been instrumental in the successful completion of
this project.
We wish to express our deep sincere of gratitude to our Quality Management lecturers
Ms Pavithra Wickramasuriya and Mr. H.H.L Amarasinghe, for their kind co-operation
and encouragement which help us in completion of this project. Without their
encouragement and guidance this project would not have materialized.
The guidance and support received from all the members who contributed and who
are contributing to this project, was vital for the success of the project. We are grateful
for their constant support and help.
Finally, an honorable mention goes to our families and friends for their
understandings and supports on us in completing this project. Without helps of the
particular that mentioned above, we would face many difficulties while doing this
project.
Finally, we are responsible for any errors that remain in this report.
Content
Executive summary...
Company Profile...
Third Generation..
Product Portfolio...
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15
16
19
21
24
Conclusion..............
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Recommendations... 28
Appendix................. 30
Executive summary
Quality management systems (QMS) are functional assessment methods used by
executive management to review several aspects of a company. QMS helps determine
how well the company operates across different departments and if improvements are
needed in certain company operations. While QMS may be implemented in different
ways among industries, the fundamental concepts are the same.
This report shows how quality management practices happen in a selected company
and we selected Harsichandra PLC for the study.
The founder of Harischandra Mills, C.A Harischandra returned to his village in
Matara after graduating from the University of Colombo in 1938, to start a business
venture on his own. Investing his entire fortune of Rs 500 on a rice mill he began a
business which gradually became one of the premier food manufacturing companies
in the island.
He set up the Harischandra Mills Company in 1943 with an initial capital of
Rs.25,000 on a land area of 20 perches and today after 65 years its factory complex
with all modern machinery including fully automated packaging plant has expanded
in a five acre site.
The overall study of this report shows the current quality management practices of
Harsichandra PLC and Recommendations are given in this report where ever it is
necessary for the improvement of the organization
Company Profile
Founder of Harischandra Mills
Name
Date of Birth
School Attended
Strongest Belief
Hobbies
Mr. C A Harischandra
1918
Ananda College, Colombo
Success
through
lots
of
Mr.
Establishment
Initial Capital
Limited liability company
Public quoted company
Harischandra
1944
Rs 500.00
09th January 1953
1983
Head Office
Delkada Road,
Matara.
Colombo Depot
54, Kithulwala Road,
Colombo 08.
Vision
To enhance our heritage brand status and serve the nation
Mission
To provide a public with a variety of high quality foods and soaps.
Success Story
C.A. Harischandra is the founder of one of the premier food manufacturing companies
in the country today, Harischandra Mills Limited.
Situated in the deep South the factory which retains
traditional methods of
The history of the company can be traced back to 1938, when, even though he could
easily have secured a high-paying job in the government service with his degree in
economics from the University of Colombo,
C.A Harischandra returned to his hometown to begin a business on his own.
Investing his entire fortune of Rs. 500 on a rice mill he begins to mill rice for two
cents a bushel. Soon his rivals reduce their milling charges and begin to mill the rice
for one cent a bushel.
Third Generation
Mr. C.A. Harischandra founded Harischandra Mills and today Mr. S.N. Samarasinghe,
grandson of the C.A Harischandra and some of his family members are managing it as
the third generation which is a very rare achievement in the local business arena.
has allocated 40% of its shares to its employees in the same year. In 1983 the
company was listed in the Colombo Stock Exchange. The company has paid a
dividend of Rs 28 per share for the 2009 - 2010 year.
Rs 20 Million
Rs 9.598 Million
Rs.28
No of shares
959,800
No of share holders
322
Rs 425
Product Portfolio
1. Grinding Mill
Following products are 100% coffee, kurakkan or uludu.
1.1 Coffee powder
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2. Laundry Soaps
2.1 Salbar 700g
2.2 Salbar 350g
2.3 Blue washing soap 90g
3. Noodles Products
3.1 Plain noodles
3.2 Kurakkan noodles
3.3 Special noodles
3.4 Rice nooles
4. Papadam Products
4.1 Normal papadam
4.2 Masala papadam
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5. Bakery Products
5.1 Daily products
Bread
Roasted bread
Buns
Cake
Chinese roles
Viyanna roles
Fish buns
5.2 Cakes
Butter cakes
Chocolate cakes
Fruit cakes
Ribbon cakes
Wedding cakes
Date cakes
Mammer cakes
Rich cakes
Butter biscuits
Ginger biscuits
Wine biscuits
Ginger sticks
Murukku
Jubilee biscuits
Baby rusk
Sparts moju
Umbalakada badum
Mixed pickle
Garlic pickle
Caju badum
Chili paste
kolakenda
This is needed to ensure that the required standard is met. Customers will not
be satisfied with the products that have been bought if the quality standards
are not achieved and this could result in complaints and loss of sales.
Meanings of quality
Quality means those features of products that meet customer needs and
thereby provide customer satisfaction. In this sense, the meaning of quality is
oriented to income. The purpose of such higher quality is to provide greater
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management systems improve the quality of the products and services produced,
thereby improving market share, sales growth, sales margins, and competitive
advantage, and helping to avoid litigation. Quality control methods in industrial
production were first developed by statistician W. Edwards Deming; the adoption of
these ideas in postWorld War II Japan led to the production of more reliable goods,
with fewer defects, than those of the United States and Western Europe, spurring the
subsequent global success of many Japanese firms.
The International Organization for Standardization has outlined quality principles and
the procedures for implementing a quality management system in ISO 9000:2000,
ISO 9001:2000 and other documents. These documents have become the gold
standards of best practices for ensuring quality and, in many fields, serve as the basis
for regulation.
An important element of quality assurance is the collection and analysis of data that
measure the quality of the raw materials, components, products, and assembly
processes. Exponent statisticians can help companies comply with ISO 9001
standards by developing good data collection and analysis techniques during the
design, development, and production stages.
Statistical control
Statistical control is a quality control technique that uses mathematics to
uncover the likelihood of product failure. If the probability of failure is
extremely low, than the whole batch of products may be passed off as
acceptable. If there is an indication that based in the sample product, that there
may be a higher probability of failure, the product is re-evaluated and any
errors are corrected. In ideal circumstances the probability of error or defect is
found before the products are produced and the problems are corrected.
Company quality
This quality control technique involves the entire company's participation
when it comes to quality control. This technique is certainly not limited only
to those in the field of manufacturing either. Principles of job management,
adequate processes, performance and integrity criteria and identification of
records as well as competence in areas such as knowledge, skills, experience,
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5s controlling system
5S method like most useful methods has been formed as a part of Toyota
Production System (TPS). TPS is composed as a compact system of methods
improving a company position at the market. 5S method mainly focuses on
production efficiency and products quality. It is based on the basic principle
of effort minimization (e.g. tools movements, movements of worker) during
the work operation at the workplace. A goal of 5S method is to decrease
mistakes and loss incurred with
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Successful TPM is a group effort where the entire organization works together to
maintain and improve the equipment. One of the first steps in implementing TPM is
forming teams that are empowered to improve the process. Flattening the
organizational structure enables teams to address issues when they have the greatest
impact - when they occur.
As employees join TPM teams, operators are trained to perform routine maintenance
items and assume an ownership role. Employees empowered to affect the process will
typically be in a position to identify and create process improvements that would have
normally been overlooked by management. An on-going refactoring of the process
provides a method to implement improvements.
Six-Sigma
Six Sigma is a great tool for driving difficult process problems back to their root causes. It
uses process-analysis techniques and a broad application of statistics to determine the
process inputs that cause the under-sired outputs. Minimizing the variation of
inputs produces a more consistent product or service. Six Sigma is designed to
provide breakthrough results, whereas the results from Lean improvements are bit
by bit. Six Sigma is the best tool for fixing stubborn, its-always-been-this-way
problems.
However, it isnt the right tool for every difficult situation. Six Sigma techniques take
time to work their magic. You should apply it only after other quality techniques, such
as Lean, have removed the waste and clutter from process.
These are the major quality control tools we can identify in modern industry. In
Harischandra company they use TQM (Total Quality Maintainece) control
management systems for their process. because they trying to get zero defects from
their production.
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Inco
ming Inspection
I
n Process Inspection
Final Inspection
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Incoming
Inspection Process
Chart
1) In Process Inspection
Even today Harischandra PLC still keeps their good will in highest place
because they follow better in process quality control methods for their products during
the production process. Most quality problems may be occurred during production
process. This is why In-Process Quality Control is much important. So In-process
quality control provides a cost efficient and effective method to prevent large scale
mistakes. Here are some major quality control methods that Harischandra Company
fallows during their production.
1.
2.
3.
4.
5S system
Total product maintains system
Quality control Circle
Daily inspection
5S method
Mainly this method defines how to organize a work space for efficiency and
effectiveness by identifying and storing the items used, maintaining the area and
items, and sustaining the new order. Harischandara Company fallows 5S system for
their production process. They maintain good environment with their organization and
maximum efficiency from their resources using by 5S. Even in the office they use
specific labeling system to work easily. They use specific racking systems for store
finished items. When the first time they recruit person for the job they give special
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training programme for the every employer. After the practicing 5S module they
check and audit their activities in process control. To identify the improvement of
their works they use sticker systems for notice the current situation.
For the get maximum contribution from their working staff they use quality control
circle. Through QCC they get information from the employees and get opinions
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decisions about the top management levels. QCC methods help to solve problems in
cost, delivery problem, and safety problem and increase moral within an organization.
In a modern day Harischandra company gives training facilities for their employees
and give opportunities for participate to top management decisions to motivate current
employees they introduce new rewarding schemes for the lower level employees.
From all of these means and ways, they try to give good and quality product for their
customers by satisfying them. In every year they give a cash prize and award for the
best employer in the organization. As a production based company this QCC tools
helps company keep in a stable position.
2) Final Inspection
There are four main processes that can affect the quality of the final products of
Harishchandra PLC.
They are,
1. Handling
2. Storage
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3. Packaging
4. Preservation
Handling
From the moment raw ingredients are received from the supplier, they have to be
handled. The last part of the production is to pack the product. This is done by
automatically system with the help of man power. Hrishchandra PLC has implement
automatically packaging system in order to minimize employees handling activities. It
helps to improve quality of the final product.
Storage
Some product need to be put into safe, cool or hot storage as soon as possible after
delivery. Harishchandra PLC maintains the temperature of the storage according to
product nature.Once the food and other products have been processed, Harishchandra
PLC stored them before being packed. Because of it may need to be cooled down
quickly to prevent bacteria multiplying. Other goods, such as tins, do not need to be
dealt with at once as the contents are well protected and they can have a shelf life of
up to two years.
Packaging
Some products are packed directly after manufacture. Harishchandra PLC uses an
automated process to do this activity. Packaging is used to protect the quality and
condition of the product, and to give the customer information about the contents. If
the correct packaging is not used, the products could get damaged in transit to the
customer.
Harishchandra PLC use following type of packaging for their products
Foil trays
A cardboard lid is crimped onto a pre-made aluminium foil tray.
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Eg:
Coffee powder
Bottling
Eg:
Sparts moju
Umbalakada badum
Mixed pickle
Garlic pickle
Caju badum
Chili paste
kolakenda
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Conclusion
According to the researching and analyzing of the Harishchandra PLC, We have come
to know that the company is performing well when they are in QM practices. Because
of they use three specific quality control processes during their production process
such as Incoming Inspection, In Process Inspection and Final Inspection.
As a result of implementing those quality control methods effectively, Harischandra
PLC has able to become ISO 9001 certified for their soap products and then the
company is offered by SLAS certificate for their food products.
Though company performs well when they are in QM practices, we have identified
some weaknesses in the QM practices of the company. We believe that the company
should make correct these weaknesses for their future success.
The company has able to become ISO 9001 certified for only their soap products and
therefore they should try to get this certificate for their other products too. Also with
the aim of keeping high quality of the product Harischandra PLC most probably tend
to use manual system for their production process. But we believe that it is not
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advisable for current market situation and to be more effective and efficient, the
company should implement new technology for their production process.
By using manual methods and new technology together the company will be able to
meet more quality standards and objectives of the company.
Recommendations
Get more Quality Standards for the Food products
The company reputation increased when get more rewards and standards. This
company had only achieved the ISO 9001 and SLS certificate. The competitors of this
company have got certificates than Harischandra PLC. To get the customer loyalty the
company has to get more standards. So they have to follow the instructions according
to achieve the different standards.
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References
http://wikipedia.com
http://investopedia.com
http://netmba.com
Harishchandra PLC Annual reports
SLS guideline Books
HACCP quality guideline book
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