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Course Code: OPR-614J Course Title: Total Quality Management

Course Instructor: Mr. Jagjit Singh

Academic Task: Term Paper Academic Task Title: Quality Practices

Date of Allotment: April 3rd, 2017 Date of Submission: March 25th,2017

Students Roll No: RQ1202A35 Students Reg. No: 11203656

Evaluation Parameters: Quality practices followed by ITC, Competitor Analysis,Future Growth
and Strategies and Success Mantra

Learning Outcomes: Different quality practices which a company follows.

How used quality practice is effective for our company.
Competitor Analysis for the same.
Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other
students work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written form by any other person.
Students Signature: Sagar Kapoor

Evaluators comments (For Instructors use only)

General Observations Suggestions For Improvements Best Part of Assignment

EvaluatorsSignatureand Date:

Marks Obtained: Max.Marks:

ITC Limited:

ITC was incorporated on August 24, 1910 under the

name Imperial Tobacco Company of India
Limited. As the Company's ownership
progressively Indianised, the name of the Company
was changed to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. ITC
rules various and huge market segments in India.
ITC Limited has set its foot in various categories
present in the market.
ITC Limited is Indian conglomerate which works in
five segments:

FMCG (Fast Moving Consumer Goods): comprising Foods, Personal Care, Cigarettes
and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and
Safety Matches
Hotels
Paperboards and Specialty Papers
Packaging
Agri Business and Information Technology

Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies
witnessed the beginnings of a corporate transformation that would usher in momentous
changes in the life of the Company. In the current scenario, ITC employs over 22,000 people
at more than 60 locations across India. The Company continuously endeavors to enhance its
wealth generating capabilities in a globalizing environment to consistently reward more than
3,74,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations.ITC is one of India's foremost private sector companies with a market
capitalization of nearly US $ 8 billion and a turnover of over US $ 4.75 billion.
Quality Practices:
Of ITC Ltd.
Quality is the essential pre-requisite for gaining and maintaining sustained competitive
advantage and market presence in an interconnected world where goods are sourced from
around the world. Through safety, performance, reliability and sustainability, quality is
critical to export success. Growth of priority sectors and trade depends to a very large extent
on quality. Enterprises with sound quality management are likely to be more innovative.
Quality affects functions across the enterprise: It has implications throughout the operations
of a business, from strategy vis--vis competitors, market selection, sourcing, packaging, to
marketing and branding and plays a major role in growth and value addition.
The key quality practices in Total Quality Management are:
Leadership
Knowledge and Process Management
Training (performance Metrics)
Customer Focus
Strategic Planning
Continuous Improvements

1. Leadership: Leaders in a TQM system view the firm as a system; support employee
development; establish a multipoint communication among the employees, managers, and
customers; and use information efficiently and effectively. In addition, leaders encourage
employee participation in decision-making and empower the employees. Top
management commitment and participation in TQM practices are the most important
factors for the success of TQM practices. Managers should demonstrate more leadership
than traditional management behaviors to increase employees awareness of quality
activities in TQM adoption and practices.
In ITC Ltd. the top management stays in contact with its employees and works for
their betterment. Their leadership qualities have successfully improved ITCs
operational performance, inventory management performance, employee
performance, financial performance, social responsibility and hence forth attaining
customer results.
2. Knowledge and Process Management: Effective knowledge management ensures
that employees obtain timely reliable, consistent, accurate, and necessary data and
information as they need to do their job effectively and efficiently in the firm.
Only in this way, the expected benefits from TQM practices can be achieved.
Process management emphasizes activities, as opposed to results, through a set of
methodological and behavioral activities. It includes preventive and proactive
approaches to quality management to reduce variations in the process and improve
the quality of the product. Knowledge and successful process management
practices monitor data on quality to manage processes effectively. Effective
knowledge and process management design minimize the negative effects on the
environment. Furthermore, as the processes become prevention oriented, costs are
reduced and profit of the firm increases.
ITC Ltd. has improvedin inventory management performance, innovation
performance, attained competitive advantage, financial performance and overall firm
performance.
Knowledge and Process management has helped to improve the turnover rate of
purchased materials and inventory. Errors or mistakes in the processes are also figured
out and corrected on time. The processes are improved by means of controlling the
processes periodically and monitoring data on quality continuously.

3. Training: Training means providing knowledge to employees regarding new technologies

which the organization will be going to implement in future, so that the employee gets better
hands on those new technologies and also he/she can easily work on it.
ITC Ltd. gives necessary training to all their employees to improve their proficiencies in their
tasks. Effective training in management and improvement in quality brings success for the
firm. Employees effective knowledge and learning capability provides sustainability of
quality management in the firm. Quality does not begin in one department or function; it is
the responsibility of the whole firm. ITC Ltd. provides training to all its employees based on
the results of the training needs assessment.
With effective training, employees know the industry and the structure of the company. In
addition, effective training improves employees loyalty to the firm, motivation, and work
performance.

If employees are trained on producing reliable and high quality products and/or services, their
full participation in the production stage would be more fruitful. Thus, customer satisfaction
will increase and customer complaints will reduce.

This training has positivelyhas led to better operational performance, employee performance,
innovation performance, customer results and aggregate firm performance.

4. Customer Focus: Customer focus means that a company should maintain the customer
relationship by identifying and fulfilling their needs and expectations.
They first should know the customers expectations and requirements and then should offer
the products/services, accordingly. By the aid of successful customer focus efforts,
production can be arranged with respect to the customers needs, expectations, and
complaints. This encourages ITC Ltd. to produce high quality and reliable products/services
on time with increased efficiency and productivity. When customer expectations are met,
their satisfaction will be increased, and the companys sales and the market share will
increase.And by applying consistently high standards, company is able to do things right first
time, cut waste, reduce costs and drive profitability.
Customer focus has a very positive impact on the operational performance, inventory
management performance, customer satisfaction/results, tremendous sales, and aggregate
firm performance of ITC Ltd.

5. Supplier Quality Management: Supply chain management in TQM implies reducing

and streamlining the supplier base to facilitate managing supplier relationships,
developing strategic alliances with suppliers, working with suppliers to ensure that
expectations are met, and involving suppliers early in the product development
process to take advantage of their capabilities and expertise. ITCs all products are
dependent on the raw materials availability, so for that they need to have better
relations with the suppliers in order to deliver these products in the market to the
consumers.
Effective supply management practices enable the suppliers to adopt quality
management and deliver reliable and high quality products and/or services timely.

Having supplier quality management has led to better operational performance,

inventory management performance, innovation performance, financial
performanceand overall firm performance.

6.) Strategic Quality Planning: Strategic quality planning includes vision, mission, and
values of the firms. They are formed by taking into account the quality concept. With
effective strategic quality planning efforts employees are taken as an input in
developing the vision, mission, strategies and objectives. This facilitates acceptance
and support of strategic quality plans by the employees.

The procedures and Operations of ITC Ltd. are continually assessed and developed to meet
the highest of standards. ITC Lts. Is an ISO certifies company:
ISO: 9001 Quality
ISO: 14001 Environment
BS OHSAS 18001 Health and Safety
This strategic quality planning is positively associated with operational performance,
inventory management performance, society results, and market performance.

Of Hindustan Unilever Ltd.

Every company follows their own quality practice in their premises for attaining best quality
in their product and services.
1.) Customer Focus:To win consumers confidence and loyalty, HUL consistently
delivers branded products of excellent quality. HUL keeps in mind the different needs of
consumers and customers and strive to develop and deliver superior brands to ensure that
theyre the preferred choice. The Quality Practice describes the principles that everyone in
Unilever follows, wherever they are in the world, to ensure that they are recognized and
trusted for their integrity, the quality of their brands and products, and the high standards that
are set.
2.) Strategic Quality Planning: They have stringent mandatory quality standards in
place against which compliance is verified through regular audits and self assessments.These
 standards ensure the design, manufacture and supply products that are safe, of excellent
quality, and conform to the relevant industry and regulatory standards in the countries in
which HULs operate.Quality and consumer safety is the responsibility of every Unilever
employee and Unilever demonstrates visible and consistent leadership to meet this policy.
3.) Maintaining Stakeholder Partnership: HUL partners with stakeholders to provide
leadership, promote transparency and share best practice. And haveforged effective working
relationships with suppliers and contract manufacturers. Maintaining this relationship is
important for the company as it effects the brand development, manufacturing and customer
service processes of the company.

Future Growth & Strategies of ITC Ltd.

ITC has a simple but clear purpose to make sustainable living commonplace.
ITC is developing new business practices that grow their company and communities, meeting
peoples ever-increasing desire for more sustainable products and creating a brighter future
for everyone. ITC is helping to build a world where everyone lives well and within the
natural limits of the planet:

Brands that offer balanced nutrition, good hygiene and the confidence that comes from
having clean clothes, clean hair and good skin.
Products which are sustainably sourced and used in a way which protects the earths natural
resources.
Respect for the rights of the people and communities ITC works with throughout the world.
ITC is leveraging their global reach to engage consumers: which is their global initiative to
motivate millions of people to live sustainably by taking small, everyday actions that make a
big difference to the world.

ITC has invested around Rs. 500 crores on its non-tobacco businesses. That is slated to climb
to around Rs.2,000 in the next five years. As much as Rs.800 crores will be spent to build up
the InfoTech business. ITC has already made significant investments to web-enable the
Indian farmer.
ITCs web plan for the farmer, christened `e-Choupal, is about populating Indias
agricultural villages with Internet kiosks. Farmers use this technology infrastructure to access
on-line information from ITCs farmer-friendly websites. By 2020 ITC aims at enhancing the
livelihoods of millions of people as they grow their business.
Success Mantra
ITC is one of those few enterprises in the world that has traverseda 100 year journey and has
yet managed to remain contemporary, relevant and competitive.
ITC's journey, over a century, has indeed been one of the extraordinary transformation - from
a small outpost of an overseas-owned company with a single product to one of India's most
valuable and admired multi-dimensional and multi-business enterprises.
In the last four decades, ITC's topline grew from Rs. 145 crores in 1970 to over Rs. 48,000
crores in 2014, profit after tax soared from Rs. 4 crores to cross Rs. 8,700 crores and market
capitalization catapulted from around Rs. 35 crores to more than Rs. 2,75,000 crores.
Without a doubt, it was a series of visionary CEOs who led ITC at different points of time in
its history.Company has been growing and is still growing in every aspect.

ITCs success mantra is Putting consumers and customers at the heart of their business. ITC
actively engage their consumers and customers, translating their needs and requirements into
the products and services, thus creating consumer value wherever they position theirproducts.
This is at the very heart of their innovation process.

ITC proactively and continuously is developing their systems and processes to ensure quality
and safety throughout the whole value chain, and are setting a benchmark for the business.
ITC provides appropriate training and resources, and ensures that it deliverstheir quality
objectives and targets. ITC regularly measures and improvestheir performance using both
internal and external measures.