A PROJECT ON QUALITY

MANAGEMENT AT
CAPARO

SUBMITTED TO:
------------------------

SUBMITTED BY:
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 DECLARATION

I -------------- hereby declare that the project report titled “Quality Management
at Caparo” is my own work and has been carried out by me. All care has been
taken to keep this report error free and I sincerely regret for any unintended
discrepancies that might have crept into this report. I shall be highly obliged if
errors (if any) be brought to my attention.

-----------------------

2
 CERTIFICATE

I ------hereby certify that -------, Student at------------------- has completed the

Project on “Quality Management at Caparo”, under my guidance.

-----------------------

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 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those

who have contributed significantly by sharing their knowledge and
experience in the completion of this project work.
I am greatly obliged to ----------------------- for providing me the right kind of
opportunity and

facilities to complete this venture.

My first word of gratitude is due to -----------, my industry guide, for her kind help
and support and for his valuable guidance throughout the project.

Finally, I would also like to thank all my dear friends for their kind cooperation,
advice and encouragement during the long and arduous task of preparing this
report and carrying out the project work.

At last but not the least, who are always at the top of my heart, my dear family
members whose blessings, inspiration and encouragement have resulted in the
successful completion of this project.

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 CONTENTS

Page no.
1. Introduction 6
2. Research Methodology
10
3. Characteristics of TQM. 12

4. Fundamental Elements of TQM 13

5. Classification of TQM 14

6. Guideline to Improve Product Quality 31

7. Dr W. Edward Deming's 14 Principles 39

8. DMAIC Six Sigma approach 42

9. Advantages of TQM 48

10. Caparo at a glimpse 52

11. Recommendations and suggestions 73

12. Limitations of the study 74

13. Bibliography 75

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 1.Introduction of Total Quality Management

Although the concept of quality is very old, today it is perhaps the major
preoccupation of organization world-wide. However, in the recent years, Total
Quality Management (TQM) has captured the world-wide attention and is being
adopted in many organizations, both profit & non-profit. TQM is being accepted
as a management philosophy. Many organizations around the globe are
conduction Organizational Development (OD) programmes to enhance quality
awareness and change the attitudes of their employees. These efforts towards
understandings, adopting and promoting TQM are primarily because of the
changes taking place in the global economy, changing market conditions and
customer’s expectations and increasing competitive pressure. Many large
organizations have recognized the important contributions that TQM can make in
dealing with these challenges.

The objectives of this chapter it to trace the evolution of TQM as a

general philosophy and a set of paradigms. Attempt is also made to discuss the
significant contributions of various pioneering promoters of TQM philosophy
towards the design, development and application of TQM systems. Various
definitions and models of TQM are also outlined is this chapter to have a
preliminary but fundamental grasp over the subject.

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MEANING OF TQM

TQM, thus, can be considered as being constituted of two composite elements

namely Quality Management meaning that aspect of the overall function that
determines and implements the quality policy ; and Quality Systems meaning the
collective plans, activities and events that are provided to ensure that a product,
Process or service will satisfy given needs.

TQM means many things to many organization. It has evolved itself to be

associated more often with statistical tools and process control, than with a method
of management. In its essential sense, TQM is a means of operating a business that
seeks to maximize an organization’s value through maximizing customer
satisfaction at the lowest possible cost and is achieved by continuously improving
all processes within the organization and collaborating with people.

Total Quality Management is thus based on the concepts and philosophies

advocated by Juran, Deming, Crossby, and Feigenbaum. Conceptually, TQM
emphasizes on:

 Top management commitment and support for quality improvement.

 Creating a production oriented total quality culture.

 Creating a Customer-oriented manufacturing environment.

 Improving participation and teamwork

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  Prevention of errors at source.

 Respect for humanity.

 Recongnition and reward for improvement efforts.

QUALITY DEFINED

‘Quality’ though familiar to everyone has a variety of uses and

meanings. The classic perception of quality is the position of a product attitude on
a good-bad scale. Most people associate it with defects in products. However,
quality relates not only to the product but also to the instruction for its use, to
installations, to service, to marketing and so on. Quality has been defined in
various ways, Some of the important definitions of quality are presented below :

1. Quality is fitness for use (Juran, 1974).

2. Quality is conformance to requirements (Crossby, 1984).

3. Quality means The actual use and the selling price of the product
(Feigenbaum, 1961).

4. Quality is the capability composite of products or services to knowingly

satisfy those preconceived composite wants of the user(s) that are
intelligently related to the characteristics of performance, and do
not cause major overt or convert reaction or actions by other
people. (Johnson, 1987).

5. The Totality of features and characteristics of products or services that bears on

its ability to satisfy given needs (ANSI & ASAC, 1978).

` Quality is, thus, both a user-oriented and a production-oriented expression. From

the user’s point of view, quality is an expression of the products/services usefulness
in meeting the needs and expectations and its reliability, safety, durability and so
on. From the production point of view, the quality of a product is measured by the
quality of its performance which depends on the quality of design and the quality
of conformance. Quality of design is concerned with the stringency of the
specifications for manufacturing the product. The quality of conformance is

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 concerned with how well the manufactured product conforms to the original
requirements.

Different views of quality are held by marketing, engineering and manufacturing

departments. Garvin (1988) outlines these as :

 Transcendent – Qualtiy as a Simple analyzable property recognized only

though experience.

 Product based – Quality as a precise and measurable variable.

 User based – ‘Quality lies in the eyes of the beholder’

 Manufacturing based – Quality as conformance to the requirements.

 Value based – Quality as performance or conformance at acceptable price or cost.

Quality, therefore, is

defined by the customers.

a measure of achievement of customer satisfaction.

fulfilling the customer’s needs/requirements.

value for money.

keeping one’s word.

ensuring no defects.

image of the company and customer confidence in the

organisaton.

a precise and measuring variable.

utility to the society.

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2.RESEARCH AND HYPOTHESIS/PROBLEM DEFINITION

In todays world the quality is most important thing for any body. Because its
quality that makes the difference between each other. For managing the quality
there are so many technique and tools has been developed. This is an step to
understand and recommend the most active tools for quality management

1. OBJECTIVE OF RESEARCH PROJECT

I have undertaken the project quality mangement in order to learn and study the
quality management technique.

At the beginning of the century, social life was mostly local. It was followed by a
period in which commodities were produced on a mass scale. There were no any
tolls for quality checking most of the firm were competing each other on the basis
of low price distribution. But now a days we cann’t get the work done only on the
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basis of the Price. So the main objective of this project is to understand and
analyse the implemenatation of the quality management technique at various
organization

RESEARCH DESIGN

Research is the systematic and objective identification, collection,

analysis, discrimination, and use of information for the purpose of
improving decision making related to the identification and solution of
problem with respect to marketing.

3. SAMPLING & DATA COLLECTION

• SAMPLING

A sample is a part of population from which the desired information is taken. The
sample should be representative of the population and the information obtained
must be reliable. In any survey where reliability is desired, the error and variances
have to be controlled, measured and interpreted. Its not possible to analyse all the
organization in india which has implementated the quality management technique
at their organization that’s why a few company will be selected to analyse their
quality management.
• DATA COLLECTION METHOD

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 1. Primary Sources: a questionnaire has been developed to know the management
thinking about quality management.

2. Secondary Data:
Secondary Data is collected from the web site and the company’s publication

3.CHARACTERISTICS OF TQM:

The Characteristics of TQM, as revealed from the above definitions and models are as
follows:

1. TQM is customer oriented.

2. TQM requires a long term commitment for continuous improvement of all processes.

3. The success of TQM demands the leadership of top management and continuous
involvement.

4. Responsibility for establishment and improvement of system lies with the

management of an organisation.

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5. TQM is a strategy for continuously improving performance at all levels and in all
areas of responsibility.

4.FOLLOWING AS THE FOUNDATIONAL ELEMENTS OF

TQM.

1. People: TQM aims at empowering people so as to accomplish optimal business

results through teamwork. This involves training that focusses on communication
skills, interactive skills and effective meeting skills. Such training enables people
to be actively involved in the continuous improvement of products and processes
and leads to improved teamwork.

2. Continuous improvement: It involves the fundamental principle of quality, the

Daming cycle and th4e PDCA (Plan, Do, Check, Action) cycle. The iteration of
cycle is the never ending pursuit of excellence.

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3. Process : The use of problem solving process as a guide to analyze a problem,
choose a solution, develop an action plan and evaluate implementation results ; and
the use of quality improvement process for reducing customer requirements to a
specification and specification to a defined work process so as to focus attention on
the customer and customer requirements.
4. Customer: TQM’s primary focus is the customer and customer satisfaction.
Customer perceptions of quality that correlates with customer’s satisfaction are
expected quality, satisfying quality, delightful quality, indifferent quality and
reverse quality. These must be aimed at to prevent customer dissatisfaction, to
meet customers’ expectations and delighted them.

5.CLASSIFICATION OF TOTAL QUALITY MANAGEMNT

Quality management evolution

Quality management is not a recent phenomenon. Advanced civilizations that supported

the arts and crafts allowed clients to choose goods meeting higher quality standards
than normal goods. In societies where art and craft (and craftsmanship) were valued,
one of the responsibilities of a master craftsman (and similarly for artists) was to lead
their studio, train and supervise the work of their craftsmen and apprentices. The master
craftsman set standards, reviewed the work of others and ordered rework and revision
as necessary. One of the limitations of the craft approach was that relatively few goods
could be produced, on the other hand an advantage was that each item produced could
be individually shaped to suit the client. This craft based approach to quality and the
practices used were major inputs when quality management was created as a
management science.

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During the industrial revolution, the importance of craftsmen was diminished as mass
production and repetitive work practices were instituted. The aim was to produce large
numbers of the same goods. The first proponent in the US for this approach was Eli
Whitney who proposed (interchangeable) parts manufacture for muskets, hence
producing the identical components and creating a musket assembly line. The next step
forward was promoted by several people including Frederick Winslow Taylor a
mechanical engineer who sought to improve industrial efficiency. He is sometimes
called "the father of scientific management." He was one of the intellectual leaders of
the Efficiency Movement and part of his approach laid a further foundation for quality
management, including aspects like standardization and adopting improved practices.
Henry Ford also was important in bringing process and quality management practices
into operation in his assembly lines. In Germany, Karl Friedrich Benz, often called the
inventor of the motor car, was pursuing similar assembly and production practices,
although real mass production was properly initiated in Volkswagen after world war
two. From this period onwards, north American companies focused predominantly upon
production against lower cost with increased efficiency.

Walter A. Shewhart made a major step in the evolution towards quality management by
creating a method for quality control for production, using statistical methods, first
proposed in 1924. This became the foundation for his ongoing work on statistical
quality control. W. Edwards Deming later applied statistical process control methods in
the United States during World War II, thereby successfully improving quality in the
manufacture of munitions and other strategically important products.

Quality leadership from a national perspective has changed over the past five to six
decades. After the second world war, Japan decided to make quality improvement a
national imperative as part of rebuilding their economy, and sought the help of
Shewhart, Deming and Juran, amongst others. W. Edwards Deming championed
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Shewhart's ideas in Japan from 1950 onwards. He is probably best known for his
management philosophy establishing quality, productivity, and competitive position. He
has formulated 14 points of attention for managers, which are a high level abstraction of
many of his deep insights. They should be interpreted by learning and understanding the
deeper insights and include:

• Break down barriers between departments

• Management should learn their responsibilities, and take on leadership
• Improve constantly
• Institute a programme of education and self-improvement

In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low
quality, but over time their quality initiatives began to be successful, with Japan
achieving very high levels of quality in products from the 1970s onward. For example,
Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s
Deming was asked by Ford Motor Company to start a quality initiative after they
realized that they were falling behind Japanese manufacturers. A number of highly
successful quality initiatives have been invented by the Japanese (see for example on
this page: Taguchi, QFD, Toyota Production System. Many of the methods not only
provide techniques but also have associated quality culture aspects (i.e. people factors).
These methods are now adopted by the same western countries that decades earlier
derided Japanese methods.

Customers recognize that quality is an important attribute in products and services.

Suppliers recognize that quality can be an important differentiator between their own
offerings and those of competitors (quality differentiation is also called the quality gap).
In the past two decades this quality gap has been greatly reduced between competitive
products and services. This is partly due to the contracting (also called outsourcing) of

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manufacture to countries like India and China, as well internationalization of trade and
competition. These countries amongst many others have raised their own standards of
quality in order to meet International standards and customer demands. The ISO 9000
series of standards are probably the best known International standards for quality
management.

There are a huge number of books available on quality. In recent times some themes
have become more significant including quality culture, the importance of knowledge
management, and the role of leadership in promoting and achieving high quality.
Disciplines like systems thinking are bringing more holistic approaches to quality so
that people, process and products are considered together rather than independent
factors in quality management.

Quality improvement

There are many methods for quality improvement. These cover product improvement,
process improvement and people based improvement. In the following list are methods
of quality management and techniques that incorporate and drive quality improvement
—

1. ISO 9004:2000 — Guidelines for performance improvement.

2. ISO 15504-4: 2005 — Information technology — Process assessment —
Part 4: Guidance on use for process improvement and process capability
determination.
3. QFD — Quality Function Deployment, also known as the House of Quality
approach.
4. Kaizen — 改 善 , Japanese for change for the better; the common English
usage is continual improvement.

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5. Zero Defect Program — created by NEC Corporation of Japan, based upon
Statistical Process Control and one of the inputs for the inventors of Six Sigma.
6. Six Sigma — 6σ, Six Sigma combines established methods such as
Statistical Process Control, Design of Experiments and FMEA in an overall
framework.
7. PDCA — Plan, Do, Check, Act cycle for quality control purposes. (Six
Sigma's DMAIC method (Design, Measure, Analyze, Improve, Control) may be
viewed as a particular implementation of this.)
8. Quality circle — a group (people oriented) approach to improvement.
9. Taguchi methods — statistical oriented methods including Quality
robustness, Quality loss function and Target specifications.
10. The Toyota Production System — reworked in the west into Lean
Manufacturing.
11. Kansei Engineering — an approach that focuses on capturing customer
emotional feedback about products to drive improvement.
12. TQM — Total Quality Management is a management strategy aimed at
embedding awareness of quality in all organizational processes. First promoted in
Japan with the Deming prize which was adopted and adapted in USA as the
Malcolm Baldrige National Quality Award and in Europe as the European
Foundation for Quality Management award (each with their own variations).
13. TRIZ — meaning "Theory of inventive problem solving"
14. BPR — Business process reengineering, a management approach aiming at
'clean slate' improvements (That is, ignoring existing practices).

Proponents of each approach have sought to improve them as well as apply them to
enterprise types not originally targeted. For example, Six Sigma was designed for

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manufacturing but has spread to service enterprises. Each of these approaches and
methods has met with success but also with failures.

Some of the common differentiators between success and failure include commitment,
knowledge and expertise to guide improvement, scope of change/improvement desired
(Big Bang type changes tend to fail more often compared to smaller changes) and
adaption to enterprise cultures. For example, quality circles do not work well in every
enterprise (and are even discouraged by some managers), and relatively few TQM-
participating enterprises have won the national quality awards.

There has been well publicized failures of BPR, as well as Six Sigma. Enterprises
therefore need to consider carefully which quality improvement methods to adopt, and
certainly should not adopt all those listed here.

It is important not to underestimate the people factors, such as culture, in selecting a

quality improvement approach. Any improvement (change) takes time to implement,
gain acceptance and stabilize as accepted practice. Improvement must allow pauses
between implementing new changes so that the change is stabilized and assessed as a
real improvement, before the next improvement is made (hence continual improvement,
not continuous improvement).

Improvements that change the culture take longer as they have to overcome greater
resistance to change. It is easier and often more effective to work within the existing
cultural boundaries and make small improvements (that is Kaizen) than to make major
transformational changes. Use of Kaizen in Japan was a major reason for the creation of
Japanese industrial and economic strength.

On the other hand, transformational change works best when an enterprise faces a crisis
and needs to make major changes in order to survive. In Japan, the land of Kaizen,

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Carlos Ghosn led a transformational change at Nissan Motor Company which was in a
financial and operational crisis. Well organized quality improvement programs take all
these factors into account when selecting the quality improvement methods.

Quality standards

The International Organization for Standardization (ISO) created the Quality

Management System (QMS) standards in 1987. These were the ISO 9000:1987 series
of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which
were applicable in different types of industries, based on the type of activity or process:
designing, production or service delivery.

The standards have been regularly reviewed every few years by the International
Organization for Standardization. The version in 1994 and was called the ISO
9000:1994 series; comprising of the ISO 9001:1994, 9002:1994 and 9003:1994
versions.

The last revision was in the year 2000 and the series was called ISO 9000:2000 series.
However the ISO 9002 and 9003 standards were integrated and one single certifiable
standard was created under ISO 9001:2000. Since December 2003, ISO 9002 and 9003
standards are not valid, and the organizations previously holding these standards need
to do a transition from the old to the new standards.

The ISO 9004:2000 document gives guidelines for performance improvement over and
above the basic standard (ISO 9001:2000). This standard provides a measurement
framework for improved quality management, similar to and based upon the
measurement framework for process assessment.

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The Quality Management System standards created by ISO are meant to certify the
processes and the system of an organization and not the product or service itself. ISO
9000 standards do not certify the quality of the product or service.

Recently the International Organization for Standardization released a new standard,

ISO 22000, meant for the food industry. This standard covers the values and principles
of ISO 9000 and the HACCP standards. It gives one single integrated standard for the
food industry and is expected to become more popular in the coming years in such
industry.

ISO has a number of standards that support quality management. One group describes
processes (including ISO 12207 & ISO 15288) and another describes process
assessment and improvement ISO 15504.

The Software Engineering Institute has its own process assessment and improvement
methods, called CMMi (Capability Maturity Model — integrated) and IDEAL
respectively.

Business benefits of ISO 14000

This section identifies typical benefits for organizations of implementing ISO 14000
standards.

Most managers will try to avoid pollution that could cost the company a fine for
infringing environmental legislation. But better managers will agree that doing only
just enough to keep the company out of trouble with government inspectors is a rather
weak and reactive approach to business in today's environment-conscious world.

The ISO 14000 standards are practical tools for the manager who is not satisfied with
mere compliance with legislation – which may be perceived as a cost of doing business.
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 They are for the proactive manager with the vision to understand that implementing a
strategic approach can bring return on investment in environment-related measures.

The systematic ISO 14001:2004 approach requires the organization to take a hard look
at all areas where its activities have an environmental impact. And it can lead to
benefits like the following:

 reduced cost of waste management

 savings in consumption of energy and materials
 lower distribution costs
 improved corporate image among regulators, customers and the public
 framework for continual improvement of environmental performance.

The manager who is "too busy managing the business" to listen to good sense about
environmental management could actually be costing the business, instead of achieving
benefits like those above.

Certification

(i) Certification is not a requirement of any of ISO's management system

standards. This section provides a basic understanding of what certification and
related terms mean.
(b) Certification, registration and accreditation

In the context of ISO 9001:2000 or ISO 14001:2004, “certification” refers to the

issuing of written assurance (the certificate) by an independent external body that it has
audited a management system and verified that it conforms to the requirements
specified in the standard.

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“Registration” means that the auditing body then records the certification in its client
register. So, the organization’s management system has been both certified and
registered.

Therefore, in the ISO 9001:2000 or ISO 14001:2004 context, the difference between the
two terms is not significant and both are acceptable for general use. “Certification” is
the term most widely used worldwide, although registration is often preferred in
North America, and the two are used interchangeably.

On the contrary, using “accreditation” as an interchangeable alternative for

certification or registration is a mistake, because it means something different.

In the ISO 9001:2000 or ISO 14001:2004 context, accreditation refers to the formal
recognition by a specialized body – an accreditation body – that a certification body
is competent to carry out ISO 9001:2000 or ISO 14001:2004 certification in specified
business sectors.

In simple terms, accreditation is like certification of the certification body.

Certificates issued by accredited certification bodies may be perceived on the
market as having increased credibility.

Quality terms

• Quality Improvement can be distinguished from Quality Control in that

Quality Improvement is the purposeful change of a process to improve the
reliability of achieving an outcome.
• Quality Control is the ongoing effort to maintain the integrity of a process to
maintain the reliability of achieving an outcome.

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 • Quality Assurance is the planned or systematic actions necessary to provide
enough confidence that a product or service will satisfy the given
requirements for quality.

Implementation of Total Quality Management (TQM)

Total Quality Management is a management approach that originated in the 1950's and
has steadily become more popular since the early 1980's. Total Quality is a description
of the culture, attitude and organization of a company that strives to provide customers
with products and services that satisfy their needs. The culture requires quality in all
aspects of the company's operations, with processes being done right the first time and
defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees

can become involved in the continuous improvement of the production of goods and
services. It is a combination of quality and management tools aimed at increasing
business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company,
Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

The Concept of Continuous Improvement by TQM

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TQM is mainly concerned with continuous improvement in all work, from high level
strategic planning and decision-making, to detailed execution of work elements on the
shop floor. It stems from the belief that mistakes can be avoided and defects can be
prevented. It leads to continuously improving results, in all aspects of work, as a result
of continuously improving capabilities, people, processes, technology and machine
capabilities.

Continuous improvement must deal not only with improving results, but more
importantly with improving capabilities to produce better results in the future. The five
major areas of focus for capability improvement are demand generation, supply
generation, technology, operations and people capability.

A central principle of TQM is that mistakes may be made by people, but most of them
are caused, or at least permitted, by faulty systems and processes. This means that the
root cause of such mistakes can be identified and eliminated, and repetition can be
prevented by changing the process.1

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).

2. Where mistakes can't be absolutely prevented, detecting them early to prevent
them being passed down the value added chain (Inspection at source or by the next
operation).
3. Where mistakes recur, stopping production until the process can be corrected, to
prevent the production of more defects. (Stop in time).

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Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organization's current

reality. Relevant preconditions have to do with the organization's history, its current
needs, precipitating events leading to TQM, and the existing employee quality of
working life. If the current reality does not include important preconditions, TQM
implementation should be delayed until the organization is in a state in which TQM is
likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and

if it has been able to successfully change the way it operates when needed, TQM will be
easier to implement. If an organization has been historically reactive and has no skill at
improving its operating systems, there will be both employee skepticism and a lack of
skilled change agents. If this condition prevails, a comprehensive program of
management and leadership development may be instituted. A management audit is a
good assessment tool to identify current levels of organizational functioning and areas
in need of change. An organization should be basically healthy before beginning TQM.
If it has significant problems such as a very unstable funding base, weak administrative
systems, lack of managerial skill, or poor employee morale, TQM would not be
appropriate.5

However, a certain level of stress is probably desirable to initiate TQM. People need to
feel a need for a change. Kanter (1983) addresses this phenomenon be describing
building blocks which are present in effective organizational change. These forces
include departures from tradition, a crisis or galvanizing event, strategic decisions,

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individual "prime movers," and action vehicles. Departures from tradition are activities,
usually at lower levels of the organization, which occur when entrepreneurs move
outside the normal ways of operating to solve a problem. A crisis, if it is not too
disabling, can also help create a sense of urgency which can mobilize people to act. In
the case of TQM, this may be a funding cut or threat, or demands from consumers or
other stakeholders for improved quality of service. After a crisis, a leader may intervene
strategically by articulating a new vision of the future to help the organization deal with
it. A plan to implement TQM may be such a strategic decision. Such a leader may then
become a prime mover, who takes charge in championing the new idea and showing
others how it will help them get where they want to go. Finally, action vehicles are
needed and mechanisms or structures to enable the change to occur and become
institutionalized.

Process Oriented Management V/S Result Oriented Management:

“Let’s consider this,” said the professor. “How is Process Oriented Management
(PROM) different from Result Oriented Management (ROM)? Is it that in Process
Oriented Management, you don’t bother about the result? No. That is not the case.

Process oriented management is based on the paradigm (mindset) that the

result is the effect of a number of causes, If we concentrate on the causes an ensure that
the causes operate exactly as the way we want to, the result is bound to happen (barring
a random element that is uncontrollable by its very nature, such as major earthquake.)
Since results are bound to happen when the causes are perfected, Process Oriented

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Management recommends that we stop worrying about the result. (Incidentally, the
philosophy of ‘karmanye wadhikaraste ma phaleshu kadachana” implies the same thing;
concentrate on perfecting the causes in the process and the result is bound to come since
the result is bouondto be achieved, we can therefore, forget about it. This philosophy is
often misunderstood as ‘keep working without caring for the result’)

Process oriented management is deeply concerned about the result. An

analogy might help. A student is told “Get good marks, I don’t care how.” What kind of
management is it” Is it good?

Another student is told, “You must get the marks, so find out the correct way
to study, and study with regularity and diligence.” Would this policy work? Which kind
of management would you like to use in your organization? Western management has
gone too far with result oriented management; managers find that they have to produce
result by hook or by crook. Naturally they find that producing result is a marathon
exercise every time.

In Process Oriented Management, you first study the process.

What is the difference between a process and an operation?

A Process is summation of activities such as operations, inspections, delays,

storage, transports, and every thing else that happens between the beginning and the end
of the process. In contrast, an Operation does not include inspection, delays an all the

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other aspects. There are two types operations: ‘Do’ and ‘Make ready’. For instance,
warming up an electric iron till it reaches the desired temperature is a ‘make ready’
operation, while ‘ironing’ is a ‘do’ operation.

There are tow types of activities: Value Adding Activities (VA) and Non
Value Adding Activities (NVA).

By definition, Value Adding Activities are those that add value to product as
seen from the customer’s point of view. All others are Non Value Adding activities.
Even ‘make ready’ operations are NVA’s.

Process oriented management first classifies all activities performed as VA

or NVA and attacks Non Value Adding activities first! This is because if you conduct
actual studies on any process, you are most likely to find that the amount of time spent
of Non Value Adding activities exceeds the amount of time spent of Value Adding
activities.

Typically, result oriented management attacks Value Adding activities and

tries to make them more efficient in the belief that it is only the VA activities that

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matter. They often end up making VA more efficient and losing more than what was
gained because the NVA, that were ignored, increased enormously.

Many companies have increased production rate; simultaneously increasing

inventories (storage, delays and transports). They often find that the bottom line does
not improve; though the production rate has increase. They can’t understand why. Now,
having learned about process oriented management, we can understand the reason”.

We should first have a clear understanding of the entire process in terms of

all those activities, which are ‘Value Adding’ and ‘Non Value Adding’. Normally the
NVA activities are much more in number and the time taken for the NVA activities is
also very large as compared to the VA activities.

The NVA activities should be eliminated be eliminated or mad efficient in

terms of time taken, till they become equivalent to the VA activities in terms of time
taken. Now, both the VA and NVA activities should be simultaneously considered for
improvement.

30
 6.GUIDELINES TO BE FOLLOW TO IMPROVE QUALITY OF
PRODUCT.
This document introduces the eight quality management principles on which the
quality management system standards of the revised ISO 9000:2000 series are based.
These principles can be used by senior management as a framework to guide their
organizations towards improved performance. The principles are derived from the
collective experience and knowledge of the international experts who participate in ISO
Technical Committee ISO/TC 176, Quality management and quality assurance, which
is responsible for developing and maintaining the ISO 9000 standards.

The eight quality management principles are defined in ISO 9000:2000, Quality
management systems Fundamentals and vocabulary, and in ISO 9004:2000, Quality
management systems Guidelines for performance improvements.

This document gives the standardized descriptions of the principles as they appear in
ISO 9000:2000 and ISO 9004:2000. In addition, it provides examples of the benefits
derived from their use and of actions that managers typically take in applying the
principles to improve their organizations' performance.
31
Principle 1: Customer focus

Organizations depend on their customers and therefore should understand

current and future customer needs, should meet customer requirements and strive
to exceed customer expectations.

Key benefits:

 Increased revenue and market share obtained through flexible and fast
responses to market opportunities.
 Increased effectiveness in the use of the organization's resources to enhance
customer satisfaction.
 Improved customer loyalty leading to repeat business.

Applying the principle of customer focus typically leads to:

 Researching and understanding customer needs and expectations.

 Ensuring that the objectives of the organization are linked to customer needs
and expectations.
 Communicating customer needs and expectations throughout the
organization.
 Measuring customer satisfaction and acting on the results.
 Systematically managing customer relationships.
 Ensuring a balanced approach between satisfying customers and other
interested parties (such as owners, employees, suppliers, financiers, local
communities and society as a whole).

32
Principle 2: Leadership

Leaders establish unity of purpose and direction of the organization. They should
create and maintain the internal environment in which people can become fully
involved in achieving the organization's objectives.

Key benefits:

 People will understand and be motivated towards the organization's goals

and objectives.
 Activities are evaluated, aligned and implemented in a unified way.
 Miscommunication between levels of an organization will be minimized.

Applying the principle of leadership typically leads to:

 Considering the needs of all interested parties including customers, owners,

employees, suppliers, financiers, local communities and society as a whole.
 Establishing a clear vision of the organization's future.
 Setting challenging goals and targets.
 Creating and sustaining shared values, fairness and ethical role models at all
levels of the organization.
 Establishing trust and eliminating fear.
 Providing people with the required resources, training and freedom to act
with responsibility and accountability.
 Inspiring, encouraging and recognizing people's contributions.

33
Principle 3: Involvement of people

People at all levels are the essence of an organization and their full involvement
enables their abilities to be used for the organization's benefit.

Key benefits:

 Motivated, committed and involved people within the organization.

 Innovation and creativity in furthering the organization's objectives.
 People being accountable for their own performance.
 People eager to participate in and contribute to continual improvement.

Applying the principle of involvement of people typically leads to:

 People understanding the importance of their contribution and role in the

organization.
 People identifying constraints to their performance.
 People accepting ownership of problems and their responsibility for solving
them.
 People evaluating their performance against their personal goals and
objectives.
 People actively seeking opportunities to enhance their competence,
knowledge and experience.
 People freely sharing knowledge and experience.
 People openly discussing problems and issues.


34
Principle 4: Process approach

A desired result is achieved more efficiently when activities and related resources
are managed as a process.

Key benefits:

 Lower costs and shorter cycle times through effective use of resources.
 Improved, consistent and predictable results.
 Focused and prioritized improvement opportunities.

Applying the principle of process approach typically leads to:

 Systematically defining the activities necessary to obtain a desired result.

 Establishing clear responsibility and accountability for managing key
activities.
 Analysing and measuring of the capability of key activities.
 Identifying the interfaces of key activities within and between the functions
of the organization.
 Focusing on the factors such as resources, methods, and materials that will
improve key activities of the organization.
 Evaluating risks, consequences and impacts of activities on customers,
suppliers and other interested parties.

Principle 5: System approach to management

Identifying, understanding and managing interrelated processes as a system

contributes to the organization's effectiveness and efficiency in achieving its
objectives.

35
Key benefits:

 Integration and alignment of the processes that will best achieve the desired
results.
 Ability to focus effort on the key processes.
 Providing confidence to interested parties as to the consistency,
effectiveness and efficiency of the organization.

Applying the principle of system approach to management typically leads to:

 Structuring a system to achieve the organization's objectives in the most

effective and efficient way.
 Understanding the interdependencies between the processes of the system.
 Structured approaches that harmonize and integrate processes.
 Providing a better understanding of the roles and responsibilities necessary
for achieving common objectives and thereby reducing cross-
functional barriers.
 Understanding organizational capabilities and establishing resource
constraints prior to action.
 Targeting and defining how specific activities within a system should
operate.
 Continually improving the system through measurement and evaluation.

Principle 6: Continual improvement

Continual improvement of the organization's overall performance should be a

permanent objective of the organization.

Key benefits:

36
  Performance advantage through improved organizational capabilities.
 Alignment of improvement activities at all levels to an organization's
strategic intent.
 Flexibility to react quickly to opportunities.

Applying the principle of continual improvement typically leads to:

 Employing a consistent organization-wide approach to continual

improvement of the organization's performance.
 Providing people with training in the methods and tools of continual
improvement.
 Making continual improvement of products, processes and systems an
objective for every individual in the organization.
 Establishing goals to guide, and measures to track, continual improvement.
 Recognizing and acknowledging improvements.

Principle 7: Factual approach to decision making

Effective decisions are based on the analysis of data and information

Key benefits:

 Informed decisions.
 An increased ability to demonstrate the effectiveness of past decisions
through reference to factual records.
 Increased ability to review, challenge and change opinions and decisions.

Applying the principle of factual approach to decision making typically leads to:

37
  Ensuring that data and information are sufficiently accurate and reliable.
 Making data accessible to those who need it.
 Analysing data and information using valid methods.
 Making decisions and taking action based on factual analysis, balanced with
experience and intuition.

Principle 8: Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial

relationship enhances the ability of both to create value

Key benefits:

 Increased ability to create value for both parties.

 Flexibility and speed of joint responses to changing market or customer
needs and expectations.
 Optimization of costs and resources.

Applying the principles of mutually beneficial supplier relationships typically

leads to:

 Establishing relationships that balance short-term gains with long-term

considerations.
 Pooling of expertise and resources with partners.
 Identifying and selecting key suppliers.
 Clear and open communication.
 Sharing information and future plans.
 Establishing joint development and improvement activities.
38
  Inspiring, encouraging and recognizing improvements and achievements by
suppliers.

7.Dr W. Edward Deming's 14 Principles

1. Constancy of purpose: Create constancy of purpose for continual improvement of

products and service to society, allocating resources to provide for long range
needs rather than only short term profitability, with a plan to become competitive,
to stay in business, and to provide jobs.

2. The new philosophy: Adopt the new philosophy. We are in a new economic age,
created in Japan. We can no longer live with commonly accepted levels of delays,
mistakes, defective materials and defective workmanship. Transformation of
Western management style is necessary to halt the continued decline of business
and industry.

3. Cease dependence on mass inspection: Eliminate the need for mass inspection as
the way of life to achieve quality by building quality into the product in the first

39
 place. Require statistical evidence of built in quality in both manufacturing and
purchasing functions.

4. End lowest tender contracts: End the practice of awarding business solely on the
basis of price tag. Instead require meaningful measures of quality along with price.
Reduce the number of suppliers for the same item by eliminating those that do not
qualify with statistical and other evidence of quality. The aim is to minimize total
cost, not merely initial cost, by minimizing variation. This may be achieved by
moving toward a single supplier for any one item, on a long term relationship of
loyalty and trust. Purchasing managers have a new job, and must learn it.

5. Improve every process: Improve constantly and forever every process for
planning, production, and service. Search continually for problems in order to
improve every activity in the company, to improve quality and productivity, and
thus to constantly decrease costs. Institute innovation and constant improvement of
product, service, and process. It is management's job to work continually on the
system (design, incoming materials, maintenance, improvement of machines,
supervision, training, retraining).

6. Institute training on the job: Institute modern methods of training on the job for
all, including management, to make better use of every employee. New skills are
required to keep up with changes in materials, methods, product and service
design, machinery, techniques, and service.

7. Institute leadership: Adopt and institute leadership aimed at helping people do a

better job. The responsibility of managers and supervisors must be changed from
sheer numbers to quality. Improvement of quality will automatically improve
productivity. Management must ensure that immediate action is taken on reports of
inherited defects, maintenance requirements, poor tools, fuzzy operational
definitions, and all conditions detrimental to quality.
40
8. Drive out fear: Encourage effective two way communication and other means to
drive out fear throughout the organization so that everybody may work effectively
and more productively for the company.

9. Break down barriers: Break down barriers between departments and staff areas.
People in different areas, such as Leasing, Maintenance, Administration, must
work in teams to tackle problems that may be encountered with products or
service.

10. Eliminate exhortations: Eliminate the use of slogans, posters and exhortations for
the work force, demanding Zero Defects and new levels of productivity, without
providing methods. Such exhortations only create adversarial relationships; the
bulk of the causes of low quality and low productivity belong to the system, and
thus lie beyond the power of the work force.

11. Eliminate arbitrary numerical targets: Eliminate work standards that prescribe
quotas for the work force and numerical goals for people in management.
Substitute aids and helpful leadership in order to achieve continual improvement of
quality and productivity.

12. Permit pride of workmanship: Remove the barriers that rob hourly workers, and
people in management, of their right to pride of workmanship. This implies, among
other things, abolition of the annual merit rating (appraisal of performance) and of
Management by Objective. Again, the responsibility of managers, supervisors,
foremen must be changed from sheer numbers to quality.

13. Encourage education: Institute a vigorous program of education, and encourage

self improvement for everyone. What an organization needs is not just good
people; it needs people that are improving with education. Advances in
competitive position will have their roots in knowledge.

41
14. Top management commitment and action: Clearly define top management's
permanent commitment to ever improving quality and productivity, and their
obligation to implement all of these principles. Indeed, it is not enough that top
management commit themselves for life to quality and productivity. They must
know what it is that they are committed to-that is, what they must do. Create a
structure in top management that will push every day on the preceding 13 Points,
and take action in order to accomplish the transformation. Support is not enough:
action is required!

8.DMAIC six sigma approach.

The six sigma approach for projects is DMAIC (define, measure, analyze, improve
and control). These steps are the most common six sigma approach to project work.
Some organizations omit the D in DMAIC because it is really management work. With
the D dropped from DMAIC the Black Belt is charged with MAIC only in that six
sigma approach. We believe define is too important be left out and sometimes
management does not do an adequate job of defining a project. Our six sigma
approach is the full DMAIC.

Define (DMAIC).

42
Define is the first step in our six sigma approach of DMAIC. DMAIC first asks
leaders to define our core processes. It is important to define the selected project scope,
expectations, resources and timelines. The definition step in the six sigma approach
identifies specifically what is part of the project and what is not, and explains the scope
of the project. Many times the first passes at process documentation are at a general
level. Additional work is often required to adequately understand and correctly
document the processes. As the saying goes “The devil is in the details.”

Measure (DMAIC).

Many think when they start a journey the most important thing to know is where they
are going. While we agree knowing where you want to go is very important, we believe
some of the first information you need before starting any journey is your current
location. The six sigma approach asks the Black Belt project manager to quantify and
benchmark the process using actual data. At a minimum consider the mean or average
performance and some estimate of the dispersion or variation (maybe even calculate the
standard deviation). Trends and cycles can also be very revealing. The two data points
and extrapolate to infinity is not a six sigma approach. Process capabilities can be
calculated once there is performance data,

Analyze (DMAIC).

Once the project is understood and the baseline performance documented and verified
that there is real opportunity, it is time with the six sigma approach to do an analysis of
the process. In this step, the six sigma approach applies statistical tools to validate root
causes of problems. Any number of tools and tests can be used. The objective is to
understand the process at a level sufficient to be able to formulate options for
improvement. We should be able to compare the various options with each other to

43
determine the most promising alternatives. As with many activities, balance must be
achieved. Superficial analysis and understanding will lead to unproductive options
being selected, forcing recycle through the process to make improvements. At the other
extreme is the paralysis of analysis. Striking the appropriate balance is what makes the
six sigma Black Belt highly valuable.

Improve (DMAIC).

During the improve step of the six sigma approach ideas and solutions are put to work.
The six sigma Black Belt has discovered and validated all known root causes for the
existing opportunity. The six sigma approach requires Black Belts to identify
solutions. Few ideas or opportunities are so good that all are an instant success. As part
of the six sigma approach there must be checks to assure that the desired results are
being achieved. Some experiments and trials may be required in order to find the best
solution. When making trials and experiments it is important that all project associates
understand that these are trials and really are part of the six sigma approach.

Control (DMAIC)

Many people believe the best performance you can ever get from a process is at the
very beginning. Over time there is an expectancy that slowly things will get a little
worse until finally it is time for another major effort towards improvement. Contrasted
with this is the Kaizen approach that seeks to make everything incrementally better on a
continuous basis. The sum of all these incremental improvements can be quite large.
As part of the six sigma approach performance tracking mechanisms and measurements
are in place to assure, at a minimum, that the gains made in the project are not lost over
a period of time. As part of the control step we encourage sharing with others in the
organization. With this the six sigma approach really starts to create phenomenal

44
 returns, ideas and projects in one part of the organization are translated in a very rapid
fashion to implementation in another part of the organization.

 POTENTIAL BENEFITS OF TQM:

The advantages of adopting TQM system compared to conventional quality system

are

numerous and are outlined below:

1. TQM helps to focus clearly on the needs of the market. The traditional approach of
quality
control focuses on the technical details of a product so as to satisfy the customer.
However, the customer longs for different satisfaction perspectives which are
generally overlooked in the traditional approach. The needs change from person to
person and also from place to place. As TQM focuses on the concept of
universality, it tries to abstract the satisfaction perceptions of market and thus helps
the organisation to identify and meet the requirements of the market in a better
way.

2. TQM facilitates to aspire for a top quality performer in every sphere of activity. It
is a well accepted fact that the negative attitudes of employees and non-
participative culture of the organisation’s success, growth and prosperity. TQM
emphasises, on bringing about attitudinal and cultural change through promotion of

45
 participative work culture and effective team-work. This serves to satisfy the
higher human needs of recognition and self-development and enhances employee’s
interest in the job. The employee’s performance, thus, is not restricted to the
product or service areas but reflects in other spheres as well.

3. It channelises the procedures necessary to achieve quality performance. Quality in

its true sense can not be achieved instantly. It requires a systematic and a long-term
planning and strategic approach. By focusing on defining the quality policies, goals
and objectives, and communicating these properly to one and all in the
organisation, adopting SQC and SPC techniques and developing and using a
system of evaluation, the organisations can channelize their efforts to achieve the
desired and objectivated quality performance.

4. It helps examine critically and continuously all processes to remove non-

productive activities and waste. The organisations always aim at improving
productivity as it leads to reduction in cost resulting in increase in profitability.
The efforts in this direction are contributed because of the formation of quality
improvement teams which meet regularly and through a systematic approach
which tries to remove non-productive activity. A continuous effort to identify the
problems and resolve them helps to reduce the waste. The culture of well being
thus improves housekeeping, cost-effectiveness and safety.

5. It gears organisations to fully understand the competition and develop an effective

combating strategy. The dynamic changes in the global market and the open

46
 market policies adopted by a large number of organisations ha resulted in increased
competition and for many organisations the survival has become a key issue. For
this cause, it is essential for the organisations to understand the competitions and
develop and adopt suitable strategies to meet the challenge. As TQM helps to
understand the pulse of the customer and thus the market, it gives an edge to the
organisation to meet the competition.

6. It helps to develop good procedures for communication and acknowledging good

work. Improper procedure and inadequate communication are yet another bane of
many organisations, which result in misunderstanding, confusion, low
productivity, duplication of efforts, poor quality, low morale and so on. TQM
brings together members of various related sections, departments and different
levels of management thereby providing an effective vehicle of communication
and interaction.

7. It helps to review the process needed to develop the strategy of never ending
improvement. Quality improvement efforts cannot be restricted to any time period.
They nee to be continuous to meet the dynamic challenges. TQM emphasises on a
continuous and periodic review so as to make the required changes.

The benefits derived by the organisations, therefore, are many and multi-faceted.
Many of these can be measured in quantitative terms. However, the intangible
benefits, which include enrichment of the quality of the worklife and many more
are not quantifiable. At the same time, it has to be established whether they do

47
 occur or not in order to prove or disprove the efficacy of the concept. This can be
assessed by a well-planned research project or by carrying out an opinion survey
periodically. The tangible and intangible benefits of TQM are as presented

9.ADVANTAGES OF TOTAL QUALITY

MANAGEMENT.

TQM is a collaborative system. It can be conceptualized as a network of processes

and activities through which various people in the organization can see different
aspects of a problem and can constructively explore their own limited vision of what
is possible.

48
 TQM thus is an interdepartmental and inter organizational effort to address problems
of improvement.

TQM provides a foundation for moving towards answering the questions of why, how
and with what consequences people participate in multiple dimensional problem
solving.

TQM does not rely solely on the chain of command; it develops multi-channel
interactive networks throughout the organizations.

TQM is essential to establish cooperative links within the organization that can span
the various gaps among people to enable coordinate the action.

TQM can be viewed to play a transformational role within the organization.

Transformational changes occur only when hard issues like budget, manufacturing
marketing, disturbing and so on are blended with soft issues like values, culture,
vision, leadership style, innovative behavior and so on.

THE ISSUES ARE ( MAY BE USE FOR PRESENTATION)

 HOW DO WE GET EVERYBODY TO WORK TOGETHER ( Team Player)

 HOW DO WE MAINTIN THEIR INVOLVEMNT (Interest/Motivation)

 HOW DO WE MAKE THEM CONTIBUTE THEIR BEST (10% stretch game)

 HOW DO WE CREATE THEIR SATISFACTION

 HOW DO WE CONTINUOUSLY IMPROVE

49
 Problems/Issues

Situation

ABC bank is one of the biggest banks in Asia established 85 years back. Recently it
was faced with some problems such as increased. Customer complaints, inconsistent
service at the front counter, unbalanced investment resulting in reduced profit margins
and a significant drop in customers.

Solution:

The Organization, therefore, set up a quality improvement team which took up a

‘Customer Care’ program to bring about a change in managing customer service. The
program primarily focused on trouble shooting, customer service improvement and
improving the management and staff relations. In building quality this, the groups were
composed of people from all levels and no status titles were assigned. Groups were set
up keeping in view the group dynamics and small group bonding principles in mind.
The workshops were arranged for the groups focusing on a super ordinate goal to put
the ‘Customer First’ as a philosophy.

The workshops opened with personal value searching session so as to create a motive
for action. To further the value motive the prospects of personal growth were reviewed.
A congruence between personal value and organizational goal was established. The
workshop programmes emphasized on creative problem solving approach to permit
innovation, and challenge the existing cultural norms. During the workshops the
culture, work environment and attitudes towards customers in the banking section were
discussed openly, resulting in developing a sense of trust and commitment amongst
participants.

50
 Through these workshops a network of committed people was established
across the branches. To promote commitment and strong bonding, the rewards were
given. The process percolated downwards and the cultural change upwards. Thus, by
stepping outside the system and focusing on motivation and reward, the organization
brought about a necessary cultural change to keep the satisfaction of the customer as a
primary goal of all the employee.

TQM FAILURES CASE EXAMPLE:

Mr. Pandit, President of G.T. Electronics, read a lot about the TQM. He
instructed the subordinates to arrange a meeting with all department heads and plan to
implement TQM in G.T. Electronics. Mr. Pandit personally addressed the meeting and
subsequently also wrote an enthusiastic article about TQM in the company newsletter.

51
He sent the top managers for TQM training programs and declared that the TQM be
initiated. However, he himself later got involved with joint ventures in Europe. The
TQM program was forgotten. When he returned to the country. After few months, he
found that very few people showed interest in TQM. The earlier initiative and interest
waned out because of the CEO’s lack of convication.

10.Caparo at a Glimpse

"Caparo is more than a successful business enterprise - it is a story of people, of

values and of human effort. Above all it is a story of faith and family" - Lord
Paul, Chairman and Founder.

52
Caparo is a fast growing global association of businesses with over a 1bn Euro
turnover. With interests predominantly in the design, manufacture and marketing
of steel, automotive and general engineering products, Caparo’s wider activities
encompass also new product development, materials testing services, hotels,
media, furniture and interior design, financial services, energy, medical products
and private equity investment.

The Group was founded in 1968 by Indian born British Industrialist, the Rt. Hon.
Lord Paul of Marylebone, who remains Chairman. Today, Caparo and its
associates employ more than 9,000 people in their worldwide operations across
Europe, North America, Asia, the Middle and the Far East.

In 1968 Lord Paul took out a £5,000 loan and opened Natural Gas Tubes. The
company, based in Huntington in Cambridgeshire, manufactured spiral weld
tubes and achieved first year sales of £14,000. In 2006 Caparo group’s sales
exceeded £625m.

Lord Paul's roots go back to the little Punjab town of Jalandhar in India where, in
1910, his father started by making steel buckets, tubs, trunks and agricultural
implements, and had a small foundry at the back of the family home. From this
modest undertaking Apeejay Surrendra Group has grown into one of India's
largest family owned industrial groups in a wide range of industries : steel,
engineering, pharmaceuticals, hotels, shipping and tea.

53
Lord Paul and his brothers grew up surrounded by their father's small business
and succeeded him in its diversification and expansion.

From his father, Lord Paul and his brothers learnt three important business
lessons: integrity, hard work and the value of close family ties. Though the
business prospered, the family continued to live frugally, following the Hindu
prescription "simple living and high thinking". Anecdotes recall that when Lord
Paul's mother was asked why she wore no jewels, she would proudly declare:
"my sons are my jewels." This ethic of close family ties continued and Lord Paul
attributes much of his business success to the moral and emotional support he
received from his three brothers - Stya, Jit and Surrendra, and the happy home
life created by his wife, Aruna.

This web site provides an overview of the companies that make up the Caparo
Group today. It also aims to tell you something of the internal spirit, the "what
drives Caparo" story. Above all this is the story of a vision inspired by Lord
Paul’s daughter Ambika, who was responsible for his move to England.

"Our success in the years to come will continue to depend on the skill of our
family and management in reacting to opportunities, whilst continuing with
determination, integrity and the principles that have carried us successfully this
far" – Lord Paul.

The Caparo group has been built through a combination of acquisitions, organic
growth of established businesses and the development of greenfield projects. The
54
Group is particularly proud of the latter, which demonstrates its skill at building
technology based steel product companies from scratch, and penetrating export
markets.

Under the leadership of Angad Paul, appointed as Chief Executive in 2002,

Caparo continues this successful formula for growth. The grouping of
independently managed business units, mainly operating in metal and related
markets, gives both critical mass and a stable platform for growth. A customer
oriented philosophy, striving to provide products, services and solutions of the
highest quality at competitive prices is coupled with a lean and flat corporate
structure ensuring low overheads and rapid decision making. These key features
are at the core of Caparo’s success.

"Success will happen so long as you work hard and with integrity" - Lord Paul.

Caparo has never been a company that is highly centralised and there is never
any intention of changing the individual character of each operating division by
dictating a specific company mission statement or vision. However Caparo is
built upon some core values and beliefs and it is these that guide our decisions
and our attitudes.

These ethics were developed from Lord Paul’s Anniversary speech in 1994
which celebrated 25 years of Caparo.

THE CAPARO ETHIC

• Caparo is something more than a successful enterprise…it is a story of people,

of values and of human effort.

55
• Working together we can build Caparo with resolution, fortitude and ability.

• The goodwill and confidence of Caparo employees, our suppliers, our

customers and our managers is the bedrock of our business

• Always aspire for excellence; nothing else is good enough

• Never abandon hope

• There is no such thing as bad business; only bad management

• “What I like is people who are proud of what they do” Lord Paul

• Our aim is to always be in the top 10% of performers (measured against our
industry competitors)

• Success will happen so long as you work hard, with integrity

• Find excitement in industry and your own job in it

• Cherish the enduring values of fidelity, truth and integrity

Guiding Principles

Upholding the Caparo name

• Customers and suppliers trust Caparo based on our capability and integrity -
qualities that underpin our reputation.
• We seek to work with only those customers and suppliers who share our
56
standards of legitimacy and integrity.
• We use all assets belonging to Caparo and to our customers and suppliers,
including tangible and intellectual assets, in a manner both responsible and
appropriate to the business.

Behaving Professionally

• We offer only those services that we believe we can deliver.

• We meet our contractual obligations.
• We believe that leadership demands courage, vision and integrity.
• We achieve excellence through innovation, learning, agility and team work.

Respecting Others

• We take pride in the diversity of our workforce and view it as a competitive

advantage to be nurtured and expanded.
• We try to balance work and private life and help others to do the same.
• We invest in the continuing development of our skills and abilities to meet the
needs of the business.

Corporate Citizenship

• We express support for fundamental human rights and avoid participating in

business activities that abuse human rights.
• We act in a socially responsible manner, within the laws, customs and traditions
of the countries in which we operate, and contribute in a responsible manner to
the development of communities.
• We aspire to act in a manner that minimises the detrimental environmental
impacts of our business operations.

57
• We encourage the support of charitable, educational and community service
activities.

In the Workplace

Professionalism

• We disclose confidential information or personal data only when appropriate

approval to do so has been obtained, and/or we are compelled to do so by legal or
regulatory requirements.
• We use all assets belonging to Caparo and to our customers and suppliers,
including tangible and intellectual assets, only for legal and authorised purposes.
• We aim to avoid conflicts of interest. Where potential conflicts are identified
we discuss them with Senior Management to agree a framework for managing
the potential conflict.
• We compete vigorously, engaging only in practices that are legal and ethical.
• When faced with difficult issues or issues that place Caparo at risk, we consult
appropriate Caparo colleagues before taking action.
• It is unacceptable for us to receive or pay bribes, or to offer or receive any form
of inducement as a means to derive any un-worthy advantage, either over our
customers or suppliers.

Working together

• We respect the confidentiality and privacy of our customers and suppliers, our
colleagues and others with whom we do business.
• We treat our colleagues, customers and suppliers and others with whom we do
business with respect, dignity, fairness and courtesy.
• We respect the experience and opinions of our colleagues.

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• We recognise the need to communicate at all levels of the business.
• We are committed to maintaining a work environment that is free from
discrimination or harassment.
• We provide a safe working environment for our people.

An expansion into automotive and aerospace markets, whilst maintaining and

developing the steel and engineering business, is a key strategy for the group.
This has been highlighted by the launch of the Caparo T1 high performance
sports car in 2006, which showcases many of Caparo’s innovative new products
and processes in this sector.

The development of Caparo Vehicle Products, a grouping of Tier 1 component

design, engineering and manufacturing companies providing advanced solutions
to the automotive, aerospace, military and motor sport markets is just one of the
key initiatives being developed within the group. Furthermore the creation of
Caparo Testing Technologies, a group of businesses specialising in
comprehensive Destructive and Non-Destructive Testing (NDT) services will
provide support to the aerospace industry and offer a valuable service to other
Caparo group companies. Geographically, Caparo’s plans to create a leading
automotive components manufacturing group in India are well advanced.

From an initial joint venture with the major Indian car manufacturer Maruti
Udyog in 1994, Caparo have established a wide range of businesses and now
operate on 22 sites in India and plans are in place to develop a further 9. Caparo
India’s activities will serve not only the regional automotive sector, but also
established Caparo customers worldwide where Caparo will continue to provide
local service and support, with the benefits of Asian manufacturing.

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 • Aerospace
• Engineering
• Innovation
• Investment
• Leisure
• Steel Products

C
OMPANIES
In 1968 Lord Paul started Caparo with one small factory in Huntingdon. Over
40 years later it has grown into a circa 1bn Euro business employing over
9,000 people worldwide.

Caparo today a fast growing global association of businesses, encompassing

over 50 companies operating at more than 70 sites across the UK, Europe,
North America, Asia, the Far and the Middle East. With interests mainly in the
design, manufacture and marketing of steel, automotive and general
engineering products, Caparo's wider activities encompass new product
development, investment, materials testing, media, hotels, furniture, interior
design, energy and medical products. And Caparo is still growing - in 2006
alone it acquired 22 companies.

This section of the website aims to provide an overview of our divisions. We

have also taken this opportunity to show you the products and services each
company offers in order to create a full and clear picture of our wide range of
capabilities. If you have any questions about a product or a service, please use
the direct contact details available on each of the companies' profile pages, or

60
visit their websites. Alternatively you can contact Caparo using the on-line
enquiry form in the Contact Us section.

Caparo is a diverse, fast growing group with a customer orientated

philosophy. Our strategy centres on supplying products of the highest quality
at competitive prices coupled with a lean and flat corporate structure
resulting in fast decision making.

Contained within this section is an overview of the products we manufacture

and supply; from steel tubes, where it all began, to file handles, forgings and
braking systems.

To help you navigate around this section of the site we have grouped our
products, services and markets into divisions. These divisions are
predominantly product orientated and a list is provided below. Alternatively, if
you already know what you are looking for please use our product search
facility.

If you still cannot find what you are looking for please contact us via the on-
line enquiry form.

• Aerospace
• Engineering Products
• Investment
• Steel Products
• Vehicle Products
• Engineering
• Innovation
• Leisure

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 • Steel Products
• Vehicle Products
S
SERVICES
Caparo believe not only in supplying products of the highest quality at
competitive prices but in providing customers with a range of services from
cutting steel tube to length to non destructive testing. Caparo work in
partnership with both customers and suppliers and aim to be a solutions
provider not just another component supplier.

This section of our website introduces some of our key services; from steel
distribution and stockholding to advanced vehicle design and materials
engineering consultancy.

To help you navigate around this section of the site we have grouped our
services into divisions. Alternatively, if you already know what you are
looking for please use our search facility.

If the service you are looking for is not listed please contact us via the on-line
enquiry form. As a flexible and customer orientated organisation, we will
endeavour to provide the service you require.

ore Products
Precision and light wall mechanical ERW steel tubes in Circular, Square,
Rectangular, Flat Sided Oval, Flo-Coat and Electrical Conduits.

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Steel Types:
Cold Reduced, Hot Rolled Pickled and Oiled, High Strength Steels, Hot Rolled
Black, Pre-galvanised and Aluminised.
Precision and Light Wall Mechanical ERW Steel Tubes:
Circular: 12.7mm x 0.9mm – 82.5mm x 6.0mm
Square: 15.88mm x 15.88mm x 0.9mm
– 60.0mm x 60.0mm x 2.5mm
Rectangular: 25.4mm x 12.7mm x 0.91mm – 60.0mm x 30.0mm x 3.0mm
Flat Sided Ovals: 30.0mm x 15.0mm x 1.2mm – 60.0mm x 30.0mm x 2.5mm
Electrical Conduit: 20mm, 25mm, 32mm, 38.1mm, 50mm
Approvals
QS- 9000 including BS EN ISO 9002 : 1994
BS EN 9001 : 2000 (Cert No. FM 94407)

Caparo Precision Tubes produce precision tubular products in accordance with

BS EN 10305-3/5. In addition to this standard, tubes are produced to stringent
customer specific standards across a wide range of industries. Along with the
products detailed below, Caparo Precision Tubes have the ability to help
customers achieve engineered solutions for new and existing projects by the use
of specific steel grades and the optimum use of sections.

Cold Rolled Reduced (CR)

A superior surface finish coupled with close dimensional control makes this
product ideal for high quality surface coatings and a wide variety of precision
engineering uses. Applications include domestic, kitchen and garden furniture,
shop fittings, prams, pushchairs, shopping trolleys and other uses where optimum
surface finish is desirable.

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Hot Rolled Pickled and Oiled (HRPO)
This material is widely specified where tubes require high quality powder Caparo
precision and light wall mechanical ERW steel tubes are available in a
comprehensive range of dimensions, grades and steel finishes.
Hot Rolled Black (HRB)
A general purpose cost effective utility tube. This product, developed by Caparo,
is used extensively through the agricultural, construction and general fabrication
industries where the combination of strength, and economy is a major
consideration. These tubes are entirely suitable for painting and hot dip
galvanising.
Pre-Galvanised
Manufactured from Pre-Galvanised strip for optimum surface quality.
Applications include bath stands, ceiling mountings, tents and awning frames,
roof racks, aerial masts, rotary dryers, line posts and props.
Aluminised and Perforated
These tubes are produced from pre-coated strip and are widely used for
automotive exhaust assemblies.
Hot Dipped Galvanised
All Caparo tubes are made to a chemical analysis that is ideally suited to hot dip
galvanising. The controlled silicon and phosphorous levels give reactively light
zinc coatings and prevent the occurrence of ‘grey bar’ effect.
Flo-Coat
An in-line galvanised product which gives the customer a clean, bright tube
suitable for numerous applications. Flo-Coat allows further coating/painting
without precleaning. Typical uses include garden and leisure outdoor products,
children’s play equipment, storage systems, conveyor rollers.

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Plastic Coated
Off-line plastic coated tube is supplied in a variety of finishes and colours. This
tube offers the strength of steelplus the aesthetic appeal of plastic. It can be
supplied in a variety of colours and textures. Typical applications are outdoor,
gardening equipment, handrails and garment rails.
Conduit
Barton, Longmore and Hayes brand conduit tube are market leaders in the UK
and overseas.
Barton conduit is manufactured in the UK at our Oldbury factory which is the
largest British tube mill manufacturing conduit and precision tube with highly
automated mills and finishing/packaging equipment.
Made from consistent high quality ‘continuous cast, manufactured E.U.
(predominately British) steel. Conduit tube is rolled from steel which we specify
shall have physical properties which allow easy on site manipulation without risk
of splitting or fracture.

Every length of conduit tube is hard stamped during the manufacturing process
with the Company Name, UK origin, Standard Number, Corrosion Class and a
production date code which allows full traceability. Prompt despatch from very
substantial finished product stocks. Includes both popular 20mm and 25mm
products and also 32mm, 1 1/2” and 2”conduit tube. Modern in house painting
plant using a water based system with excellent appearance and durability. Black
painted conduit tube ex stock. BSI Management Systems Ltd. audits Barton
Engineering's Quality Management System and confirms it complies with BS EN
ISO 9001:2000 In addition to supplying both 3.75 mtr and 3.0 mtr lengths of
conduit tube from stock. Modern automated equipment allows us to supply

65
batches of conduit tube cut to length without the extended lead times and high
labour costs traditionally associated with non standard spot orders.

Caparo group companies can offer the aerospace industry a diverse range of
solutions. Further expansion into this market is part of Caparo’s ongoing
commercial strategy.

Products supplied to the aerospace market include Anti Shock Vibration mounts
from Caparo Dymanics. The range of lightweight mounts is compact enough to
be used in a variety of aerospace applications.

Accles and Pollock have been forming tube with ingenuity since the early 20th
Century – developing the skills that have enabled its tube to be used in the most
demanding aerospace applications. Examples include fuel carrying pressure
hoses, part of an aircraft’s sub-system, used to maintain correct functioning of
reverse thrusters.

66
Whilst these products are featured in the following pages, the products supplied
to the aerospace market by the group range from aluminium castings to forgings
and steel tube.

For more information on any of these products please follow the links below or
alternatively contact us using the online enquiry form.

In 1995 Caparo Industries formed Caparo Engineering from their various

smaller and medium sized engineering companies based in the West Midlands,
England. This strategy gave these companies a critical mass without losing the
focus of the individual companies.

Individual companies operate autonomously within Group guidance and the

Caparo philosophy. All companies are highly service orientated seeking close
partnerships with their customers.

They aim to be proactive, innovative and flexible. They are tightly run and seek
to be a low cost producer within their industry. There is a commitment to develop
continuously their products, service and people.

The majority of the manufacturing plants, with the exception of a forges in the
North East of England and Poland, are in the Black Country region of the West
Midlands, England.

Caparo Steel Products is one of the UK’s largest steel conversion and
distribution businesses, manufacturing an extensive range of structural steels,
precision tube, spirally welded tube, special bar qualities, industrial wires, cold
rolled strip and spring steel strip.
67
Caparo Steel Products satisfies the steel demand for a wide variety of industries,
including construction, steel fabrication, steel pressing, mechanical engineering,
forging, mining, quarrying, automotive, shipbuilding, railways, petrochemical,
handtools, precision blades, springs, farming, furniture, leisure, etc.

All Caparo Steel Products' divisions are closely associated in terms of their
customer and supplier base and this new formation has given the group the
benefit of a critical mass without losing the focus of the individual businesses.
Adoption of best practices and cross fertilisation of ideas is continually helping to
progress all Group companies.

The products manufactured and supplied by the group are detailed within this
section of the website.

Offering design, rapid prototyping and sample development, as well as series

production and line side delivery, the Caparo Vehicle Product group combines
its portfolio of products and services to provide full vertical integration to its
customers.

The majority of the companies in this division are manufacturing orientated, with
the exception of the consultancy services offered by Caparo Vehicle
Technologies (CVT). CVT is an advanced automotive technology and
engineering design company, focused on providing technology development,
materials engineering and design services to the mainstream automotive,
motorsport and aerospace markets.

In addition to their skills in vehicle design and engineering the company has
particular expertise in materials technology. The company has gained the

68
services of Ben Scott-Geddes and Graham Halstead who were responsible for the
Mercedes SLR McLaren sports car. This unique capability and understanding of
materials performance, including how materials as dissimilar as aluminium,
advanced composites, engineering plastics and high strength steel can be joined -
and which is the best material for a particular part of the car - is important to
manufacturers needing to reduce the weight of vehicles to make them more fuel
efficient without compromising active and passive safety.

For more information on the companies within the Vehicle Products group please
visit the companies section of the website.

Caparo group has invested in a diverse portfolio of companies from film

distribution to private equity investment. Introductory information about these
companies is detailed below.

AV Pictures is a film company involved in the financing, production and

international sales of independent feature films. The company is steadily building
its library of film rights. The library currently includes School for Seduction,
starring Kelly Brook, Wilderness, starring Sean Pertwee and The Other Half,
starring Danny Dyer. To learn more about AV Pictures please visit
www.avpictures.co.uk.
Core Capital is a specialist private equity investor of which Caparo is an anchor
investor and commercial partner. For more information on the products provided
by Core Capital please visit www.core-cap.com.
Film24 is a television channel dedicated to films, which is available on Sky
Digital, channel 158. For more information on Film24 please visit
www.film24.com.

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Hapax has developed patented search engine technology, which combines
artificial intelligence with natural language processing. The company sells
solutions for media monitoring and ad serving from its offices in Stockholm and
London. To learn more about Hapax please visit www.hapax.com.
Caparo (GCC) is a Dubai based company, related to Caparo, which serves the
Group’s customers in the Gulf region. The business specialises in metallic cable
protection systems, including conduit tube, trunking, tray, flexible conduit, and
all associated accessories and fittings. It also provides a wide range of mobile
non-destructive testing (NDT) services dedicated to the aviation, aerospace,
construction, power generation, oil and gas and motor sport industries. For more
information on the Caparo (GCC) products and services visit
www.caparogcc.com.
Caparo China focuses the Group’s current business activities in the Far East,
and in particularly Greater China. It is a base for marketing Caparo in this part of
the world, whilst at the same time providing a number of related services to the
other Caparo subsidiaries.
Established & Sons is a London based design company synonymous with
innovative contemporary design. Working with some of the world’s leading
designers, architects and artists, it has already created a number of iconic
furniture and fittings collections and secured prestigious awards such as “Best
British Established Design Brand”, Elle Decoration International Design Award,
2008 and “Hall of Fame for Outstanding Contribution to the Design Industry”,
Design Week, 2009. To find out more visit www.establishedandsons.com.

• Innovation & Technology

• Innovation News

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home / innovation & technology

INNOVATION & TECHNOLOGY

The Innovation and Technology section of the website aims to promote the new
ideas, techniques and procedures within the Caparo group and how they are
helping our customers to improve their products.

Caparo’s dedication to innovation is represented via ‘The Caparo Innovation

Centre’. Caparo CEO, Angad Paul demonstrated his dedication to the
commercialization of inventive ideas at the beginning of 2003 via the
collaboration between Caparo plc and the University of Wolverhampton. Based
in the creative environment of Wolverhampton Science Park, the Caparo
Innovation Centre is an imaginative new approach to turning product ideas into
business realities. Angad Paul’s commitment to innovation design and quality
production is further exemplified via his part in the creation of Established and
Sons; a UK-based design and manufacturing company with an ambition towards
fostering and promoting the best of British design talent on the international
stage.

The Aqua Table, designed by Zaha Hadid, was part of Established and Sons’
debut collection in 2005. The table is proving to be a design phenomenon; one of
the two Limited Edition prototypes was sold at auction for $296,000.

A recent development within the group is Studio Caparo, a design and

prototyping business specialising in the manufacture and installation of bespoke
one-off limited edition and batch produced pieces of furniture. Like a studio the
company has gathered many processes and materials under one roof allowing
unparalleled operational flexibility. The company is collaborating with
Established and Sons to bring the Drift bench to life; an innovative piece of

71
furniture, designed by Future Systems architect, Amanda Levete. The piece
recently won the Best Furniture Award at the Design Week awards in February
2007. News of innovation and technological advances within the Caparo group
will be posted on the Innovation News section of the site.

Caparo is a key player in an extensive range of market sectors. Since Lord Swraj
Paul founded the group in 1968 Caparo has expanded its product portfolio from
steel tube via strategic acquisitions and new start up projects.

North America
Entry into the global marketplace was achieved via the acquisition of Bull Moose
Tube Company in 1988 which allowed Caparo to expand into the North
American steel market. Steel tube is currently sold into the North American
agricultural, automotive and construction markets.
India
In India Caparo is specializing in the manufacture of vehicle components and is
building a reputation in this market place as an engineering solutions provider to
the automotive market.
UK and Europe
In the UK, the Steel Products group is now one of the UK’s leading steel
conversion businesses supplying the agricultural, construction, furniture, power
generation, tooling and automotive markets with steel tube, wire, scaffolding and
precision strip.

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The development of the Engineering and Vehicle Products groups have allowed
Caparo access to the automotive, defence, marine and petrochemical markets, to
name only a few. Following numerous acquisitions in 2006 Caparo Aluminium,
part of the Caparo Engineering group, is now the leading sand and gravity die
caster accounting for 50% of UK output. Caparo’s UK manufacturing expertise is
now being used to develop new markets around the world. In India Caparo are
building a forge and aluminium foundry in order to provide customers with an
international solution – bringing them the benefits of the east and the west.

Caparo’s market places are detailed in the following pages with links to key
products and services.

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 11.Recommendations and Suggestions on TQM

We found that Caparo is having problem of shortage of material supply , etc we

recommend them following solutions:

1. Total employee involvement in decision making.

2. Monthly quality review of product

3. Internal quality management for employees

In Mahindra & Mahindra – FES we found problem of employee rigidity and

beaurocratic behavior towards working style. We recommend them:

1. Employee involvement in decision making & strategic planning

2. Treat all employees on same scale – uniformity in employee treatment.

3. Improvement in Internal quality management for employees

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 12.LIMITATIONS OF THE STUDY

 There was lack of time. As we know research work is time taking process..
 Secondary data has been collected from different- different sources like
internet and books. So data collected through internet might not be more
reliable.

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 13.BIBILIOGRAPHY

• Website of Caparo
• Website of ISO.
• Website of Govt. of India.
• Management Journals

-----THANKS-------

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