UNIVERSITY OF CENTRAL PUNJAB

FACULTY OF MANAGEMENT SCIENCE

Change Management

Case Study-Final Project

Submitted To: Prof. F. Jam

Submitted by: Hasan Maqsood Adeel Ayaz Ahsin Altaf Fahad Khalil Sheikh Ali Usman l1s09mbam2050 l1s09mbam0022 l1s09mbam0032 l1s09mbam2016 l1s09mbam2026

Section: C

Date: 18/06/2011

Quality Standard implementation at Ramzan Sons Electrical Industries (Regd.) -Gujranwala Pakistan
In 2006 Saqib Ramzan, Marketing Manager of Ramzan Sons Electrical Industries (Regd.) completed his graduation in business administration and came into his family business which was manufacturing of water pumps. He was an energetic person and had the ability to solve the issues related to quality that was being faced by the company. His first step after joining the company was to take initiatives for solving the quality issues which he thought was the main problematic area/ hurdle towards achieving the vision of their company, which is:

To become national leader in water pumps industry with continuous improvement in quality and other manufacturing expertise

Company Background:
Ramzan Sons Electrical Industries (Regd.) was set up by Khalid Ramzan and Rafaqat Ramzan in 1992 with the aim of being the leader in the pumps industry. It started business in pumps manufacturing in Gujranwala with 30 workers. At that time the industry of water pumps was attractive and there was gap which need to be identified and fulfilled for the needs of the consumers. Initially market of Ramzan Sons Electrical Industries (Regd.) was confined only in Punjab as they were manufacturing on low scale with traditional work style with no up-todate technology. As the business expanded so the operations of business line and HR. Now the company has wide variety of products and have more than 100 workers.

Management Structure:
Ramzan Sons Electrical Industries (Regd.) was regarded as the growing name in water pumps industry. Rafaqat is both the CEO and HR executive where as Khalid, the elder brother of Rafaqat, is the director operations in Sunrise Water Pumps. Both have wide

experience in the manufacturing of water pumps. Saqib Ramzan, the younger brother of Ramzan and Khalid, came into company as Marketing Manager and other departmental supervisor are Faisal, Rehmat Ali and Inayat who respectively supervising winding, packing and kharad departments at Ramzan Sons Electrical Industries (Regd.) whom are responsible for direct reporting to Khalid.

Operations at Ramzan Sons Electrical Industries (Regd.):

The first stage at the operations of Ramzan Sons Electrical Industries (Regd.) is the casting of iron in which raw iron is given a rough shape of water pumps. Once it is given a proper shape, the next step is cutting the extra iron from casted pumps which is called kharad. After the cutting of extra iron it is winded and then copper wires are properly arranged in Water Pump for their proper working. Once it is manufactured it goes to the packing department as a finished good for the safety packing.

Raw Material

Casting

Kharad

Motor Winding

Packing

Fitting

Problems or challenged faced by Ramzan Sons Electrical Industries (Regd.):

After few years of operation and when the firm got fame in the market and traditionally went for deciding to expand their operations country-wide, it faced a lot of issues, of which major ones were lack of management of orders, late payments, huge re-work cost of production because of no proper responsibilities or informal management style, no reporting system, decline in sales and so the profits got downwards, no hierarchy in which they could decide their responsibility, no interaction of employees and no inventory

control. Also this had become the habit of employees at Sun Rise that instead of working in their regular working hours (8 -5), they remain idol and work in their extra working hours allowed to them for extra payments.

Business Challenges Faced By Ramzan Sons Electrical Industries (Regd.):

When Saqib Ramzan came into business after getting MBA degree he came to know about all major problems as he was the young business graduate and want to give a proper organizational look to company. After analyzing the problems he found that the company is in a need of a good structural and quality focus environment so he decided to work for ISO 9001-2008 certification. The reason for ISO certification was that he thought that the need for business to improve quality of services is no longer an option but a necessity and he knew the advantages of ISO in a company. Also that was an urgent need Saqib felt for Sun Rise because he wants to improve the process of company and effective departmentalization with one departmental supervisor in all departments of the company, the idea was to allow the department supervisors to fully concentrate on their respective department. This was the change; Saqib thought was the important one for maintaining the company position and stop the profits from declining further. (See Exhibit 4)

During the phase of certification of ISO 9001-2008 he faced a lot of resistance by both the brothers and other management employees especially whom had the habit of working for extra time, as they were used of old traditional management style, fear of reduction in their incentives and they also knew the they were going to be the target of the coming change. Saqib was very conscious about the implementation of ISO 9001-2008, so somehow he made their elder brothers agreed.

During and after the implementation, to make non-believers, believers, Saqib with the help of his elder brothers started communicating the change to the lower employees and explained them the benefits of training who thought that it was a difficult work. The

benefits included facilities like welfare cards of employers for free treatment of their children, parents and schooling for their children and also announced that a person performing according to new culture or change will be paid with bonus too.

After ISO 9001-2008:

Toward the end of 2008 the management of Ramzan Sons Electrical Industries (Regd.) felt quite pleased with the overall achievements of the company as management employees now reflect a good structure and gave company a new dimension of prosperity. By 2008 the management institutionalized its performance control system at all levels of the business for sustaining the change and conform to the new standards. First, Departmental supervisors met weekly with the top management to review performance. In one of these meetings the three brothers are invited to review the individual and manufacturing performance. In these Saqib initiated the use of some profitability indices for monitoring performance of the company. Secondly, benchmarked its operations with foreign manufacturers of water pumps. At individual employee performance evaluated and so appraised annually on merit basis. (See Exhibit 1)

Business Development at Ramzan Sons Electrical Industries (Regd.):

The Ramzan Sons Electrical Industries (Regd.) are actively considering further expansion as they are now moving to the international market by initially exporting Water Pumps which is their core product to Saudi Arabia due to which the market growth and market share of Ramzan Sons Electrical Industries (Regd.) have been increasingly rising comparing to their competitors. (See Exhibit 2 &3)

Conclusion:
Ramzan Sons and his management team appreciates the current performance of their company as now orders that was getting late before ISO 9001-2008 quality certifications complete and dispatched on time because inventory system has been implemented at the organization. Because of inventory maintaining of three types 1. Raw material 2. W.I.P and 3. Finish goods According to inventory supervisor, there is no more shortage of inventory as management fulfils the required short material needs in time due to proper systematic at Ramzan Sons Electrical Industries (Regd.).

EXHIBIT 1 Process of sun Rise Pump Company after ISO 9001-2008:

Raw Material

Casting

Kharad

Motor Winding

Quality Check Fitting

Quality Check Packing

Final Product Ready for Supply

Sources: Company Department Supervisor.

EXHIBIT 2 Industry Analysis: Market Share

MARKET Share
Golden Pump Sun rise Pump Eagle Pump Shamroz Pump 3% 4% 5% 23% Sre Pump Falcon Pump Gv Pump Flow pak Pump Flow Pump

16%

9% 4% 17%

19%

EXHIBIT 3 Increase in Sales after the Implementation of ISO 9001-2008

Sales of the years

30,000,000.00 25,000,000.00

20,000,000.00

Sale

15,000,000.00 Rupees 10,000,000.00

5,000,000.00

2005 2006 2007 2008 years 2009 2010 Jun-11

EXHIBIT 3 Organizational Structure at Sun Rise water Pump:

CEO Rafaqat Ali

GM Khalid

Finance Manager M.Awais

Marketing Manager Saqib Ramzan Production Manager Abdul Rehman

Quality Supervisor Naveed Chandyo

Packing supervisor Rehmat Ali

Winding supervisor Faisal

Kharad supervisor Khalid