ON

“IMPLEMENTATION OF TQM”

Submitted By: - Submitted To:-

MAMTA MEENA

MBA IV SEM-HR
Roll No-520849241 Asst. Professor,

Pace Academy-LC-Code(01857)
(Affiliated To Sikkim Manipal University Health Medical & Technological
Sciences, India

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 ACKNOWLEDGEMENT

Mamta Meena student of, SMU-KOTA successfully completed the training in

Shriram Rayons KOTA, Unit of DCM Shriram Industries Ltd.

With deep sense of gratitude, I extend sincerest thanks to my project guide Mr. Mr.
K.R.K. Raju (Dept. Manager) for giving me the pleasure to present this project
report. His worthy guidance and support, helped me through the project preparation.

I am also grateful to Mr. (Mani Menon) who provided help in gathering information
and project preparation.

Sincerest thanks to Mr. K.R.K. Raju and B.L. Bhandari who provided me with
invaluable direction and encouragement.

I would like to express my sincere thanks to my academic guide Mr. Sohan Sharma
(Faculty of Management) guidance & coperation for the successful completion of
the report.

I also indebted to the director of our and all other faculty members for all the
encouragement, inspiration & valuable suggestions as & when required.

I dedicate my satiated esteem toward staff of the department for their support and
guidance.

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 DECLARATION

I here by declare that the project report entitled

Company Specific Project on. “IMPLEMENTATION OF TQM”

Submitted in partial fulfillment of the requirements for the degree of

Masters of Business Administration to Sikkim Manipal University,
India, is my original work and not submitted for the award of any
other degree, diploma, fellowship, or any other similar title or
prizes.

Place: Kota Mamta Meena

Roll. No.: -520849241
MBA IV SEM- HR

Chapter 1
Company Profile

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 History

DCM Shriram Industries Ltd. Rich and versatile entrepreneurial

legacy of over hundred years old house of Shriram, the founder of
this illustrious house, Sir Shriram was a man of great integrity
who laid down the stamp of his personality upon the whole tenure
of Indian Industry.

Starting with a textile unit, Delhi Cloth Mills –DCM, a name that acquired an abiding
value in the years that followed. DCM Ltd. diversified into various areas and
developed into a leading industrial empire of India under the stewardship of industry
leaders, Dr. Bharat Ram, Dr. Bansi Dhar and Dr. Charat Ram.

On 1st April, 1990, the DCM conglomerate was reorganized into four new
companies and thus came into being –the DCM Shriram Industries Ltd.

headed by Dr. Bansi Dhar. Human resource development, teamwork and employees
participation are the key thrust areas of management. Customer satisfaction is the
prime force of entire enterprise. We have won many safety awards for last many
years from the ministry of labour, government of India.

The unit has taken a number of steps for implementing and controlling measures
towards pollution and environmental control from its inception. Rajasthan State
Pollution Control Board has given the award for excellence in pollution control
compliance. To keep pace with the current stringent air pollution control standards,
the company has installed two electrostatic precipitators on boiler stacks.

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While the progress made by DCM since beginning in 1989 may largely be attributed
to its, policy of diversification over the years into new fields other significant factors
have contributed the culture inculcated by the company which emphasizes on ethical
values at all levels of operations.

Organizationally, the company has evolved a successful structure that permits

operations with centralized review and control.
The companies policy of promoting secularism and merit in all personal matters has
held to build a team of professional managers and competent employees are the
most important asset in its economic activity and this has with passage of time seen
the implementation of various welfare schemes and built up the feeling that
employees, now numbering over-are considered as part of one family-the DCM.

DCM Shriram Industries Ltd. Rich and versatile entrepreneurial legacy of over
hundred years old house of Shriram, the fonder of this illustrious house, Sir Shriram
was a man of great integrity who laid down the stamp of his personality upon the
whole tenure of Indian Industry.

Shriram Rayons (a unit of DCM Shriram Rayons Industries Ltd.) was established in
1965 with technical know how from be a unit Fibre Inc., USA for manufacturing high
tenacity Rayon Tyre, Cord and Fabric for industrial applications. The unit has been
winning National Safety Awards since 15 years consecutively. Recently they have
implemented the Total Quality Management.

It will helpful in improve the finished product quality in a better way and consistency
in their finished product quality. Shriram Rayons is earning valuable foreign currency
by exporting 93% of its products to the foreign buyers like:

East and West Europe countries, South East Asian countries, Australia and North
East African countries. The training at Shriram Rayons was a very nice experience,
where closely observed the functions and importance of all functional areas of

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management principles and practices are considered. To maintain the tremendous
Export performance level, Shriram Rayons maintains the production level very high.

For that purchase department work very efficiently. Shriram Rayons production
depends mainly upon Import of Raw material like WOOD PULP; SULPHUR Shriram
rayon has systemized procedure for purchasing the material and machines.

Purchasing of various equipment, raw materials and other objects according to their
need in industry by considering also the quantity, cost and delivery facility of material
is done in this department.

Purchase department Fulfill the need according to their urgency. Purchase

department has divided in seven buyer groups. They allocate their resources
properly in the efficient manner.

So that optimum utilization has achieve Shriram Rayons takes effective steps to
improve the efficiency of the purchase department like vendor master approval,
vendor rating time to time, to educate the vendors about ISO-9002 and other new
technologies in market.

They do the on line negotiation from the vendors. It saves the time of both the
parties. The main objective behind the planned and controlled procurement
processes are: To prioritize critical materials and services which affect the finished
product quality? To constantly improve the quality, consistency of the purchased
materials, services and cost effectiveness of our procurement process.

AN INTRODUCTION TO DCM SHRIRAM INDUSTRIES

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The year 1889 saw the birth of Delhi Cloth Mills, the first unit of the company, which
has grown in to one of India’s largest organization over the years. The products
manufactured range from textiles, sugar cubes, Rayon Tyre Cord Fertilizers,
Vanaspati, Chemicals, Engineering electronic Goods, Vehicles, Containers.
The year 1990 brought in to existence a new company namely “DCM Shriram
industries limited” with the division of erst while DCM Limited into four companies,
foe better management and responsibilities. Today following units are under the
DCM SHRIRAM GROUP
UNIT LOCATION PRODUCTS
SHRIRAM RAYONS KOTA RAYON & NYLON YARN
FABRIC, CCL4
CS2 CHAFER, DIPPED
YARN CORD, FABRIC
ANHYD.SOD. SULPHATE.
DAURALA SUGAR SUGAR LIQUOR,CUBE
WORKS
DAURALA ORGANIC LTD. DRUG INTTERMEDIATE
D(-) ALPHA PHENYL N
GLYCINE CHLORIDE
HYDROCHLORIDE
ALLIED CHEMICALS
DCM SHRIRAM LEASING & DELHI LEASING &FINANCE
FINANCIAL SERVICES
INDITALTENTORIA LTD. ALWAR COTTON &YARN
DYEING UNIT
DCM HYUNDAI LTD. MADRAS MARINE FREIGHT
CONTAINERS.

ORGANISATION STRUCTURE

DCM Shriram Rayons, the organization is big, total number of employees is 1205.

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Categories of employees in Shriram Rayons

OFFICERS:Sr. VICE PRESIDENT

VICE PRESIDENT (Engg.)

G.M (Production &Commercial)

SENIOR MANAGERS

MANAGERS

Dy. MANAGERS

Asst. MANAGERS

DY. SUPDT

OFFICER

JR. OFFICER

SUBORDINATE STAFF: -

SR. SUPERVISOR/SR.FOREMAN/SR.O.A/CHEMIST A

SR.SECURITY INSP

SUPERVISOR/ FOREMAN/STENOGRAPHER/SECURITY

INSP. /O.A/ CHEMIST/SR. DRAUGHTMAN

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 SR. CLERK/DRAUGHTSMAN/STENOGRAPHAER/ASST.SEC

INSP./ SR.TESTER

CLERK/TYPIST/ DRAUGHTMAN / TELEPHONE OPERATOR

WORKER: -

HIGHLY SKILLED

SKILLED

SEMI SKILLED

UNSKILLED

Organization Chart
Alok B. Shriram
DMD

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 K. N. Rao
Executive Director
Operation Rayon

V. K. Jhingon
Sr. VP (Mfg.) & RH

Viscose/ Spinning/ Textile Engg. Quality Comm. Personnel

Accounts
spin bath auxilaries dipping assurance Admn
O.P. Gupta
&IRAshok
B.N. Govind S. K. VP (engg.) Kireet V.K. Dalmiya
Dwivedi Kumar Agarwal Joshi Jaitly D.KMgr. A
GM DGM AGM Sr. mgr GM
D.K. Rithaliya Rithaliya
Mgr. (P & IR) Mgr. A

Industrial relations Personnel

M.P. Jain Anil Rohtagi K. C. Chaturvedi K.R.K. Raju B.L. Bhandari

Officer Dy. Supd. ‘B’ Jr. Officer Dy. Supd. ‘B’ Dy. Supd. ‘B’
Estb. Functions Welfare activities PF/ ESI Personnel IT/ Persl. file
Recruitments Contract labour

C.P. Nama S.N. Sharma Bhanwar Singh Rajpal (Sr. Supervisor)

Clerk Sr. Compounder Sr. Clerk G.S. Naruka (sr. clerk)
Payroll N. Kunjan Canteen R.K. Sharma (Sr. clerk)
processing Compounder Time office

Mani Menon
Tr. O.A.
ACHIVEMENTS AND AWARDS Salary bills
Settlements

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I.S.O CERTIFICATION

Shriram Rayon, the first Rayon Tyre Cord Plant to have the ISO-9002 Certificate:-
Quality is the key that determines the success of any business organization. Policy
of Shriram Rayon, a unit of DCM Shriram Industries for providing good quality
products at competitive prices and extending maximum customer satisfaction by
active participation of all its employees has finally been rewarded. RWTUV of
Germany has awarded the unit the converted ISO-9002 accreditation.

Although the sales success depends on various factors such as the nature of the
product, the image created by advertising, the socio cultural background of
customers and credit facilities, it is, as Shriram Rayons has proved, the quality of the
product and of the services offered that assures repeated and sustained sales.

Shriram Rayons, Kota manufactures high tenacity rayon tyre yarn, tyre cord, fabric,
inorganic chemicals and Industrial Nylon fabrics. Since the unit is exporting this
substantial production, the ISO-9002 certification will give it an edge over its
competitors.Shriram Rayons having successfully weathered the storm caused by the
technical obsolescence of Rayons due to switchover to Nylon-6 by the automobile
industry is now the highest foreign exchange earner for DCM Shriram Industries Ltd.

PRODUCT

PRODUCTS EXPORTED

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The main products produced in Shriram Rayon are High Tenacity Rayon Tyre Yarn
Cord and Fabric (Grey and Dipped).

These are essentially an industrial intermediate product used in the manufacture of

tyre and are the material that gives the tyre its strength and fatigue resistance
properties. The main consumer of this product is the east and West Europe
countries, south East Asian countries, Australia and North East African countries.

DIVERSIFIED PRODUCTS
In the diversified products range, Dipped Cord and Fabric are sold to the
manufacturer of scooters tyres, v-belts and hoses. Yarn and Cord are sold for use in
industrial stitching and strapping. Chaffer Fabric is being used for reinforcing the
bead of tyres and is sold to the tyre manufacturers.

ONE OF THE BIGGEST CONVERTERS OF:

Nylon tyre Cord, Polyester Tyre Cord, Industrial Fabrics, Dipped Twines, Dipped
chafer fabric, dipped nylon fabric, dipped nylon fabric of non-woven type.

PRODUCTS / SERVICES
The plant produces tyre yarn, cord and fabrics for automobiles manufacturers. In the
country as well as for abroad. The plant manufacturing facilities for dipping rayon,
Tyre yarn, cord and fabric and also nylon chafer fabric both gray and dipped.

The plant also produces chemicals such as carbon disulphide, carbon tetra chloride
anhydrous sodium Sulphate and a consumer product “Wonder wipe” a cellulose
sponge mop introduced for the first time in India with technology developed by our
own R&D cell. Quality of rayon tyre yarn and fabric produced by Shriram Rayons
has been widely accepted in the international market.

They are committed to excellence, modernization and growth and have definite
plans for diversification. Tyres are made up of nylon cot and the advantage of using

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 nylon in tyres is that it can carry more load and suit Indian road conditions where as
in case of Rayon total strength of tyres is increased.

High speed to the automobiles and high efficiency is provided 93% of products made
are exported and imported to all the tyre companies of the world.
In India nylon tyres are used.

Tyre Yarn –
The unfinished rayon fibers and called yarn.

Tyre cord –
The cord made by combining two or more yarn threads by twisting technology to
make it more strength.

Grey fabric –
The fabric is made by fabrication process like weaving the number of thread
together.

Dipped fabric –
The fabricated rayon is dipped in rubber solution to make it durable.

PLANT:

Shriram Rayons a unit of DCM Shriram industries was established in 1962, originally
under the name of Rajasthan Rayons, and production commenced from 1965.

The technical know how for plant was provided by one of the leading fiber
manufacturer M\S Beau nit Fiber Inc. USA.

The total outlay of the plant of Rs.12 crores was met through the United State
Agency for International Development (U.S.A.I.D.)

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The installed capacity was initially 5000MT/YR. A license was obtained
subsequently to expand this capacity to 7000MT/YR by suitable modification and
addition to plant. The present capacity thus is 700MT/YR.

At present the unit comprises of the following –

• Rayon Tyre Yarn Plant
• Carbon Disulphide Plant
• Carbon Tetrachloride Plant
• Anhydrous Sodium Sulphate
• Kiddle Dipping Plant
• Fabric Dipping Plant
• Chafer Fabric Production
• Thermal Power Plant
• Pirna Rayon Tyre Yarn Plant
• Nylon Dipping Unit
• Viscose Filament Yarn

Culture:

Shriram Rayons does not involve in the fully in business but focus in the culture
activity too. They organize many cultural activities time to time in every year.
“ The organization move towards a culture of results orientation value for
money and time at speed in business process.”
Cultural activities: - Shriram Rayons celebrate all the festivals and national days.

Festivals:
• Holy
• Raksha bandhan
• Janmasthami
• Vijaya Dasmi
• Diwali

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 • Durga puja
• Teej
• Ganesh chaturthi

National days:
• Republic day
• Independence day
• Children day
• National safety day
• Shriram Jayanti

CULTURE AND ITS ASPECTS

 Professionalism

 Commitment to Quality

 Excellence with Economy

 Cost Consciousness

 Human Resource Regarded Aid Valuable Assets

 Emphasis on Teaching of Development

 Preference to Human Value

 Management By Participation

 Open Door Policy in Sharing Ideas and Suggestions

 Cordial Environment

 Customer Focus
 onors and Reward

Highlights

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Building schools, hospitals, vocational and
community centers. Connecting villages in the
sugar factory area with medalled roads and
providing other infrastructure such as streetlights,
solar lighting, culverts, etc.

Connecting villages in the sugar factory area with medalled roads and providing
other infrastructure such as streetlights, solar lighting, culverts, etc. Conducting
immunization drives.

Popularizing and subsidizing biogas plants,

smokeless chulhas and solar cookers to meet
local energy requirements and protecting the
environment. Adopting villages for community
development. Providing subsidies to farmers
for purchase of agricultural input. Helping to improve the quality of life of our workers
is very much a part of the basic management philosophy at DCM Shriram Industries.
Facilities like housing, education, Medicare, family welfare, libraries and reading
rooms, play grounds and cultural centers for employees and their families are
provided at all our units.

Highlights

 Workers' clubs equipped with reading room,

sports room, gymnasium etc. to encourage
social interaction.

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  In-house facilities for regular sports and cultural events at all units, to
encourage participation by all employees and their families.

 Sponsoring of national sporting events, like

the DCM Shriram Air Force Open Golf
Championships & DCM Shriram All India
Hockey Tournament.

 Annual Shanker Shad Mushaira with

participation of distinguished poets.

 Organizing free family planning & welfare

camps in rural areas in collaboration with
the local administration on a regular basis.
 Operating charitable hospitals for the workmen as well as people of the
nearby villages.
 Maintaining green belts in and around manufacturing sites.

Social Responsibility:

DCM Shriram Industries Group has always been dedicated to meeting their
responsibility towards protection of environment and conserving scarce natural
resources. This has prompted us to adopt the following measures:

 Boilers modified for multi-fuel arrangement and can be run on various

renewable fuels, viz., bagasse, rice-husk and eco-friendly bio-gas (methane).
 Effective flue gas wet scrubbing system using in-house technologies to
release pollution free flue gases.
 ESP's
 Bio-methanation and secondary Plant set up to obtain eco-friendly biogas
from distillery effluent, using in-house technologies.

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  Effluent Treatment Plants set up in all factories to not only control discharge
of pollutants within prescribed limit but also generates bio gas which is used
as a clean fuel in the boilers
 Green Belt in and around the factory and residential complexes.
 Minimizing energy and water consumption in processes.
 Yearly Plantation practice
 Newer technology are adopted to minimize consumption of energy and water
in the complex
 Bio compost plant provides eco-friendly manure to the farmers of the area.

It is our policy to maintain the wholesomeness of the environment and preserve the
ecosystem.
HEALTH & SAFETY:
Health and safety of employees and the public is of paramount importance to us.
 Shriram Rayons has won the National Safety Award for 15 Yrs.
 Organize regular training programs covering all aspects of safety and
hazardous operations.
 Assessment and elimination of potential hazards/risks to Safety, Health and
the environment, supported by regular safety audits and timely
implementation and maintenance of safety systems supported by periodic
drills and rehearsals.

PEOPLE

• Shriram Rayons, Kota has employees’ strength of approx. 1200.

• As said by Lala Shriram, “we have always looked upon the development of
the human resources as both crucial and the most rewarding task of
management. I believe that not machines or techniques, but human beings
are, and should be, our greatest care and concern.”

HUMAN RELATION

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 • Cordial industrial relations built on mutual respect and trust.
• Employee involvement through participative management ideas
generation, quality and productivity improvement.
• Activity Quality Circles and Shop floor councils.
• Management development activities including regular programs and
refresher courses conducted by in-house and external faculty,
participation in seminars, conferences and workshops. Sponsorship of
company personal for specialized training in India and abroad.
• Interactive employee communication through regular forums and
media.

DEDICATION

• Workers clubs to encourage social interaction.

• In house facilities for regular spots and cultural events at all
units, to encourage participation by all employees and their families.
• Sponsoring of national sporting events, like the DCM Shriram
Air Force Open Golf championship, DCM Shriram All India Hockey
Tournament, DCM
• Shriram National Squash Champion.
• Annual Shanker Shad Mushaira with participation of
distinguishes poets from India and abroad.

CO-OPERATION
• Building schools, hospitals, vocational and community centers.
• Connecting every village in the sugar factory area, with a metal road
and providing other infrastructure such as streetlights and lighting
systems.
• Organizing family welfare, x-ray, and dental and free eye treatment
camps.
• Conducting immunization drives.

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 • Popularizing and subsidizing biogas plants, smokeless chulhas and
solar cookers to meet local energy requirements and protecting the
environment
• Adopting of a village near Kota for community development.

Chapter 2:
Project Profile

TOTAL QUALITY MANAGEMENT

INTRODUCTION: - A role of management is to lead an organization in its day to day

operations as well as to maintain it as a viable entity into the future. Quality has
become an important factor to success in this latter strategic responsibility.

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.

In the late 1980s, providing customer satisfaction in customer terms becomes a

specific goal of business organization. Providing high quality was recognized as a
key element for success.

At the end of the twentieth century, business organizations were involved in what
has become a quality revolution. It began in Japan and has spread to other parts of
the world. It involves an entirely new way of thinking about and dealing with quality
that encompasses the entire organization.

This new approach has been given a variety of names viz., “SIX SIGMA” at
Motorola, “Leadership through quality” at Xerox, “Perfect design quality” at

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Intel and “Total quality control” at Hewlett-Packard, but more often referred to as
“Total Quality Management”.

DEFINITION: - Total Quality Management (TQM) is a philosophy that involves

everyone in an organization in a continual effort to improve quality and achieve
customer satisfaction.

SALIENT FEATURES OF TQM APPROACH

1. Intense focus on the customer- both external and internal customers.

2. Concern for continuous improvement- quality can always be improved.
3. Improvement in the quality of everything the organization does- not only
related to final product, but also to services, response to complaints and the
like.
4. Accurate measurement of every critical performance variable in the
company’s operations.
5. Empowerment of employees- TQM involves the people on the line in the
improvement process. Teams are empowered for finding and solving
problems.

SIX BASIC CONCEPTS OF TQM

1. A committed and involved management to provide long-term top-to-bottom

organizational support.
2. An unwavering focuses on the customer, both internally and externally.
3. Effective involvement and the utilization of the entire workforce.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.

PRINCIPLES OF TQM

Total quality management stresses on three principles:

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 1. CUSTOMER SATISFACTION: - It is a relative that varies from one customer
to another. Also a customer may be satisfied with today’s products but not
satisfied in the future. For example, while one customer may consider a
FORD automobile perfectly satisfactory, another may not. Each person
defines quality in relation to his or her own needs and means at a particular
point of time.
DIMENSIONS FOR CUSTOMER SATISFACTION
• Fitness for use
• Reliability and life of product
• Value for money
• After-sales-services and support
• Packaging
• Customer information and transit
• Maintainability
• Speed of service (delivery)
• Company image
• Customer confidence in the organization

2. EMPLOYEE INVOLVEMENT: - This in quality management is crucial in

achieving and sustaining high levels of quality. Employees may have to be
empowered to take preventive and if necessary corrective actions without
management approval. Employees must be involved in quality management
by encouraging them to use quality controls tools and techniques to track
performance and identify areas needing improvement. Employee training and
motivation are essential for achieving and sustaining high levels of service
quality.
CONTINUOUS IMPROVEMENT: - It is a never-ending process and is driven by
knowledge and problem solving.
From the producer’s viewpoint, variation from specifications cannot be
tolerated. The producer must specify quality attributes of the product or the

22
 service as carefully as possible and then strive to meet those specifications.
While improving the process overtime, producers should continuously strive
to improve quality that is doing a better job of meeting customer needs by
reducing variability in all processes and by introducing new products when
needed. As producers gain a better understanding of customer expectations
and as better technology becomes available, quality can be continuously
improved.

ELEMENTS OF TQM
To be successful implementing TQM, an organization must concentrate on the eight
key elements:

1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication

Key

I. Foundation

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TQM is built on a foundation of ethics, integrity and trust. It fosters openness,
fairness and sincerity and allows involvement by everyone. This is the key to
unlocking the ultimate potential of TQM.

These three elements move together, however, each element offers something
different to the TQM concept.

1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is
a two-faceted subject represented by organizational and individual ethics.
Organizational ethics establish a business code of ethics that outlines guidelines that
all employees are to adhere to in the performance of their work. Individual ethics
include personal rights or wrongs.

2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to

the facts and sincerity. The characteristic is what customers (internal or external)
expect and deserve to receive. People see the opposite of integrity as duplicity.
TQM will not work in an atmosphere of duplicity.

3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the
framework of TQM cannot be built. Trust fosters full participation of all members. It
allows empowerment that encourages pride ownership and it encourages
commitment. It allows decision making at appropriate levels in the organization,
fosters individual risk-taking for continuous improvement and helps to ensure that
measurements focus on improvement of process and are not used to contend
people. Trust is essential to ensure customer satisfaction. So, trust builds the
cooperative environment essential for TQM.

II. Bricks

Basing on the strong foundation of trust, ethics and integrity, bricks are placed to
reach the roof of recognition. It includes:

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4. Training - Training is very important for employees to be highly productive.
Supervisors are solely responsible for implementing TQM within their departments,
and teaching their employees the philosophies of TQM. Training that employees
require are interpersonal skills, the ability to function within teams, problem solving,
decision making, job management performance analysis and improvement, business
economics and technical skills. During the creation and formation of TQM,
employees are trained so that they can become effective employees for the
company.

5. Teamwork - To become successful in business, teamwork is also a key element

of TQM. With the use of teams, the business will receive quicker and better solutions
to problems. Teams also provide more permanent improvements in processes and
operations. In teams, people feel more comfortable bringing up problems that may
occur, and can get help from other workers to find a solution and put into place.
There are mainly three types of teams that TQM organizations adopt:

A. Quality Improvement Teams or Excellence Teams (QITS) - These are

temporary teams with the purpose of dealing with specific problems that often re-
occur. These teams are set up for period of three to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain
problems and also to identify and overcome causes of problems. They generally last
from one week to three months.

C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled
workers who share tasks and responsibilities. These teams use concepts such as
employee involvement teams, self-managing teams and quality circles. These teams
generally work for one to two hours a week.

7. Leadership - It is possibly the most important element in TQM. It appears

everywhere in organization. Leadership in TQM requires the manager to
provide an inspiring vision, make strategic directions that are understood by
all and to instill values that guide subordinates. For TQM to be successful in

25
 the business, the supervisor must be committed in leading his employees. A
supervisor must understand TQM, believe in it and then demonstrate their
belief and commitment through their daily practices of TQM. The supervisor
makes sure that strategies, philosophies, values and goals are transmitted
down through out the organization to provide focus, clarity and direction. A
key point is that TQM has to be introduced and led by top management.
Commitment and personal involvement is required from top management in
creating and deploying clear quality values and goals consistent with the
objectives of the company and in creating and deploying well defined
systems, methods and performance measures for achieving those goals.

III. Binding Mortar

7. Communication - It binds everything together. Starting from foundation to roof of

the TQM house, everything is bound by strong mortar of communication. It acts as a
vital link between all elements of TQM. Communication means a common
understanding of ideas between the sender and the receiver. The success of TQM
demands communication with and among all the organization members, suppliers
and customers. Supervisors must keep open airways where employees can send
and receive information about the TQM process. Communication coupled with the
sharing of correct information is vital.

For communication to be credible the message must be clear and receiver must
interpret in the way the sender intended.

There are different ways of communication such as:

A. Downward communication - This is the dominant form of communication in an

organization. Presentations and discussions basically do it. By this the supervisors
are able to make the employees clear about TQM.

B. Upward communication - By this the lower level of employees are able to

provide suggestions to upper management of the affects of TQM. As employees

26
provide insight and constructive criticism, supervisors must listen effectively to
correct the situation that comes about through the use of TQM. This forms a level of
trust between supervisors and employees. This is also similar to empowering
communication, where supervisors keep open ears and listen to others.

C. Sideways communication - This type of communication is important because it

breaks down barriers between departments. It also allows dealing with customers
and suppliers in a more professional manner.

IV. Roof

8. Recognition - Recognition is the last and final element in the entire system. It
should be provided for both suggestions and achievements for teams as well as
individuals. Employees strive to receive recognition for themselves and their teams.
Detecting and recognizing contributors is the most important job of a supervisor. As
people are recognized, there can be huge changes in self-esteem, productivity,
quality and the amount of effort exhorted to the task at hand. Recognition comes in
its best form when it is immediately following an action that an employee has
performed. Recognition comes in different ways, places and time such as,

 Ways - It can be by way of personal letter from top management. Also by award
banquets, plaques, trophies etc.
 Places - Good performers can be recognized in front of departments, on
performance boards and also in front of top management.
 Time - Recognition can be given at any time like in staff meeting, annual award
banquets, etc.

NEED FOR TQM

TQM adds value to the services offered to the customers.
All personnel are involved, which improves motivation and commitment.
TQM provides assurance that performance and processes are well understood.

27
TQM is economic in the long term to both the company and its customers.

THE SCOPE OF TOTAL QUALITY MANAGEMENT

The three core principles of the total quality namely (a) focus on the customer (b)
participation and team work and (c) continuous improvement and learning are
supported and implemented by:
An integrated organizational infrastructure
A set of management practices and
A wide variety of tools and techniques

INFRASTRUCTURE: It refers to the basic systems of management that are

necessary to function as high-performing organization. The elements of an
infrastructure that support the core principles of the total quality are:
Leadership
Strategic planning
Human resource management
Process management
Data and information management

PRACTICES: Practices are those activities that occur within a management system
to achieve high performance objectives. Examples of activities and the
corresponding practices are listed below:

28
 ACTIVITIES PRACTICES
Reviewing company performance Leadership
Determining employee satisfaction Human resource management
Co-ordinating design and Process management
production/delivery processes to
ensure trouble-free introduction
and delivery of products and
services

TOOLS: Tools include various graphical and statistical methods to plan work
activities, collect data, analyze results, monitor progress and solve problems. For
example, a chart showing trends in defects in manufacturing as workers progress
through a training program is a simple tool to monitor the effectiveness of the
training program.

29
 BENEFITS OF TQM

TANGIBLE BENEFITS INTANGIBLE BENEFITS

Better product quality
Productivity improvement
Reduced quality costs
Increased market
Increased profitability
Reduced employee grievances
Continuous
quality
improvement
Effective team work
Enhancement of job interest
Improvement in human relation
work area morale
Participation culture
Customer satisfaction
Enhanced problem solving capacity
Improved corporate health and
character of the company
Better company image

Higher prices
Improved Increased
competitive revenue
position Increased
market share Increased
profits
Increased defect-free Reduced
output cost of
operations

30
TOOLS OF TQM: There are various tools for total quality management. But the
researcher has focused on three aspects viz. six sigma, daily work management
and 5s.

T Q M– F o c u s A re a s

5S

S ix S igm a G ree n D a ily W o rk

B e lt P ro jec ts M ana ge m ent

BENEFITS OF USING SIX SIGMA

Six Sigma allows achieving the constancy of purpose that is the secret to success,
by focusing efforts on understanding the variations in processes and defects that
results. Basic results are:

• Money
• Customer satisfaction
• Quality
• Impact on employees
• Growth
• Competitive advantage

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Money:
Money is generally most important reason for using Six Sigma for processes that are
inefficient, waste time and other resources.
Here are few questions to consider:

 What is the value of scrap?

 What is the cost of rework?
 What is the cost of excessive cycle times and delays?
 What is the cost of business lost because customers are dissatisfied with
product or services?
 What is the cost of opportunities lost because one didn’t have time or
resources to take advantage of them?
 What is the total cost of poor quality in an organization?

One should know the answers of these questions in terms of dollars. By knowing the
answers one realizes importance of reducing process variation and defects. If the
person does not know the answers then he need to get knowledge that gives the
power of making necessary changes.

Customer satisfaction:
The better any organization handles its customers (current & potential) the healthier
its revenue will be. But how can one satisfy customer most effectively?
Six Sigma focuses on critical to quality (CTQ) expectation of customers: that what
matters most. By using Six Sigma management methods, company can target the
vital few factors in processes that are allowing variations and defects that keep
organization away from meeting the CTQ expectations of customers.

Organization can better align business goals with the requirement and expectations
of customers. Six Sigma helps to get there by showing how to find the “breakthrough

32
points” in processes. That means not only identifying the waste streams in
processes, but also understanding all elements that create them.

Quality:
Another reason for using Six Sigma is the value and impact of committing to quality
as a goal in a very practical way. People who might not understand and appreciate
other quality initiatives are more likely to recognize the value of Six Sigma, because
the focus is essentially simple-to reduce or eliminate mistakes.
Quality is an ideal of extreme power. The following advantages on considering on
quality:

 It inspires employees.
 It instills a culture and an attitude
 It creates an image in market and the community.
 It attracts investors.

And Six Sigma is not just quality, but a Six Sigma level of quality. That is closed to
perfect 99.997% perfection Why not just 99.379% four sigma? That’s level of quality
achieved by many major companies. Because that goal is not high enough. It’s been
calculated that if 99% were good enough, we would be accepting the following:

 Every hour the postal service would lose 20,000 pieces of mail.
 Every day our drinking water would be unsafe for almost 15 minutes.
 Every week there would be 5,000 surgical operations that go wrong in some
way.
 Every month we would be without electricity for almost seven hours.

Impact on employees:
There are also benefits of six sigma that don’t translate into dollar- at least not
directly. The effect on employees can be powerful. Let’s briefly consider a few of
those effects. Six Sigma inspires employees. When the company is committed to

33
improving processes, to meeting customer expectations, to cutting coasts,
employees will naturally feel motivated to do better. After all how many of employees
want to do their jobs badly, to waste time and money, to fail to meet the expectations
of his customers?

They naturally empathize with customers, so they’ll feel more positive about the
company when it focuses on the customers.

Six Sigma promotes professional development for employees. The more employees
know about six sigma techniques and tools and the more management can
encourage them to think critically about processes, the more competent they
become. That competence not only helps company, but also makes employees
more valuable on the job market

which is an increasingly important consideration. Six Sigma concentrates on

systematic improvement of processes. That approach will appeal to the logic of
employees, many of whom have problem wondered why certain processes work in
ways that seems illogical.

How many employees have managers heard complaint about inefficient processes?
Through six sigma, manager’s providing them with opportunities to improve those
systems that confuse and frustrate them. Those are some basic benefits of six
sigma for employees. And definitely have an impact on bottom line.

Competitive advantage:
Six Sigma allows one’s to become more competitive-regionally, nationally or
globally. At this point, one probable don’t need any justification for that statement. A
company that reduces its cost of doing business, meets the expectations of its
customers more effectively, earns a reputation for quality, and fosters a culture of
dedication and pride will certainly enjoys advantages over its competitors. It can
provide higher quality outputs at a lower cost. If one needs further proof of

34
competitive advantages of Six Sigma, just check out the gains achieved by the
companies that have invested in implementing Six Sigma.

 At GENERAL ELECTRIC, Six Sigma added more than $ 2 billion to the

bottom line in 1999 alone.
 MOTOROLA saved more than $15 billion dollars in the first 10 years of its Six
Sigma efforts.
 ALLIEDSIGNAL reports saving $1.5 billion through Six Sigma.

Nobody can promise that one can cut costs by billions; performance results through
Six Sigma are unique for each company. But it’s been estimated that one should
expect a return on investment of three or four times the cost of implementing Six
Sigma. That should give company a significant competitive advantage.

ROLES AND RESPONSIBILITIES

It takes courage to decide to do Six Sigma. It takes courage to implement it. To use
the Six Sigma techniques and tools, to preserve, to make changes. One can’t find
that courage in a methodology: one has to encourage and promote it in the people
who use Six Sigma.

The success of Six Sigma relies on the people who are responsible for
implementing. Six Sigma provides some powerful techniques and tools, but success
depends on the people who play the primary roles and assume the central
responsibilities for putting those techniques and tools to work for organization.
Dennis Sester, senior vice president of MOTOROLA services has put it very
succinctly: “Six Sigma is not a product you can buy, it is a commitment.”

Six Sigma necessarily upsets the status quo. After all, if one says that they are doing
Six Sigma, there’s going to the major interruption or even uproar- as job descriptions

35
are redefined and activities are radically changed. This must happen to make any
real, permanent changes. Six Sigma cannot be managed on the sidelines: it’s a full
contact sport that sets new rules and aims for much higher scores. Everyone is a
player, regardless of individual company positions.

However it’s important to point out that not everyone is slated for full Six Sigma
responsibilities one has to choose well who will run projects, participate on teams,
and pursue the objective using various Six Sigma tools like metrics and other
statistical measurements. Company needs the right mix of the right talents to refocus
on Six Sigma projects.

KEY PLAYERS

So who are the key players and what their roles. Basically they are five:
 Executive leaders: to commit to Six Sigma and to promote it throughout the
organization.
 Champions: to fight for the cause of black belts and remove barriers.
 Master black belt: to serve as trainer, mentor and guide.
 Black belts: to work full time on project.
 Green belts: to assist black belts part time.

It’s vital to understand and define key operational roles from the start. All the key
players should know what’s expected of them and how all the roles work together in
the Six Sigma initiative. Each of the roles has a clearly defined set of responsibilities.

EXECUTIVE LEADER
The key role of executive leaders is to decide to do Six Sigma and, to publicly
endorse it throughout the organization. Company leaders must kick off and reinforce
the comprehensive scope of Six Sigma to engage everyone’s support and
participation. It’s important of Six Sigma to be a company wide initiative that point
cannot be over emphasized and as they begin this business changing enterprise. It

36
rallies the employees, it ends legitimacy to their projects, and it sends the clearest
signal that Six Sigma and targeted outcomes are major company priorities.

There are few essential aspects that help build and round out the foundation for
successful executive leadership responsibility.

 Determination: for starters, they need to show determination. They need to

be resolute in believing that Six Sigma will succeed. So after the initial
fanfare of introducing Six Sigma, executive should be determined to get the
training, understand the savings, perpetuate the use of metrics, showcase
black belt achievements, mark key milestones, and keep the overall initiative
on track. From the top down and throughout all points in the organization,
executive leaders can inspire and promote a Six Sigma culture that
continually produces results.

 Confidence: executives need to actively display confidence not only in the

Six Sigma method, but also in the people charged with making it work. By
actively showing their confidence with rewards and incentives, company
leaders inspire sustained commitment and effort on the part of employees.
When an executive lets employees know that he or she believes in them,
supports their success, and applauds their talents, employees will respond in
kind. Confidence is a powerful motivator.

 Integrity: executive must back it all up with integrity. They need to do what
they say they’re going to do. This inspires ever-increasing confidence among
project teams that an executive’s word is good and that there’s substance
behind the statements. By following through on commitments and staying
true to a stated purpose, executives demonstrate a high standard of ethical
leadership. Integrity stimulates loyalty, and respect, both of which are
motivators for employees across the organization.

37
  Patience: executive leaders are responsible for practicing and modeling
patience. This may seems obvious, but it’s very hard to do in a business
environment that demands instantaneous result and immediate answers. Six
Sigma projects take time; skipping steps or rushing the process will
jeopardize the results.

MASTER BLACK BELT

The master black belt serves as trainer, mentor and guide. He or she teaches the
roles; helps to select the right people and assists in screening and selecting projects
that will best achieve the hidden dollars.

Once organization has Six Sigma initiative well under way, once they’ve established
all necessary elements, designated and trained people in their roles, started
projects, and garnered some results, they can graduate members of teams to the
ranks of the master belts. The master black belt is an expert in Six Sigma tools and
tactics and a valuable resource in terms of technical and historical expertise.

Teacher, mentors and lead agent of change, the master black belt ensures that the
necessary infrastructure is in place and that black belts are trained. A master black
belt is an invaluable asset as company begins Six Sigma initiative coordinating and
collaborating with upper management, advising and coaching black belts, and
ultimately keeping- champions- focused on what’s important in selecting projects
and implementing Six Sigma.
BLACK BELTS
Black belt work full time on selected projects. As team leaders and project heads,
black belts are central to Six Sigma success. They are trained to dig into the chronic
and high impact issues and fix them with Six Sigma techniques and practices. They
fix the problem, get rid of defects and find the money.

The black belt’s role is one of the great responsibility and discipline; it is the
backbone of Six Sigma culture. Although champions are responsible for getting the

38
bottom line results, since they select the projects and monitors progress, black belts
are responsible for doing the work. They relentlessly pursue the project objectives,
they strive to understand the causes and effects of defects, and they develop the
necessary steps to permanently eliminate them.

They are selected to solve problems within the Six Sigma framework and they are
trained to be technical leaders in using Six Sigma tools and methods to improve
quality. Black belt manages risks, help set directions, and lead the way to quantum
gains in product or service quality.
SELECTING BLACK BELTS
First of all not every employee is a black belt candidate. It’s a full time discipline that
combines leadership ability, technical skills, some statistical knowledge, the ability to
communicate clearly and motivated curiosity. If one know the members in staff, their
skills sets, and their performance one can accurately determine who might be a
good candidate.
The sidebar, “Rating a Black Belt candidate” provides and organized approach to
evaluate employees in terms of their black belt potential.
GREEN BELTS
Green belts assist black belts in their functional area. They work on projects part
time usually in a limited specific area. They apply Six Sigma tools to examine and
solve chronic problems o projects within their regular jobs. In this way, knowledge is
being transferred and used in even narrow applications. They also help black belt to
accomplish more in less time.

The DMAIC method:

 Define
 Measure
 Analyze
 Improve control
 Control

39
Sometimes the methodology is applied without the define phase. People generally
prefer using a four phase MAIC sequence, but one should be familiar with the five
phase DMAIC sequence as well.

MAIC as “magic without G for guess work” as it is capable of creating and sustaining
remarkable data driven results that continually boost profitability levels.
MAIC/DMAIC is the key to the Six Sigma problem- Sigma solving method infact, it’s
fair to say it is the problem solving method.

Six Sigma, DMAIC/MAIC involves necessary steps in a sequence each of which is

essential to achieving the desired outcome. One can’t skip or jump around with the
four or five phases and expect to get credible results. By following each step in
proper order and completing the task for each. One can accurately understand,
evaluate and work on all aspects of the CTQ element influencing the given process
answer.

D- Define:
It’s important that one start Six Sigma by clearly defining the problem. That’s the
purpose of the define phase. First define the chronic “big” issues existing in
department or organization. It’s often useful to map processes, in order to better
understand them locate the problems. Then select a project to combat one or more
of them it’s critically important to define parameters of the project.

One needs to scope out the project and understand at the outset what one wants to
accomplish with it. Understanding its scope and sequence exactly defines project’s
rules how long it will run what are goals, and the tools and personnel in place to
achieve them.

Next, to hand over the project to black belts. They will build the project team to
further scope out the CTQ elements and then start solving the issues. Even though
any project necessarily is a limited event don’t limit the quality of results by not fully

40
knowing its scope and goal criteria. The more one know, the more likely they are to
find what they are looking for.

Central to the six sigma methodology is the use of a key equation that defines which
vital few factors need to be measured, analyzed, improved, and controlled for bottom
line results. The vital few factors are those factors that directly explain the cause and
effect relationship of the process output being measured in relation to the inputs that
drive the process.

Typically, there are half a dozen or fewer factors that most affect the quality of
outputs in that process, even if there are hundreds of steps in which a defect could
occur.

M-Measure phase:
For starting measure phase, one must first identify the crucial internal processes that
influence the CTQ measurements, which are the Y’s, the process outcomes. Once
people working know what they are, then they can measure the defects generated in
the process that profoundly affect the CTQ standard. So the example, if your
customer expects a certain standard at a certain price, you need to identify the vital
few factors that affect that expectation. This is crucial, since determining the vital few
allows you to concentrate your efforts and resources. Then you must measure the
impact of defects in those areas.

Defects are measurable characteristics of a process or its outputs that are not within
the acceptable customer limits or specifications. Once team members identify the
defects, they can then ask how much money company would save if they were
eliminated. In doing so, impact-relating improved quality with improved profitability.
There is a direct and measurable relationship between defects and dollars. In the
measure phase, one can figure out that relationship exactly.

41
The measure phase is completed when a black belt can successfully measure the
defect generated for a key process that affects the CTQ characteristics.

In the measure phase, the black belt conducts a measurements system analysis,
which includes gauge studies, and a through evaluation of capabilities of the
process.
The purpose of a gauge (gage) repeatability and reproducibility study (gauge R & R)
is to ensure that measurement systems are statistically sound. A gauge R&R
measures how is one measuring? So one know all aspects that measurement
systems are functioning properly and that they are getting maximum value for their
efforts.

After all, company is going to be investing a lot in rooting out the problems that
measurements reveal so it makes sense to be sure that they are accurate and
appropriate.

Gauge R&G repeats measurement under various conditions to test the measure
against these four essential criteria:

 Accuracy – How precise is the measurement?

 Repeatability – if the same person or piece of equipment measures the
same item, will the result be the same?
 Reproducibility – if other person or piece of equipment measures the same
item, will the result be the same?
 Stability – will accuracy, repeatability and reproducibility change over time?
The measure phase is all about mapping the process, evaluating the measurement
system, using metrics, and estimating the process baseline capability.

42
A-Analyze phase:
At the point, one tries to understand why defects are generated and then break
down what multiple reasons (again, the X’s) are identified as causing them. Put
another way, managers are their black belt teams will ask which inputs are affecting
the outputs.

In mapping and measuring process and identifying input variables that may affect
critical to quality attributes, teams probably come up with some assumptions about
relationship between business metric (critical to quality) that would affect it.

So now one formulates hypotheses and statistically test them to determine which
factors are critical to the outcome. This where the Analyze phase becomes a cycle
as long one goes through a series of hypotheses testing. The cycle consists of the
following steps:

 Develop hypotheses about cause(s)

 Analyze process and/ or data
 If a hypothesis is correct, add cause to the list of vital few. If the hypothesis is
incorrect, refine it and go to step or reject it and do the step one.

Hypothesis testing uses a series of detailed analyses to calculate the probability that
the factors that team’s identified as the vital few truly have must important impact on
the critical to quality outcomes. Then move from statistical conclusions to devising
practical solutions developing plans for taking corrective action.

When managers and their projects teams are in the Analyze phase, they are
continually brainstorming in a statistical sense they are challenging the status quo
and really looking into what vital few factors are influencing the outcome of a given
process eliminating the trivial many to reveal the significant few.

43
I-Improve phase:
After one have carefully (sometimes painstakingly) measured and analyzed the
situation they arrive at the existing point of actually testing theory to find an equation
to solve the problem. In the improve phase one confirms key variables and quantity
the effects of those variables on critical to quality outcomes.

As a result one can identify the maximum acceptable range of each variable to
ensure that measurement system can actually measure that variation. When one
reaches the Improve phase they can modify each variable so that is stays within the
acceptable range. When one can turn a defect on or off to truly improve both sides
of the Y=Y equation they can manipulate the vital few factor (X’s) to achieve the
outcome(Y) they want.

C-Control phase:
The control phase is where one maintains the changes made in the X’s in the
equation in order to sustain the improvements in the resulting Y’s. In this phase, they
continue to document and monitor processes via defined metrics and other
measurement to asses their capability over time. In some cases, the control phase
never exists, because one eliminates the problem entirely. Following the logical
sequence of DMAIC the control phase allows to maintain a higher level of quality
and productivity.

By mapping processes and then measuring and analyzing each factor, one knows
how to improve and control them. These control mechanisms can be both macro
and micro in scope.

DAILY WORK MANAGEMENT

Daily work management relates to management of activities pertaining to area of
responsibility & which are repeated on daily/routine basis.

44
Daily work management is the act of ensuring that the activities:-
for which each individual work area is responsible,
which are repeated regularly on the basis of standards, etc.,
are performed reliably.

NEED FOR DAILY WORK MANAGEMENT

1. To avoid fire fighting/managing crisis:-We do fire fighting for
• Planning/frequent changes in schedule
• Tool maintenance
• No action on feedback of operator
• Absenteeism
• Material quality
• Training of operator
• Inter-department coordination
• Change control
• SOP not followed
• Inadequate facility
• Equipment maintenance
• Responsibility
• Delayed delivery from supplier
• Rain…

2. To avoid quick fix:-It means

• To depend primarily on experience, common sense, or past practices for the
solution to a problem.
• To attempt to solve problems without data collected & analyzed to test a
theory.
• To believe that methods used successfully by others will solve the problems
of this organization.

45
 • To focus problem solution related to end product or on another unit of the
organization.
• To believe that the solutions to most problems are immediately apparent.
3. Need to maintain current level of performance and simultaneously aim for small
small gradual improvements.
4. Enabling senior people focus their time on improvement/future planning.
5. Management of regular/routine/transactional activities.
6. Avoiding the DRIP phenomenon.

PRINCIPLES OF DAILY WORMANAGEMENT

• Built in quality
• Determine CTQ of the process to reduce variation
• Understand and eliminate WASTE-unnecessary variation is a waste
• Anything which does not satisfy Customer/add value is a loss
• Other losses
- Mistakes which require rectification
- Production of items- not as per customer requirement
- Processing steps - which aren’t actually needed
- Unnecessary movement of people
- Transport of material from one place to another without any purpose
- Waiting for upstream activity output
- Producing for no customer
- Adherence to quality characteristics along with other needs of
fulfillment of a satisfied customer.
- Daily management starts with education and ends with education.
- PDCA(plan,do,check,act)
- Attitudinal problem
# We have no problems
# This is the best in the given circumstances
- “We have lot of problems”- make problems visible.
- Solve root cause of problem(5 Whys)

46
 FLOW CHART FOR DAILY MANAGEMENT

DAILY MANAGEMENT SYSTEM FOR STAFF FUNCTIONS

Job description Interface areas Develop process

objective
job
Develop

Management Decision areas flow charts/SOPs

points & targets

Set of management
points to be
monitored

Trends against
targets

Monitor as
defined

5-S
Goal:
“To make clean & safe working environment by continuous improvement in 5-
s system and its implementation”
Objectives:
• creating a neat & clean workplace
• systematize day to day working
• improving work efficiency
• standardize work practices
• improve work discipline

47
 Concept:
5-s system consists of:
1. S-1 SEIRI (Separation ) Clean up(sort out)
2. S-2 SEITON (Systematize) Make convenient-
a. identify location
b. put in place
3. S-3 SEISO (Sweeping out) Cleanliness
4. S-4 SEIKETSU (Sanitation) Health & Hygiene
5. S-5 SHITSUKE (Self-Consciousness) Promote a good habit

Meaning of 5-s:
1. S-1 Clean up (sort out):- Segregate items that are necessary v/s those that
are unnecessary.
2. S-2 Make convenient: - Place all selected items in proper location keeping in
view the quality, safety etc.
3. S-3 Cleanliness: - Clean all working area/machines/tools for a better working
atmosphere. Eliminate all dirt which would be the first step of the preventive
maintenance.
4. S-4 Health & Hygiene: - Keep the environment clean in a way that health &
hygiene conditions always exist.
5. S-5 Promote a good habit: - All employees participate in setting 5-s
standards and adhere to those standards.
Importance:
• A clean workplace is high in PRODUCTIVITY.
• A clean workplace has high QUALIYI.
• A clean workplace keeps COST down.
• A clean workplace ensures DELIVERY on time.
• A clean workplace is SAFE for people to work.
• A clean workplace boosts employees MORALE.

48
 3rd stage
Promote good
habits/autonomous
or discipline (S5)
SHITSUKE

Stages of 5-s development

1st stage
Implementation
Final stage
S (1) S (2) S (3) Create
management
SEIRI SEITON SEISO
effectiveness

2nd stage
Health & hygiene/
standardization (S4)
SEIKETSU

Use with material/equipments &

working area
What do we get from practicing 5-s activities?

49
5-s Activities – Procedures & Methods

Members of the 5-s team conduct meeting

Choose topic/action plan in each month

Every member participate in the activities

Action plan to be suitable for working place

Implement

Evaluate

Set standard

5-s Activities Day

 The activities are done according to the plan/topic set out for that month
 Apply 5-s activities in your responsible areas
 Maintain good implementation of each topic
 Every team shall fix 5-s activities day in their area at least twice in a month &
maintain 5-s activity record

CLEAN UP PROCEDURE (SEIRI)-S 1

Seiri (organization) means to distinguish the necessary and the unnecessary
items in the accordance with following guidelines. Distinguish between what is
necessary and what is unnecessary and get rid of what you do not need.
Preserving unwanted things and information which are not needed consume
extra space and create more work. Clear cut guidelines may be devised for
deciding materials which are required and not required.

50
 HOW TO START?
o Inspect all material in the working area.
o Serrate the utilities out of junk and/or waste.
o Get rid of the excess which are over kept /stored and get rid of all
unnecessary items.
Materials you have not used in the past one year, and which do not have further use
may be thrown away.
 Materials which were used once in the past six months should be kept at a
distant location.
 Materials which are of use once in three to six months should be kept in a
central place.
 Things are of use once in a month should be kept at convenient locations.
 Things are of use weekly, daily or hourly should be kept at a very close
distance near the work table.

 Ensure that there is a place for every thing and every thing is in its
place.
 Clarify standards/prepare check list to judge the necessary things from
the unnecessary.

MAKING CONVENIENT PROCEDURE (SEITON) – S 2

Convenience principles:
o Arrange suitable location, with identification for all materials/equipment
and put them back to their places after being used.
o Emphasize in putting all material/equipments in proper place where they
belong.
o Material/equipment frequently used must be put near and or next to the
user.

51
 o Grouping the same kinds of material/equipment in the same location.
Procedure for creating Convenience
Get rid of unnecessary things

Put in proper position

Fix suitable location for materials/equipments

Tag/sign/label is required for each location of materials/equipment

All materials, equipment need to be labeled

All fixed location of materials, equipment should be documented

Frequent inspection is required

Benefits from convenience procedure:

 Helps in reducing time of finding materials for use.

 Easy to inspect and recognize when materials are taken out from their original
location.
 Creates work effectiveness
 Creates safe working atmosphere.

CLEANLINESS (SEISO) – S 3
o Use brooms/water in cleaning process
o Paint or draw lines around fixed area
o Eliminate all the original resources of dirt

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 o Clean up even small spots

Benefits from the cleanliness method:

 Creates congenial working conditions
 Create more efficiency of machines and equipments
 Enhances machines equipment life

HEALTH & HYGIENE (SEIKETSU) – S 4

Healthy & congenial working environment will be created through the implementation
of the 3 Ss. Keep practicing all 3s activities.
Benefits from the healthy environment:
 Neat, clean and nice working area
 Create excellent physical and mental health

PRMOTE A GOOD HABIT (SHITSUKE) – S 5

Keep practicing all the 4s activities through their procedures until they become
habits.
Strictly follow the 5-s guidelines and the standards set.

Chapter3

RESEARCH METHODOLOGY

“ALL PROGRESS IS BORN OF INQUIRY AND INQUIRY OFTEN LEADS TO

INVENTION”.

Research is an art of scientific investigation. According to CLIFFORD WODDY

research comprises defining and redefining problems formulating hypotheses and
suggested solutions, collecting, organizing and evaluating data, making deductions

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and reaching conclusions and at last carefully testing the conclusions to determine
whether they fit the formulating hypotheses.

Research methodology is basically a framework a blue print for the research study,
which guides the collection and analysis of data. Research methodology is being
framed in order to achieve the research objective. It is an expression of what is
expected of the research exercise in term of result and analysis of input needed to
convert data into research finding designing a search plan call for decision on the
data sources, research approaches, research instruments and contract method.

Researcher studied the TQM from books. The true picture of TQM in SHRIRAM
RAYONS is studied from its records, list of TQM meetings and programs in
company and a part is also studied from website of company and its databank.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of

data in manner that aims to combine relevance to the research purpose with
economy in procedure. In fact research design is the conceptual structure within
which research is conducted. It constitutes the blue print for collection, measurement
and analysis of data. The research design must make enough provisions for
protection against bias and must maximize the reliability.

“The research used in project is descriptive type”

Descriptive research studies are those studies, which are concerned with describing
the characteristics of a particular individual or of a group specific. Studies concerned
with narration of facts and characteristics concerning individual, group or situation
are all examples of descriptive research studies.

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Descriptive research includes surveys and facts finding inquiries of different kinds.
The major purpose of descriptive research is description of state of affairs, as it
exists at present. There is no control over the variables and only the cause can be
discovered under this type of research and generalization of facts can be done.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or procedure the researcher would adopt in selecting items
for the sample. Researcher must select/prepare a sample design that would be
reliable and appropriate for his research study.

Size of sample – this refers to the number of items to be selected from the universe
to constitute a sample.

“Here in research sample design, researcher tried to cover all the persons of
company. So researcher took 3-4 persons from required department and
persons are taken from all levels of management so that proper analyses of
situation can b done.”

DATA COLLECTION

Data collection begins after a research problem has been defined and research
design/plan chalked out.

There are two types of data:

 Primary data
 Secondary data

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Interview: -

Personal interview method requires a person known as interviewer asking questions

generally in a face – to – face contact to other persons.

In case of direct personal investigations the interviewer has to collect information

personally from the source concerned.

Indirect interview can be conducted under which interviewer has to cross examine
other persons who are supposed to have knowledge about the problem under
investigation and information thus obtained is recorded.
“Approach to project is through direct interview.”

Chapter- 4

SWOT ANLYSIS

After visiting the whole organization and seeing its various departments it can be
said that it was nice to visit such organization and to know what really an
organization is. There are some strength, weaknesses, opportunities & threats which
are as follows:

STRENGTH

 First to get ISO 9002 certificate in RAYONS

 Export award 7 times
 Good relationship between labor and management
 Having latest machineries
 Quality and meeting deadlines
 Networking system of SHRIRAM RAYONS is very effective

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 WEAKNESSES

 Shrinking market
 No domestic market
 Production depends upon demand of finished goods from international market
 Production solely depends upon import of raw materials
 Manually setup

OPPORTUNITIES

 Leading manufacturer in Rayons.

 Good relation in international market
 Having 30% market share in Rayons.
 Joint venture with tyre manufacturing companies both international and
domestic.
 Having expansion plans.
 New expansion in plant for making in domestic territory.

THREATS

 Competitors (mainly century rayon in India).

 Govt. policy of import of second band tyre.
 WTO, GATT agreements.
 Paid in Dollars and earn in Euro currency, nylon dominance.
 Increase in competition.
 Decrease in the demand of production in international market.
 Change in govt. policy regarding to tariff, customs & excise duty.

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 CHAPTER - 5

CONCLUSION

 In this organization TQM is considered as a very good concept & many

employees are aware about its importance.
 Company launched extensive training programs on 5s and almost all the
employees have received training on 5s.
 In some areas like Six Sigma and Daily Work Management there is a need of
more awareness and training to be given to employees.
 This was also observed that company has done much work in 5s but it is
lacking in the Six Sigma & Daily Work Management.
 Only people from technical field & top management authorities know about
Six Sigma.
 Even today much work is done manually, especially in Personnel & IR.

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