change management at the ptc (quality improvement program 2007)
TRANSCRIPT
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Change Management at PTC
Group Members:
Jarrar Haider -056
Faizan Anjum -101
Saleha Hashim -155
Zunaira Shabbir -102Date: Wednesday, 14 May
2014
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Content
Introduction Problem faced by PTC TQM Program Challenges for Implementation SQC Tools Solution for Change Voice of customer Implementation Results References
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Introduction
• Operational in 180 countries
• 85000 people employed
• Sold 17% share of global market of cigrates
BAT group
• Was in operations in India from 1905
• In 2005 PTC paid the government Rs.20 Billion in excise and sales taxes (66millions per day)
PTC incorporated
in 1947
• 2 operational factories at Jhelum and Akora Khattak
• ISO 9001 and 14001 certifiedFactories
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Problem Faced by Company
Market decreasing share
• Complaints from customers
• Quality issues for product
Statistical quality control (SQC) tools to cater this issue
• Different perception of employee and managers
Objectives of program was to
Change organizational culture from classic authoritative & shareholder-focused to a more participative and consumer-focused
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TQM Program
Low cost and high quality is essential,
so need of
Efficient and
responsive supply chain
Low process wastes and
quality product
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Challenges for Implementation of
Change
Behavior and resistance to program of employee
Motivation level was low
Series of complementary program introduces ◦ WOW (Winning in our World)
◦ Business Excellence Program (MRP)
◦ Supply Chain Modification
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SQC Tools
Variation in product characteristcs
Cigarette is more lucrative product
◦ Highly taxed
◦ Taste dependent (question origion)
For company fighting with variations
was important
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Solutions for Modifying
Behaviour of Employee for
Change Company embarked on the SQC implementation
program with the following outlines:
Planned to get assistance of highly qualified outside consultants for the training & education
Educate line Mangers.
Educate shop floor employees (Team Members)
Developing graphs and use on machines manually.
Introduce an online system.
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Failure and Modification
Insufficient commitment of top management, to create enthusiasm in the participants. ◦ 40% dropout from course on second day
◦ Only 50% participant could manage to get “Course Attendance Certificate ”
Threat of failure came on the shoulders of the consultant
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New Team for Change
New hired consultant(highly respected and experienced ), proved to be as ineffective as the first one was.
Management now tough on different line
Approached academia professor
New team formed of two consultant and one professor
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Problem Sorted Out
Low literacy rate of the workforce is an impediment.
Age profile of the workforce is contributing to the lack of enthusiasm for leaning new tools
Most workers have not been to classroom environment for more than 20 years
• Finding it difficult to adjust to the environment
The lack of confidence to acquire the same level of skills on the new tools
• loose their personal leadership
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Recommendation by team
Brain storming with site session
participants
Listen to their feedback and views to
make a more realistic action plan
First step towards VOC (Voice of
Customer)
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VOC (voice of customer)
After consideration ◦ Venue changed for sessions (Islamabad)
◦ Properly invited events for session
Objectives communicated to training manager ◦ This not for us (trainer didn’t quoted example
of relevant industry)
◦ What is in it for me (extra work view of employee)
◦ What are the benefits for PTC
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Alternate Route
Fact-finding team found itself facing a set of ground realities totally different from assumed
◦ Need of aligning the training contents to the training needs
◦ The site management should carry out all the development work using indigenous resource
◦ Training of the employees should be done by someone from within.
◦ There should reward and recognition system in place for high performers
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Implementation
Training material developed in Urdu Language ◦ With relevent industry examples
Course completed successfully ◦ All participants got above 60% marks in final
exam
Crashed program offered for senior machine operators on 7-quality tools ◦ Concerned about product, weight,
circumference and pressure-drop
Web-based quality information system developed to display graphs on CRTs
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Reward and Recognition
Comprehensive test was scheduled at
the end of each course
Top 3 position honored by professors
for recognition
Dinners arranged for participants
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Results (period starting 1999 to 2007)
Factory Production Floor: (MQI)
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Results (period starting 1999 to
2007) Manufacturing Quality Index
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Results (period starting 1999 to 2007)
Ex-market
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Results (period starting 1999 to 2007)
Market Complaints
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Conclusion
Program proved to be very successful
Within one year the shop-floor employees started using control charts, Ishikawa & Pareto diagrams and histograms for analysing product and process quality and taking corrective actions.
The enthusiasm was so high that people started to volunteer for the training course
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References Company Reference
Turab Ali Khan
Product Assurance Manager
Pakistan Tobacco Company Ltd. Pakistan
Web references
◦ http://en.wikipedia.org/wiki/Pakistan_Tobacco_Company
◦ www.ptc.com.pk/group/sites/pak_7shbxn.nsf/.../medMD933EBD.pdf
◦ http://www.brecorder.com/company-news/235:pakistan/1161783:pakistan-tobacco-company/
◦ http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWebLive/DO7T5LR5?opendocument&SKN=1
◦ http://www.pakistanbusinessjournal.com/b2b-directory/pakistan-tobacco-company-ltd_26812.html
◦ http://www.ptc.com.pk/
◦ http://www.ptb.gov.pk/
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