Download - Tqm Report Nestle Waters Final Zohaib
“Practices at Nestle Pure life”
By
Fahad Aliani (1225145)
“5-S House Keeping Practices at Gul Ahmed Textiles”
By
M. Raza Zulfiqar (1225121)
“TQM Practices at McDonald’s Pakistan”
By
Zohaib Ahmed khan (1225180)
COURSE: Total Quality Management
Submitted To:
Fasihul Karim Siddiqi
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Introduction (NESTLE):
Industry overview:
In Pakistan there was no concept of water bottles, even no one ever thought of getting in a
business of water. The perception was, who will buy a bottle of water, when it’s free everywhere.
But Nestle was the first company, who made a plan to launch a Pure water with the name
NESTLE pure life. They launched Nestle pure life in 1988. There are many competitors in the
market now including Local companies and MNC’s, who are in this business now. Major
companies in this industry are Kinley, Aquafina, and Nestle.
History of Nestle:
Nestle began in Switzerland in the mid 1860s when founder Henri Nestle created one of the first
baby formulas. Henri realized the need for a healthy and economical product to serve as an
alternative for mothers who could not breastfeed their babies. Mothers who were unable to
breastfeed often lost their infants to malnutrition. Henri’s product was a carefully formulated
mixture of cow’s milk, flour and sugar. Nestle’s first product was called Farine Lactée (“corn
flour gruel” in French) Henri Nestle. The product was first used on a premature baby who could
not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on
treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the
nourishment that saved his life. Within a few years the first Nestle product was marketed in
Europe.
Nestle in Pakistan:
Nestle has been serving Pakistani consumers since 1988, when parent company, the Switzerland-
based Nestle SA, first acquired a share in Milkman Ltd. Today Nestle is fully integrated in
Pakistani life, and is recognized as the producer of safe, nutritious and tasty food, and leaders in
developing and uplifting the communities in which they operate. Nestle Pakistan ensures that
their products are made available to consumers wherever in the country they might be. 2
Convenience is at the heart of the Nestle philosophy, and there aim is to bring products to
people’s doorsteps. Now Nestle is the biggest market leader in Water Industry of Pakistan, they
have built their name in water sector with the strongest brand name “Nestle Pure Life”. They
have gain the trust of public in a way, that even they can buy a product of Nestle anywhere in the
country. They have the biggest market share in Water Industry of Pakistan, according to them
they are selling Quality and that is their competitive edge.
Mission Statement:
At Nestle, we believe that research can help us make better food so that people live a better life.
Good Food is the primary source of Good Health throughout life. We strive to bring consumers
foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In
addition to nutrition, health and wellness, Nestle products bring consumers the vital ingredients
of taste and pleasure.
Vision and Strategy:
The Nestle global vision is to be the leading health, wellness, and Nutrition Company in
the world. Nestle Pakistan subscribes fully to this vision. In particular, we envision to:
Meet the nutritional needs of consumers of all age groups from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food
and beverage products of the highest quality.
Lead a dynamic motivated professional workforce proud of its heritage and bullish about
the future
Products:
o Milk pack
o Nescafe
Nescafe Classic
Nescafe Gold
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Nescafe 3 in 1
o Nestle Pure Life
o Cerelac
o Maggi Noodles
o Breakfast Cereals
Corn Flakes
Honey Gold
Koko Crunch
Milo
Hierarchy of Nestle Pakistan:
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CEO
Supply chain department
Human resource department
Quality assurance department
Finance department
Production department
Engineering department
Problem Observed:
It was noticed during the packaging and production process of bottles that bottles were not
properly cleaned which is not a good sign or image for a company in eye of customers.
Problem statement:
The purpose of research is to study how Nestle improves the product’s quality and customer satisfaction, which practices they are using to overcome their problem.
Definition of Quality by Nestle:
TQM capitalizes on the involvement of management, workforce, suppliers, and even customers,
in order to meet or exceed customer expectations.
Quality in business, engineering and manufacturing has a pragmatic interpretation as the non-
inferiority or superiority of something. Quality is a perceptual, conditional and somewhat
subjective attribute and may be understood differently by different people. Consumers may focus
on the specification quality of a product/service, or how it compares to competitors in the
marketplace.
In manufacturing, a measure of excellence or a state of being free from defects, deficiencies, and
significant variations, brought about by the strict and consistent adherence to measurable and
verifiable standards to achieve uniformity of output that satisfies specific customer or user
requirements.
Every Organization has its own definition of quality. Nestle defined quality as “The corner stone
for success and the satisfaction of the customers. They relate the word quality with the stage on
which customer is satisfied and they say that if the customers are fully satisfied with their
products then it is quality. They also say that consistency in their products defines the quality.”
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Techniques to improve product quality:
1. Quality Assurance Department:
In order to build quality into the culture a quality council is established to provide overall
direction, it is the driver for the TQM engine.
In typical organizations, the council is composed of the CEO, the senior managers of the
functional areas such as design, marketing, finance, production and quality and a coordinator or
consultant.
In Nestle the duties of the quality department are to:
1) Develop, with input from all personal, the core values, vision statement, mission
statement, and quality policy statement.
2) Develop the strategic long term plan with goals and the annual quality improvement
program with objectives.
3) Determine and continually monitor the cost of the poor quality.
4) Continually determine those projects that improve the process, particularly those that
affect external and internal customer satisfaction.
5) Establish multi functional project and departmental or work group teams and monitor
their progress.
Hierarchy of Quality Assurance Department:
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Quality Manager Market
Quality Assurance Coordinator
Responsibilities:
The Quality Manager is responsible for the administration of the Quality Plan and has the
authority to manage all work affecting quality. The Quality Manager will provide
leadership for the development, implementation, communication and maintenance of
quality system policies and procedures for the Company according to the approved
quality system. A primary goal is to achieve a high degree of joint ownership of quality
and compliance strategies with all of the major operational stakeholders in the Company
while addressing regulatory requirements in an effective, timely and responsible manner.
Quality Manager Market is the head of Quality Assurance Department. The responsibility
of quality manager is to monitor overall performance of the quality department. He
insures that every task within the quality department is going in the right direction. He
calls upon the meeting of whole team on weekly or monthly basis.
The responsibilities of Quality Assurance Coordinator are to assigns, reviews, and the
work of professional, technical, and clerical staff. Interprets and implements quality
assurance standards. To monitor unusual occurrences, report follow-up procedures, and
report monthly and year-to-date comparisons. To assist the director with records form
revisions and procedures. Reviews quality assurance standards, studies existing policies
and procedures, and interviews personnel and customers to evaluate effectiveness of
quality assurance program. Responsible for achieving a satisfactory working environment
between other departments performing quality-assurance studies. Another major
responsibility of her is to ensure that the product quality should remain consistent and
there should be no compromise on the quality of the product. That is why there is no
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Analyst
(L3)
Analyst
(L1)
Analyst
(L2)
compromise on cost for this department. As QA Coordinator quoted that they; “high cost
for high quality.”
Under the QA Coordinator there are three lab analysts. The responsibility is to check the
quality of minerals by applying different international methods on them in the laboratory.
Before sending the product into market the lab analysts check the eminence and then
illuminate it. QA Coordinator told me that to measure the analytical skills of analysts,
some blind samples came from the main laboratory which is in Switzerland. The analysts
have to test these samples and then conclude their results. On the basis of these results the
analysts are graded, and from the last five years these analysts are getting A grade in this
performance test.
2. Quality Circle:
There are three steps in quality circle;
1) KPI (Key Performance Indicator)
2) PPI (Process Performance Indicator)
3) Drivers
A key performance indicator (KPI) is a specific measure of an organization's performance
in some area of its business. It is a very general concept, with different implementations
depending on the type of business and goals of the organization. In Nestle upper level
managers or team leaders are using KPIs. They made the policies, rules and regulations
for assigning the tasks to employees and keeping them in right direction. These are
basically the tasks of the upper level management. For example; machine checking,
training of employees, monitoring, setting sales targets E.T.C.
Process Performance Indicator is used by the plant managers. Plant managers direct and
coordinate plant operations within company policies and procedures. Maintain a clean
and safe plant. Establish and direct plant policies and procedures. Responsible for plant
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production goals. Establish and maintain a positive community relationship. Conduct
employee performance reviews. Plant managers used PPIs to ensure that there should be
no gap in manufacturing process and everything is going smoothly. They direct the
workers to different tasks. Plant manager calls upon the meeting with the upper level
management and discuss the current issues.
Drivers are used by workers. Workers are actually implementing the rules which are
designed by the upper level management. If there is any issue during the manufacturing
process, the workers immediately report to the plant manager. Plant manager checks the
level of the issue, if the issue is out of his capacity; he schedules a meeting with the upper
level management.
3. Feedback:
In Nestle they take both internal as well as external feedback.
Internal Feedback:
The upper level management involves the employees in the brain storming session for creating
ideas or solving problems. The meeting is on the quarterly basis and it also known as NCE
(Nestle Continuous Excellence). Employees are free to share their ideas with the management.
The ideas are then evaluated, short listed and accepted on the basis of their significance.
We have an example of internal feedback. QA Coordinator told us that she has also participated
in issue resolving session. There are thirty guidelines for quality in nestle, so there are thirty
different documents for it. QA Coordinator takes an initiative and summarizes those guidelines
to make them easier to understand. This was accepted all over the Asia and QA Coordinator got
star award from the organization on this achievement.
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External Feedback:
Nestle take the feedback from customers on monthly basis. The call centers are created for this
purpose and they have the phone numbers of all of their customers in their data base. Another
technique is used to avoid the biasness in taking the feedback, the call center of Karachi calls the
customers of Islamabad and the call center of Islamabad calls the customers of Karachi.
4. Types of Teams:
1) Process improvement team
2) Cross functional team
3) Self managed team
In Nestle they are working in two types of team:
In process improvement team the members represents the each operation of the process.
Usually the scope of the team’s activity is limited to the work unit. We can take example
of the returnable bottles. The quality department is responsible for the intense cleaning of
these bottles. So this is the issue of quality department and they have to do this work
within their team. This issue is not in relevance to other departments.
In Cross Functional Team there are 6 to 10 members will represent a no. of different
functional areas such as Engineering, Production etc. In Nestle, they are also using the
cross functional teams but it depends upon the nature of the product. We can take
example of a project of Nestle in which they have extract a limited water from well to
make their environment safe. In this project they were using cross functional teams which
is formed by different department members.
5. Continuous Process Improvement:
Quality is a never ending quest and Continuous Process Improvement (CPI) is a never ending
effort to discover and eliminate the main causes of problems.
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PDSA Cycle:
Nestle strongly rely on PDSA cycle for solving several of its problems. A PDSA cycle is a
system for continuously improving environmental management systems. Following this cycle,
Nestle will Plan (set environmental policies and targets for itself and create a plan to achieve
them), Do (put the plan into practice), Study (check the results and make corrections) and Act
(make revisions and improvements for the next step in the cycle).
Figure3: PDSA Cycle
6. Training in Nestle:
They are giving induction training to the new recruits. In this training basic orientation is
given to employees. The trainers told them the rules & policies of the organization. The
trainers also observe the skills, attendance, capabilities of the employees.
For other employees Nestle is giving them on the job training as well as give them the
opportunity for training by a third party. As the QA Coordinator recently got training
from a third party in Lahore.
There are different levels for employees; the lowest level is white belt, then going
upwards its yellow, green, black & master black belt.
Conclusion:11
Nestle was the progenitor in water manufacturing industry, whose aim was to present the best
quality of water for a healthy life. Although the idea in starting was not sure what will be the
acceptance level but after the great success of baby food formula, company managed to start the
water project. Food formula and water manufacturing were recognized unanimously in a very
short period of time.
Nestle is now one of the biggest industry of water in whole wide world. The competitive edge to
Nestle is its quality which is the achievement of the company. Apart from the quality
enhancement Nestle aim is to bring the product to their door step which is now happening as
Nestle is of best quality in food items. For a healthy life Nestle is continuously improving its
product quality and had bought food for all ages.
Company’s only motto is customer’s satisfaction which is directly proportional to the quality. As
quality will improve the satisfaction level of customers will rise. There is no compromise on
quality that results in saying “high cost for high quality”. If the quality of the product is good
then customer will not step back in cost. By which means that the demand in market will
increase and there will be huge profit for company just by not laying the quality of product.
Nestle have implemented different international methods for the improvement of water. Different
analysts and laboratories have been set up to keep a balance check on quality control. All other
departments are also important but great emphasis is given on quality control of “Pure Life”.
Projects are being focused to improve the satisfaction level of the customers. Company have
made its huge in market just because of the quality in its products, where it’s touching the height
of success and profitability.
Recommendations:
Quality of plastic should be improved as sometimes water tastes smell like plastic.
Nestle should take care of the disposal of water bottles for pollution.
Company should be a keen observer about the piracy of their product, which is also
damaging the brand name.
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Water should be full of essential minerals for healthy life.
The material used for packing should be of better quality because while opening bottle it
get distorted and water overflows.
INTRODUCTION OF THE TOPIC:
5S HOUSEKEEPING:
5S consists of the Japanese words Seiri (Sort), Seiton (Straighten) , Seiso (Sweep and Clean),
Seiketsu (Systemize), and Shitsuke (Standardize). The underlying concept behind 5S is to look
for waste and then to try to eliminate it. Waste could be in the form of scrap, defects, excess raw
material, unneeded items, old broken tools, and obsolete jigs and fixtures (Monden, 1998).
S, SEIRI, deals with moving those items that are not currently being used on a continuous basis
(e.g., items that will not be used for the next month or so) away from those that are. Moving
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those items and tossing away needless items will make material flow smoothly, and workers
move and work easily (Feld, 2000).
SEITON has to do with having the right items in the right area. Items that do not belong to a
given area must not be in that area. For a given workplace area tools must be marked and
arranged as belonging in that area. This will make it easier to move those items that are not
labeled from that area. Arranging items in the right place will make tools, jigs, fixtures, and
resources noticeable, detectable, and easy to use (Feld, 2000).
SEISO deals with cleaning and sweeping the work place methodically. The workplace should
look neat and clean and ready to use for the next shift. The work place should be maintained on a
regular basis (e.g., daily). All tools and items should be in the right place and nothing should be
missing. A well-maintained workplace creates a healthy environment to work with (Feld, 2000).
SEIKETSU is maintaining a high standard of housekeeping and workplace arrangement. A
regular audit should be run and scores should be assigned for areas of responsibilities. If every
area has people assigned to it then everyone has responsibility to maintain a high standard of
housekeeping and cleaning (Feld, 2000).
SHITSUKE is management's accountability to train people to follow housekeeping rules.
Management should implement the housekeeping rules in a practiced fashion so that their people
can buy into it. Management should walk the shop floor, explain what they want from people,
reward those who follow and instruct those who do not (Feld, 2000).
Taken together, 5S means good housekeeping and better workplace organization. Kaizen tools
such as 5S are not only a means to increase profitability of a firm but also allow companies to
reveal potential strengths and capabilities that were hidden before (Hirai, 2001). Sweeny (2003)
and Cox (2002) have reported good results implementing 5S. Further, benefits of implementing
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INTRODUCTION OF THE COMPANY:
GUL AHMED TEXTILES
COMPANY HISTORY:
The story of textiles in the subcontinent is the story of GulAhmed. The group began trading in
textiles in the early 1900's. With all its knowledge and experience, the group decided to enter the
field of manufacturing and GulAhmed Textile Mills Ltd. was incorporated as a private limited
company, in the year 1953. In 1972, it was subsequently listed on the Karachi Stock Exchange.
Since then the company has been making rapid progress and is one of the best composite textile
houses in the world. The mill is presently a composite unit with an installed capacity of 103,000
spindles, 220 wide width air jet looms, 90 Sulzer's, 297 conventional looms and a state of the art
processing and finishing unit.
There are 11 manufacturing facilities. The turnover of the company is US $100 billion in which
60% are the exports.
MISSION:
To deliver value to our partners through innovative technology and teamwork. Fulfilling our
social and environmental responsibilities.
VISION:
Setting trends globally in the textile industry. Responsibly delivering products and services to
our partners.
The following is a list of the major companies that comprise the group:
GulAhmed Textile Mills Limited15
GulAhmed International Limited (FZC) - UAE
GulAhmed Textile Mills (Europe) Limited - UK
GulAhmed Energy Limited
GulAhmed International Limited (FZC) - UAE is a wholly owned subsidiary of GulAhmed
Textile Mills Limited and GTM (Europe) Limited is a wholly owned subsidiary of GulAhmed
International Limited (FZC) - UAE.
Both subsidiaries are engaged in trading of textile related products.
BUSINESS ACTIVITIES:
TEXTILES:
In the textile field, activities start from the spinning of cotton as well as man-made fibers and
extend to weaving, processing and finishing of all types of cotton and blended fabrics, bed linen,
home furnishings, garment manufacturing, etc.
POWER:
The group has been a pioneer in the field of power generation. GulAhmed Energy operates a
power plant of 136 MW capacities with a project cost of US$140 million located at Korangi,
Karachi. The sponsors of this project include the International Finance Corporation (subsidiary
financial institution of the IMF) and Tomen Corporation. The project has been in commercial
operation since November 1997.
MANAGEMENT:
Management of the group is professionally qualified and broadly experienced. The directors
have held top positions in various textile bodies, export committees and have also assisted the
Government of Pakistan in some of the major trade talks with European Countries (EU) and
USA authorities.
MEMBERSHIPS:
GulAhmed is a member of the following trade unions and organizations in order to be the active
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part of every transformation in the textile industry rules. It also helps GulAhmed to have the
competitive edge. GulAhmed is a part of all the organizations or trade unions that are stated
below.
The Karachi Stock Exchange (Guarantee) Limited.
Lahore Stock Exchange (Guarantee) Limited.
All Pakistan Textile Mills Association.
Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.
All Pakistan Bed sheets & Upholstery Manufacturers association.
Karachi Cotton Association.
Chamber of Commerce & Industry, Karachi.
Employees Federation of Pakistan.
All Pakistan Textile Processing Mills Association
PROBLEM STATEMENT:
The intention of this research is to study the environments and process under which GulAhmed
Textiles is applying 5S of housekeeping techniques. To suggest the most appropriate process of
5S of Housekeeping for GulAhmed Textiles.
5S practice is one of the techniques to improve quality environment, health and safety at the
work place. Evaluation of 5S practice can be done through implementation of 5S audit at each
division in the company.
OBJECTIVES:
The objectives of this report are:
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To fulfill the course requirement of "Total Quality Management" and understand the
concepts and mechanisms of carrying out a research involving 5S of Housekeeping.
To know how existing process are carried out, analyzed, interpreted and how suggestions
are made based on logic.
To form the basis for further development of such application of 5S of Housekeeping,
implementation, management and Quality control.
LIMITATIONS:
On account of certain reasons pertaining to the nature of the organization studied to maintain
operational secrecy, time constraints and in order to restrict this report within the acceptable size,
this study has been limited to the following areas of the topic:
The strategies and objectives of 5S of Housekeeping, where the objectives are and
tactical and strategic.
The mechanics and implications to be considered while developing suggestion of
Housekeeping.
The study looks at the process at GulAhmed Textiles with reference to these limitations, and
makes suggestions on the same.
5S HOUSEKEEPING PRACTICES AT GUL AHMED TEXTILES:
There are many tools that can be used to tackle problem without additional engineering
and practical methods to engage employees in organizational development. One of these tools is
5s housekeeping which voluntalary lend it to be quantify by simulation or reproduction. In this
research work we will develop an elaborated 5s housekeeping for Gul Ahmed textile and
consider the benefits that can be achieved by implementing or practicing this tool.
There are many different areas where Gul Ahmed Textile can use 5S,
THE GO DOWNS,
WAREHOUSE
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MILL TOOL AREA.
PROCESS AT GO-DOWNS:
At Go-downs for example the bundles / carton arrive from their final process by lifers,
loaders, small crane. The bundles / cartons are unloaded at the entrance to the go-downs /
warehouse, where it is wrapped in a protective packaging and banded.
The bundles / cartons is tagged with a bar-coded ticket containing the carton number,
width, weight, length, the mill order item number, customer order number, bay number and the
tracking number. The crane then picks up the bundles / cartons and places it in its designated
place. Each place is numbered, and bundles / cartons are placed in their designated place ready
for shipping.
PROBLEMS OBSERVED:
1. In the go down it was noticed that the driver of lifter has to make unnecessary stop
because rolls of plastic packaging were blocking the way
2. Crane operator was making mistakes in picking up the correct bundle because it was not
tagged correctly and warped properly.
MILLS AREA:
The same thing applies to the mill area where damaged rolls (cotton / raw material), broken
fixtures, and unnecessary tools should be removed. A good start is to get rid of anything that is
not going to be utilized for the next 30 days or the goods which you never need, or item for
scrape.
TAGGING THE ITEMS:
Placed a separate tag on items which will use once in a month, another tag on unneeded
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items and different tag on items for scrape items and another different tag must be put on those
which is use daily. Each tag must have a number, which department it belongs to, the date, and
the reason for tagging. If there are doubts as to whether any item is needed or not, an appropriate
tag must be placed on it.
The problems we observed on first hand is that operator was unable to find the item they
need at that moment which was causing time delays and in other word you can say waste of time
( muda). In the go downs finished inventory was not placed properly or in order due to which
upon the time of delivery they spend a lot of time of searching for that lot. Another mistake
which was being made in ware house and go downs was wastage of space due to not properly
placing the finished goods or raw material. This was also causing moving problems for lifters
and employee. This problem can also cause safety issue because at work place everyone is too
much busy on his work so traveling though an area where anything is present on the way which
should not be can cause incident and 3 incidents has been reported by mill owners.
Another problem that we observed that some parts of the machinery were scattered in the mill
area which was disturbing the labor walking around. Another problem we observed that
arrangement of machine and other related stuff was in a way that they were blocking
communication between the workers and that weren’t able to see each other for example when
the after knitting process the cloth goes for printing. Now operator of printing machine has to
walk 5 or 6 step to see whether a batch of cloth is ready to be print so he can get the machine
ready so this was causing waste of energy of operator and also time wastage.
GUL AHMED Textiles are using approach of tagging the item. First of all they said that
we should divide everything in according to its usage. We need to tag the item which are of daily
use and weekly and monthly so that operator or user can’t get confuse what to use or finding the
correct tool which will take time.
Second part is to tag the item according to the department its belongs so that no waste of
time when employee is going to the other department to find the tool he needs. You also need to
eliminate those item which are not is use or will not be in used for at least a week. This will
reduce you look after time.
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By categorizing things into low, average and high usage. For low usage things store them at a
distance or if they are not for use anymore, dispose them properly. For average usage items, store
them centrally not very far and things which are of daily use store them close to their usage area
so that less walking is required and it saves time and energy.The major element of Seiri is simply
a critical look at the area. Involving cross-functional
Teams, or looking at each other’s areas, are an obvious first step. People tend to be blind to
Failings in their own work place and a fresh pair of eyes can be useful.
Another element of the standard approach is 'red tagging' where items are given a tag
Which says what the item is, which location it is in and when it was identified in this?
Location.
We then leave the area for a while and anybody using the item notes this. We go
Back some time later and can readily identify things that haven't moved, or been used.
Items which have not been used can then potentially be disposed of. As a first pass we
Should perhaps create a quarantine area before throwing items away, selling them or
Reworking them into something else. Other items may be deemed necessary but used
Infrequently and so an alternative location can be found. If the operator needs a particular
Tool only once or twice a month then a 20-yard walk is not a problem - especially if the
Space thus saved on the workbench helps to make the workplace more productive, or
Helps address quality issues.
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5S HOUSEKEEPING EVALUATION SHEET:
5S PRINCIPLES POOR FAIR EXCELLENT
1. SORT (SEIRI)
Take out unnecessary items &
dispose.
A lot of unnecessary
things are at the
workplace.
Unnecessary items are
disposed, but not right
away.
Unnecessary things not found at
any time.
2. SYSTEMATIZE (SEITON)
Arrange necessary items in good order
for use.
Employee often spend
time looking for
necessary things.
Necessary things are
arranged but not in
systematic order (not
easy to retrieve and
Necessary things are always
arranged in order for quick use.
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use).
3. CLEANING (SEISO)
Clean your workplace completely.
Workplace as well as
the machines is dirty
and untidy. Many
things are scattered
around.
Workplace and
machines are partially
cleaned (Centre and
surface only).
Workplace and machines are
completely cleaned. Area is free
of dust.
4.STANDARIZATION (SEIKETSU)
Maintain high standard of
housekeeping.
No attention is given to
keep workplace neat
and tidy.
Workplace is tidy but
not completely clean.
Dust and dirt are completely
shut out.
5. DISCIPLINE (SHITSUKE)
Do things simultaneously without
being told or ordered.
No work discipline.
People do what they
like.
People follow rules.
But just to start work
on time, without
enough preparation for
the work.
Prepares for work. Comes early
to check machine condition.
Cleans work area before and
after work.
CONCLUSIONS:
The main goal of this dissertation was to see the implementation of 5S tools and techniques in
the Gul Ahmed textiles, and what we find is that they are not using the proper way to manage
their tool and inventory in different areas, and so for this they are facing some problems (i.e.
waste , long setup time and etc ) . Tool like 5S have a significant impact on Textile Company
when implemented, by further helping in elimination of wastes such as excess inventory, long set
up times, and missed shipments.
The findings of this research demonstrated potential gains in different areas at Gul Ahmed. It is
worth mentioning that there could also be some limitations and potential barriers to
implementing tools. These vary from issues like union contracts to management changes. For
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example, tool such as 5S were discussed, one of the limitations for the 5S program is the union.
The union contracts might oppose thing like sweeping the floor or carrying an audit checklist
every week. Also, the workers themselves might resist changes to their current work
environment; a simple reason for this is the statement "this is the way we always do business."
In conclusion, the primary focus of this research was to see the application of 5S of
housekeeping in the process industry, with a focus on textile. It was demonstrated that 5S tool
and technique is for all seasons and it is not only limited to a manufacturing environment.
Introduction (McDonald’s)
McDonald’s Pakistan history
McDonald’s is the largest and best known global food services retailer with more than 30,000
restaurants in 121 countries. Our outstanding brand recognition, experienced management, high-
quality food, site development expertise, advanced operational systems and unique global
infrastructure ensure a position that enables us to capitalize on global opportunities. They plan to
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expand their leadership position through great tasting food, superior service, everyday value and
convenience.
McDonald’s Pakistan is part of the Lakson Group of Companies, a leading business house in
Pakistan.
McDonald’s first restaurant opened its door to the people of Pakistan in September 1998 in
Lahore. This launch was met with unprecedented enthusiasm from the citizens of Lahore, who
are known for their liveliness, vigor and penchant for quality food. Karachi opened its first
restaurant a week after Lahore.
Ever since they opened the doors of our restaurants both in Karachi & Lahore, they have been
proud to provide their customers the same great taste, outstanding value and superior service that
is synonymous with the Golden Arches all over the world.
There are now 27 restaurants in 8 major cities of Pakistan. (11 in Karachi, 1 in Hyderabad, 10 in
Lahore and 1 in Faisalabad, 1 in Kala Shah Kaku, 1 in Sialkot, 1 in Islamabad & 1 in
Rawalpindi)
Today millions of Pakistanis place their trust in McDonald’s every day- trusting the company to
provide them with food of a very high standard, quick service and value for money. McDonald’s
is firmly committed to giving back to the community where it operates.
McDonald’s Pakistan
Being a responsible corporate citizen, McDonald’s firmly believes in giving back to the
communities it operates in. They provide support and encouragement to the people who need it
the most. All their restaurants contribute to their local community and every year they help set up
and support numerous educational, sporting and charity programs designed to help a wide range
of people.
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McDonald's has a proactive approach to charities and sponsorships. They believe these help
inspire and support the people of Pakistan, especially the underprivileged ones, to live a better
life.
Company Mission Statement:
McDonald's mission is to be our customers' favorite place and way to eat with inspired people
who delight each customer with unmatched quality, service, cleanliness and value every time .
We invite you to be the part of this winning team and give yourself an opportunity to grow with
the family of people striving to create smiles on the faces of millions of people every day.
Vision Statement:
McDonald's vision is to be the world's best quick service restaurant experience. Being the best
means providing outstanding quality, service, cleanliness, and value, so that we make every
customer in every restaurant smile.
PRODUCTS:
Burgers & Sandwiches
Chicken & Fish
Breakfast
Salads
Snacks & Sides
Beverages
McCafé
Desserts & Shakes
PROBLEM STATEMENT:
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“The purpose of the study is to identify how best a TQM practice helps you in an organization
and I have taken McDonald’s which is the ISO 9001 certified organization”
Total Quality Management (TQM) Practices at McDonalds:
Employee Involvement:
Total Quality Management (TQM) programs are an important and prominent approach to
management. Nowadays, most large corporations have a program that incorporates some of the
practices and principles of total quality management. One of the most important principles of
TQM concerns employee involvement or often called as empowerment. It is common for a TQM
program to state that employee involvement is very important to its success.
For McDonald's, total quality management (TQM) involves that the employees are at work on
time, are neatly dressed, and are clean. The employees must make sure that the customers
constantly receive safe food, which implies that the employees must wash their hands often to
remain clean. Moreover, the employees must follow certain Standard Operational Procedures, so
the customers always receive exceptional quality and service. This includes the employees using
plastic gloves when they prepare the food, that the meat and fries are properly fried, and that the
vegetables are thoroughly washed when used in the food. Another TQM is that the employees
rely on teamwork and high energy to get the job done, so that the customers do not have to wait
long for their food. Furthermore, McDonald's management emphasizes that their restaurants
should be clean. This involves that the restaurants are tidy, sparkling and spotlessly clean. As
McDonald's illustrates the quality is that the employees delivers fast, accurate and friendly
service with a smile.
For TQM programs that do not have management commitment and employee involvement are
bound to fail. This will contribute to poor business results and employee turnover. High turnover
rates are a challenge for any company in the food service industry, including McDonald’s. Both
managers and academics believe that, with commitment from senior management, by involving
employees in problem solving, decision making, and business operations, performance and
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productivity will increase. Employees should be encouraged to control their destiny and
participate in the processes of the organization. To be effective, employees should be given
power, information, knowledge, and rewards that are relevant to business performance.
Focus on the customer:
Customers are the one who consume goods and services offered by organizations or companies.
In other words, all goods and services were provided as to fulfill the demand and the needs of
consumer. Besides that, customers also are the only one who ranks the effort and measurer of the
satisfaction level of the goods and services offered by the organizations or company. Without
customers, the efforts of managing and operating the organizations or company will be wasted.
Therefore, focus on the customer is an element to measure the total quality management of the
organization or company.
McDonald’s brand mission is “to be our customers’ favorite place and way to eat”. McDonald’s
operators, suppliers as well as employees cooperate to achieve customers’ need in McDonald’s
unique ways. They also have the best ideas with both large scale efficiency and local style
through the most dominant grouping of entrepreneurial spirit and System wide position around
their Plan to Win. McDonald’s provides the customers with high quality of food and better-
quality services in a friendly, hygienic and enjoyable environment at a great value as to make
their customers feel good when having McDonald’s foods and beverages.
McDonald’s takes into account of the customers’ nutrition. Researches had being carried out to
measure and create a menu which match the daily nutrition of their customers. In this busy lives
nowadays, McDonald’s concern with the calories consuming and other diet-related concern from
the foods they provide as they want their customers to stay within their goals for the day.
Besides, McDonald’s aim to inspire and motivate people to live balanced, active lives with their
Balanced, Active Lifestyles (BAL) efforts by bring in the global theme which is “it’s what I eat
and what I do”. Furthermore, McDonald’s introduced children’s nutrition meal named Happy
Meals which were originally designed for young-age children in suitable portion sizes with
essential nutrients such as protein, calcium, iron and vitamins B.
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Continuous Improvement:
In order to comprehend the need for improvement in the construction industry and to better
manage our project and construction companies especially like McDonald. To be competitive in
market, McDonald has provided more consistent quality and value to their owners or customers.
Such goals demand that a continuous improvement (CI) process be established to provide total
quality management. So that McDonald give lot attention to the satisfaction level of it customers
with improve quality standards such as trained employees, improve product quality and improve
performance and exercises a good strategy for its human resources.
First of all, to fulfill the needs of the customers according to their desires or requirement and also
to make its product more competitive, McDonald has improved their products quality. Such as
improving ingredients and nutrients of food stuff. For food allergies, McDonald consolidated all
allergen information into the gradient statement. Besides, according to the nutrition information
of McDonald, their product derived from testing conducted in accredited laboratories, published
resources or from in formations provided from McDonald’s suppliers. It’s based on standard
product formations and serving sizes.
Quality Management By Technique of Total Quality Management
Quality Circle:
Quality Circle is one of the employee participation methods. It implies the development of skills,
capabilities, confidence and creativity of the people through cumulative process of education,
training, work experience and participation. It also implies the creation of facilitative conditions
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and environment of work, which creates and sustains their motivation and commitment towards
work excellence. Quality Circles have emerged as a mechanism to develop and utilize the
tremendous potential of people for improvement in product quality and productivity. A quality
circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on
a regular basis to identify improvements in their respective work areas using proven techniques
for analyzing and solving work related problems coming in the way of achieving and sustaining
excellence leading to mutual uplift of employees as well as the organization. Circle members are
free to collect data and take surveys. It is "a way of capturing the creative and innovative power
that lies within the work force".
It is based on the human resource management considered as one of the key factors in the
improvement of product quality and productivity. Three main attributed:
A form of participation management.
A human resource development technique.
A problem solving technique.
The objectives of quality circle are multi-faced. One of the objectives is a change in attitude. It is
a continuous improvement in the quality of work life through humanization of work. Based on
McDonald believes that good governance is a journey, is not a destination. Accordingly, they
commit to review their governance principle at least annually with a view to continuous
improvement.
Reduced Cycle Time
Cycle time has become a critical quality issue in today’s fast-paced world. Cycle time refers to
the steps taken to complete a company process, such as making an airline reservation, processing
an online order, or opening a retirement fund. In McDonald’s company, the ways they use to
reduce cycle time are by introducing McDonalds McDelivery and Drive-Thru for 24 hours. The
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simplification of work cycles, including dropping barriers between work steps and among
departments and removing worthless steps in the process, enables a TQM program to succeed.
Even if an organization decides not to use quality circles or other techniques, substantial
improvement is possible by focusing on improved responsiveness, acceleration, and
effectiveness of activities into a shorter time. For example, by doing McDelivery, customers do
not have to take a long time and queue up in McDonald’s restaurant to make an order. Besides,
the company can prevent wastes by doing such services. McDonald also introducing Drive-Thru
that will be opening for 24 hours. People just need to stay in the car instead of go inside the
restaurant. Just get in queue, look at the menu and place their order. After that, collect your order
and enjoy your meal! This service is fast and customers will not be bored to eat meals of
McDonald. The workers energy are needed and used up all the time. Workers can cooperate
nicely with their employees and will increasing the company profits. Sine McDonald felt that
those services are effective, so they will continuously use the services and keep on improving it.
Thus, McDonald can process most order within a short time after the order is received. Hence,
McDonald can reduce the cycle time efficiently and effectively.
Critical Thinking Cases of McDonald’s
In dynamic business environment, managers must constantly make decisions so marketers need
to evaluate data and craft appropriate response strategies in fast speed. This is to improve for
better preparing for the next generation business leaders. Critical thinking skills are essential as
for evaluate the situation, identify key issues, analysis and make decision.
McDonald’s has the world largest fast food service retailing chain as it has over 30,000
restaurants in more than 100 countries. There are over 50 millions people eat McDonald’s food
daily. The popular meals of McDonald’s are Big Mac, Chicken Mc-Nuggets, Egg McMuffin
which all of them are not a kind of healthy food for customers but popular as they are easy to
prepare so call fast food. With this, leaders of fast food business should think of a way to add
healthier products such as more fruits and vegetables slide dishes in their menu list and
expediting the trans-fat-free frying medium oil rollout.
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Conclusion:
Throughout this assignment, we learnt the real meaning of Total Quality Management (TQM).
TQM is a very important concept use to apply in an organization or company daily operations.
TQM principles must be supported at all levels of the organization or company as to be effective
in improving quality from the lowest-level hourly employees to the highest managerial
department. TQM is essential to all functional areas of the organization including finance,
marketing, production departments and information system. The process begin with receive and
understand customers’ wants and needs then produce goods and services based on it or even
improve them to fulfill customers’ desires. TQM encourage each member of the organization
remain alert, aware and responsible for their contribution as to stay focus on the quality.
Managers and employees are encouraged by the implementation of TQM as to collaborate across
functions and departments as well as customers and suppliers to identify areas of improvement at
any possible areas. Teamwork, increase the satisfaction of customers, cut down costs are the
elements which emphasize in TQM philosophy. To achieve high standard of quality of the
organization, employees are trained and empowered to make decisions for problem solving.
TQM shift from a bureaucratic to a decentralized approach to control.
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