Redco Tqm Project

Total Quality Management

Muhammad Asif Shafiq 3287 Muhammad Ali Kamal 3285 Muhammad Imran 3292

Redco textile mills

ACKNOWLEDGMENT

All praise to Almighty Allah, the most gracious, the most beneficent and the most merciful, which enabled us to complete this project We feel great pleasure confidence in expressing our since gratitude to our teacher Sir M. Awais Ejaz khan for his guidance, personal support, and friendly attitude for finalizing this project. We would like to express our sincere thanks and appreciations to our colleague and members of Redco textiles who helped us a lot for finalizing the project. Thanks are especially due to our parents, brothers, sisters and friends for their unlimited patience, cordial prayers and kind support, that gave us confidence in our self to complete this work.

Table of contents: 1.0 Executive Summary 1.1 Mission 1.2 Objectives 1.3 Keys to Success 1.4 Scope of the study

2.0 Company Summary 2.1 Company Ownership 2.2 Company History (for ongoing companies) or Start-up Plan (for new companies) and Facilities. 2.3 Company Locations 2.4 Status and Nature of Business

3.0 Products and Services 3.1 Product and Service Description 3.2 Competitive Comparison

4.0 Business partners 4.1 Suppliers 4.2 Retailers and Distributors

5.0 TQM driven customer relations 5.1 Customer perception 5.2 Customer satisfaction 5.3 Is customer the king?

6.0 Business process & TQM Concepts 6.1 Communication 6.2 Feedback 6.3 Employee involvement

7.0 TQM awareness & Implementation 7.1 Who is involved? 7.2 Who leads the Process/Policy? 7.3 What is the USP/UAP? 7.4 What employees feel about TQM standards? 7.5 TQM certification? 7.6 What tools & Techniques they use to ensure quality 7.7 Health & safety

8.0 Your Findings 8.1 Analysis 8.1 Suggestion 8.2 Recommendation

1.0 Executive Summary: This is a report which we have written in quality perspective on the quality process of the Redco textiles first of all we describe that what the Redco textiles is aiming and dreamed about. Then there are some objectives which are followed by the Redco textile after that some critical success factors of this company on the basis of which it is maintaining its position. Next we move in this report towards the summary of the company in which we have mention its ownership, history, location and its nature of the business. After that we move towards the products which are manufactured by the Redco textile and its comparative comparison. Then we have mentioned the Business partners and TQM driven customer relations in whish Customer perception, Customer satisfaction and place of customer is discussed. In this report we also discuss the Business process & TQM Concepts, Communication style, Feedback method and Employee involvement issues. Then what are the TQM awareness & Implementation of TQM concepts and who is involved in it, who leads the Process, What is the USP/UAP for Redco, what employees feel about TQM standards, TQM certification of Redco textile, what tools & techniques they use to ensure quality and Health & safety issues in the Redco textile are discussed after that we have mentioned the our suggestions and Recommendations for this company.

1.1 Mission: “To provide quality products to customers and explore new markets to expand sales of the company. To cultivate a dynamic team for achieving optimum process for companies products for the profitable land and sustainable growth.”

1.2 Objectives: The objectives of the Redco textile mill are as below

• • • • • • • •

To become a reputed textile mill. To become a fully integrated textile group To be capable of budding profitable associations with the world’s leading brand. To become a market leader in it’s field. To emphases on producing innovative and high quality products. To powerful committed workforce. To hire MBAs from leading local & International universities. To achieve the multiple tasks and listen customers carefully fulfill their needs.

All these are taken into consideration to achieve best results to the satisfaction of our valued clients.

1.3 Keys to Success: Redco Textile company has the keys to success are a good administration that knows that the critical success factors can be achieved through perfect performance follow up and quick response to complaints and observations at the moment and on spot. Then quality oriented work and agility and maintaining the stock as per demand. Produced the raw material as per demand, quality checks and balance, performance evaluation of employees, batter infrastructure of the company are the keys to success. There is adequate processing facility for yarn manufacturing, there is a quality storage spaces for the raw and processed material. Then the relations between the management, staff members and workers are cordial to achieve success. 1.4Scop of The Study The Present study will help to analyze the total quality implementations in the textile industry in general and particularly in Redco textile and how for the Redco is successful to carried out these practices in their operations , why the Pakistan textile industry instead of having the same resources as the Bangladesh own still lacking in quality output .the study is based on the personal analysis and the data provided by the management of the Redco Textile which limits the study to Redco textile practices and implementation of TQM.

2.0 Company Summary: The company is summarized as below in the following sub-headings

2.1 Company Ownership:

Redco Textiles Ltd is a public limited company in which firms owners are shareholders (equity holders). Shareholders have limited liability to the extent of their investments in purchasing the equity. Their ownership can be easily transferred by the selling or purchasing of equity.

2.2 Company History, capabilities and facilities: Redcos Textiles is an oldest and largest business in Pakistan operating since 1992 and work as subsidiary of Redco group and certified with ISO 9001, with Authorized Capital Rs. 250000000 and Paid-Up-Capital Rs. 212926000. And CEO was Saif-ur-Rehman but now it is Mrs. Sarah Saif khan. Redco Textiles Ltd is a public limited company listed on the Karachi, Lahore and Islamabad Stock exchanges. Redcos Textile operations include Spinning, Weaving and Power Generation. Redco Spinning Mills has a capacity of 25000 spindles capable of producing 11,000 bags per month of cotton yarn, Slub Yarn and Lycra yarn. Redcos textile ‘s weaving mill has a capacity of 100 air jet looms capable of producing 1,000,000 meters per month of cotton fabric, Lycra Stretch fabric, Slub Fabric and home textiles Fabric of up to 108 width. Redco has its own power generation plant worth US$ 1,000,000 which was installed in 2007 using state of the art GE-Jenbacher (European) 1 Megawatt gas Engines x 4 Nos. Redco Textiles Limited has an annual turnover of Rs. 1.6 billion on average and employs of 1100 talented and hardworking Pakistanis from all over the country. The management team consists of Textile Engineers, Electrical Engineers and MBAs from leading local & International universities.

2.3 Company Locations: The location of its plant is at 3 KM, Kalar Saydan Road. P.O. Box Sagri, Rawat, Pakistan. Tel: +92 5777 610 402-4 Fax: +92 5777 610 401 Email: textiles(@)redcogroup.com The head office is at Redco Arcade, 78-E, Blue Area, Islamabad.

2.4 Status and Nature of Business: Redco textile Ltd is a public limited company with commenced operations in October 1991. it was incorporated under the companies ordinance 1984 and it is listed on Karachi and Lahore stock exchange. Redco’s principle activities include manufacturer and selling of yarn and greige fabric.

3.0 Products and Services: Basically the company which we have selected is not a service based but a quality product oriented company so that’s why its products are as below.

3.1 Product and Service Description: The products of the Redco textile mill are • Yarn • Cotton Fabrics • Denim & Jean Fabric • Denim Fabrics • Grey Fabrics & Cloths • Knitting, Knitted Fabrics • Textile of all Sorts.

3.2 Competitive Comparison: The Redco Textile Company is optimistic about the future and as a result of settlement with U.B.L they will be able to buy bulk cotton at competitive rates and of better quality enabling them to achieve better results as compared to others. Market for yarns and Gray fabrics will be diversified to increase the customer need and reduce dependency on the Far East. Product range will also be increased to cater to the differing needs of the buyers. Fancy and special items like Cavlry Twills, Bedford Cords and Stretch Fabrics will be developed which are being sold at premium prices which is a competitive advantage.

4.0 Business partners: The supply chain management the business partners are the suppliers, distributors and the retailers so these are mentioned as follows.

4.1 Suppliers:

Redco textile mill take the some quantity of yarn from the Nishat mills in case of lack of raw material. On the other hand it also takes the yarn from the National group of companies. And the majority of the yarn has been manufactured by the Redco textile mill. Other suppliers include. • Arshad texiles • Master textiles • Tanveer spinning Shekupura • Model textile Lahore • Silver line Bahawal pur • Fazal textile Muzafarghar And some of its supplier’s quality certification is as follow

1. Arshad textiles We believe quality is not just 'aesthetics,' it is perfection to all parameters involved during manufacturing, bringing with it a product of quality to the end user. We at Arshad Textile Company combine Quality, Perfection and Timing for our customers to suit their convenience. Arshad Textile Company believes in teamwork to build bridges with all our customers.( www.arshadtextile.com) 2. Master textiles

(www.master.com.pk) 3. Fazal textile Muzafarghar: We believe that in textiles, Quality means “Best Raw Material”, “State of the art Machinery” & “Highly Trained and Skilled Human Resources”. The Quality Management at our Mills believes in implementation of all three. (www.fazaltextile.com/html/quality)

4.2 Retailers and Distributors: • • • • • • •

Fareena Dying Master textile Lahore Mushtaq cor. Karachi Parcom Holding Karachi Sadia Fabrics Karachi Salmon taxtile Cills corporations Karachi

5.0 TQM driven customer relations:

TQM driven customer relationship glimpse the company competitiveness so what the company is doing for customer retention and new customer attraction and along with side the loyalty and partnering with house accounts. So there are some customer driven TQM priorities are as follows.

5.1 Customer perception: The customers are given the priority and the yarn is also manufactured on the demand of the customers and quality also maintained according the customers requirements. When we talk to the employees of the Redco then they have told us that they have the core value to continue Growth through creation of sustainable relationships with our customers.

5.2 Customer satisfaction: They also mentioned that the customer satisfaction for textile sector carries great importance like the customer satisfaction for other sectors. Especially, if it is considered that gaining new customers create four times more costs than protecting existing customers from leaving, it can be seen that the customer satisfaction plays a great role for the firms. Customer satisfaction is chosen as brand image, perceived service quality and perceived and product quality. It is very necessary to make sure that right products are available as and when customers want them is key to customer loyalty.

5.3 Is customer the king? Most industries today have already squeezed as much revenue as possible from efficient production and transaction processes and specifically the customer experience. As mentioned above the customers are given the priority. The total customer experience is the sum of every interaction the customer has with an organization, from first contact through after-sales support Total customer experience = customer's product experience + customer's transaction experience + customer's interaction experience Of these factors, the product experience is the most fundamental. Is the product or service excellent? Does it meet or exceed customer needs. These entire things have been

considered by the Redco textiles to meet the customer need and requirement. So that’s why in Redco textile the customers has been given the king position and material is manufactured by considering the customers perception and the quality standers.

6.0 Business process & TQM Concepts: The whole process of the business is very well established and customer oriented. The material is manufactured on the demand and requirement of the customers. Theirs need and quality is at top priority. Though the TQM concepts which we have studies in our subject is not totally implemented but somehow they are implemented like quality checks during the process, but health and safety issue are not properly handled. Even there is supply chain management. But employee motivation and appraisal of employee is adopted somehow.

6.1 Communication: Communication is key to a strong business relationship and this can be the relationship between business and customer and equally important for the internal relationships among different employees within the company. The communication is not so good in the Redco textile. At some places the communication and feedback is improved but ignored at some places. Basically it was the downward communication in the Redco textile which is not an appropriate kind of the communication. And employees have a lot of idea and they are not allowed to share them with the middle or top management. Some employees have been worked for a very long time and they know a lot about the improvements but they are not supposed to share that idea with management. So it is a drawback there.

6.2 Feedback: The feedback system is adopted somehow but in the Redco textile there is not a changing trend of the demand because here the coloring and designing etc is not performed but about quality the feedback from the customer has been taken from time to time but not on the regular basis because the Redco group is quality oriented and on the other hand in website comments and feedback is also not gathered from existing customers and other potential customers.

6.3 Employee involvement and satisfaction: The employee satisfaction in any organization depends on no. of variables like wage rate, work place environment, work life balance compensation for hazardous duty etc. In the Redco textiles the overall satisfaction of blue collar employees is low because the wages paid to them are barely enough to cover the basic needs and the work place environment is hazardous there is no strict policy regarding safety measures for employees like breathing mask ear muff etc. is enforced. The wages do not increased with the passage of time. The white collar employees are satisfied up to some extent. The employee involvement is minimal in the decision making because there is no trend of upward communication.

7.0 TQM awareness & Implementation: The whole process of the Redco textile from spinning to Weaving is organized in a quality oriented some TQM concepts are adopted in detail but some are ignored completely. There are Quality checks during the process, but health and security issue are not suitably managed. Even there is supply chain management. But employee impulse and appraisal of employee is implemented up to some extent.

7.1 Who is involved? :

In Redco textiles mission statement it is focus to create a quality culture and continuous improvements, company top management is very much responsive to the quality element in all the operations and state of the art machines in both spinning and weaving units has been installed to insure quality output. Company is an ISO 9001:2000 certified which is a QMS. Redco has its own power generation plant worth US$ 1,000,000 which was installed in 2007 using state of the art GE-Jenbacher (European) 1 Megawatt gas Engines x 4 Nos. Although company is well aware of the quality aspect for the international trade but the implementations to those standards in daily production and operations are inadequate. The unsecure working environment, the unconformities in processes and the low employee awareness about quality and continuous improvement shows that quality is not the culture in Redco textile operations

7.2 Who leads the Process? Top management determines the process and the policy which is based on the current industry analysis. The decision team include the CEO of the company director ,general manager and the front line managers which compose it a vertical company. In two units of spinning and weaving general manger who leads the shift managers in both the departments are responsible of quality with the help of quality assurance manager.

7.3 What is the USP • • • • • • •

The most color observing fabrics The strength of thread Customized designs UAP best quality looms state of the art spindles Quality thread Client list

7.4 What employees feel about TQM standards? In Redco textile the employees are only feel the quality in the prospective of the customer, they think quality is what which we are supposed to provide to our client.

Employees are not trained about the quality of the processes in which they are working, Occupational health, sound working environment they are not cultured to think about it. The attitude among the employees is very casual. No one follow the rules and regulations of the company. Some implementation is done among the executives but not at managerial level. HR Department is almost useless and only performing two activities. These activities are making salaries and attendance of the employees and workers. They are not working to train the employees and making appraisals to evaluate them. Quality standards are not communicated to front level employees to make a holistic quality culture.

7.5 TQM certification? Increasing rivalry has been making companies more aware of quality to better sell their products and services. Top management of REDCO is also striving for to improve their quality processes company is certified as ISO 9001:2000 which are the general process quality standards, these standards communicate to improve processes under measuring the following steps. 1-Customer relation process 2-Leadership process 3-Resource management 4-Process improvement 5-Management system 6-continuoul improvement system 7-taking of factual decisions 8- Relationship with Suppliers. Redco certified body is United Registrar of Systems entered Pakistan in 1996 to provide world class certification services to leading corporations. Since its inception, United Registrar of Systems, has maintained its top quality service and auditing standards across

all sectors many well known companies like 3m, ICI Pakistan, Engro Asahi Johnson & Johnson, Pakistan State Oil, Reckitt & Benckiser, 3M Pakistan, Pak Arab Refinery Limited. The company cover the following step to certified certain operations. Once your management system is fully documented and has been operating for at least 3 months you may then proceed with registration. The eight steps to certification are outlined below along with the costs:

Steps involved to get URS ISO 9001 Certification Step 1 Complete the Enquiry / Application Form (Please click on the link to go to the form) then submit form to your local office. Step 2 Once URS have received your Enquiry / Application form we shall send you a Core Questionnaire for completion. Step 3 On receipt of the completed questionnaire a formal quotation will be sent to client. Step 4

If client find URS quotation is acceptable, please sign it and return it to your local office. Step 5 We will arrange and conduct an on-site document and readiness review. URS will leave a copy of our report with any findings with you and if satisfactory arrange a mutually convenient date for the on-site audit. Step 6 URS conduct an on-site audit once it is agreed that you are ready to move forward. We produce a report on the findings plus recommendations. Unsuccessful audits may require a re-audit. Step 7 The Certificate of Registration is issued, once all points, if any, have been addressed from the on-site audit. Step 8 Surveillance visits are performed at least once a year but may be more frequent, depending on the size of your company. Notes: An informal (but chargeable) pre-audit visit may be requested to determine readiness for formal assessment.

7.6 What tools & Techniques they use to ensure quality Raw Cotton Quality control&. Fabric Inspection and Quality Control: For quality assurance Redco management use different tools and techniques in both the spinning and weaving units.this process starts form the procurement of the raw cotton form the supplier,in this process the cotton examine with the fibrograpah which tells the quality and the capacity of certain to make a quality thread and in the next step stello meter is used to measure the number of twist per threads .in another process herriness machine is used to check the extra fiber in yarn ,after that the astmmic grade is used to check the strength of the yarn with the defined strength of the thread. After quality check this report send to the production manager to start the production according to those standards,

7.7 Health & safety Like the most of other industries in textiles there is a lot of health hazards for the employees, the worker in Redco textile are not getting the basic health and safety assurance in both spinning and weaving units, company has not yet implemented the OHSAS 18001

in both the spinning and weaving the process from the plucking of cotton bales ,and the to the end process of packing the employees were in the routine dress and there were no safety measure were implemented ,although the sign boards were placed in different processes to take precautionary measure during the shifts, but the over all atmosphere of working was unsecured and the manpower was working without the mask and helmet ,only a dispenser was hired for the first aid which shows the top management is least concern about the health and safety standards in Redco.

8.0 Our Findings 8.1 Analysis 1. Redco textile is a well equipped textile unit in which the top management is well concern about quality but they are failed to create a quality culture

2. Redco is centralized type of the organization which is an obstacle to adopt and maintaine the quality process. 3. There is a strategic communication gap between the top to middle management 4. Technology is not yet implemented and still most of the work in manual 5. Company only use the slogan of the ISO 9001-2000 for the marketing purpose 6. Top management look at quality in the prospective of final product and least interested to bring quality in the overall processes. 7. Internal customer satisfaction is not considered. 8. Redco is not implemented the OHSAS standards to insure the health and safety of their employees 9. There is a lack of leadership in the middle management and the improvement 10. Quality representatives are not well aware of the quality standards and they only consider the quality in the customer and the final product view. 11. There are nonconformities in both the spinning and weaving units 12. Unhealthy environment 13. Employees are not motivated with appraisals and rewards 14. High cost production which minimize the profit margin.

8.1 Suggestion and Recommendation: 1-Redco first of all review their qulaity policy and focus on the quality process not only the final quality prduct. 2-External customer satisfaction through internal customer satisfaction 3-Redco ought to implement OHSAS to increse the loyalty of their internal customer 4-Redco should go for ERP solution to better evaluate the process and to communicate the qulaity measure and to better check the daily productivity and final quality of the product. 5-There is a strong need of leadership to work in teams and to establish a quality culture. 6- Quality representatives should be empowered with hilgh technolgy and measuring tools to examine the processes and to update themselves with the customer quality requirements 7- Involvement of the emplyees can be enhanced by extre benefits and empowerment in decersion making. 8- labour laws should be prevailed properly so that they can be provided with health environment.