“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

1

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:

4

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:

6

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

13

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

16

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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