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TQM Practices of Aci Salt Industries Bangladesh PDF
TQM Practices of Aci Salt Industries Bangladesh PDF
TQM Practices of Aci Salt Industries Bangladesh PDF
TQM Practices of
ACI Salt Industries Ltd. Bangladesh
Submitted to:
Monika Chakrabarti
Asst. Professor, Dept. of Management Studies
University of Dhaka
12/12/2012
University of Dhaka
Submitted by
2 Organogram 02
5 TQM Questionnaire 09
8 Concluding Remarks 18
Organization Profile:
ACI Salt was launched in August, 2005 and marketed and distributed by ACI Consumer
Brands through its network. ACI has set up its salt refining plant in Rupganj, on the banks of
the Shitalakhya River. The plant produce refined iodized salt through Thermal Evaporation
System. ACI has used technology from China Heavy Machineries Corporation (CHMC) in
establishing the plant. The end product will be of high quality, free-flowing salt with even,
crystallized grains. The iodine content of ACI salt will have a stability of more than 6
months. The project has been undertaken at an approximate cost of Taka 32 crores. Within
the very short period it has been enjoying the pride of the Brand Leader. The best in its kind,
ACI Salt is vacuum evaporated, free flowing and properly iodized. It is also very porous and
free flowing. Iodine is coated in every single grain which makes it an essential product for the
children; the absence of right quantity of iodine in their food may cause mental disability to
them. ACI Salt has won the "BEST BRAND OF BANGLADESH AWARD 2008" for
unparallel customer loyalty beating all the brands in Foods & Beverages category.
The comparative features of ACI Salt and other ordinary salts produced through washing
method are shown below:
1
Organogram:
2
Production Flow Chart:
3
PRE-requisites of TQM in ACI Salt Ind.:
ACI management is committed to provide quality products and for this management
is committed to –
Changing an organization’s culture is difficult and will require as much as five years.
Individuals resist change – they become accustomed to doing a particular process and
it become the preferred way. Management must understand and utilize the basic
concepts of change. They are:
1. People change when they want to and to meet their own needs.
2. Never expect anyone to engage in behavior that serves the organization’s
values unless adequate reason has been given.
3. For change to be accepted, people must be moved from a state of fear to trust.
• Proper planning
Training and education is an ongoing process for everyone in the organization. Needs
must be determined and a plan developed to achieve those needs. Training and
5
education are most effective when senior management conducts the training on the
principles of TQM. Informal training occurs by communicating the TQM effort to all
personnel on a continual basis.
• Structured organization
• Measurement techniques
7
• Paying attention to internal and external customers
Teams need to have the proper training and, at least in the beginning, a facilitator.
Whenever possible, the team’s recommendations should be followed. Individuals
should be empowered to make decisions that affect the efficiency of their process or
the satisfaction of their customers.
Problem solving through forming teams and empower the team to formulate
solutions for the problems
• Desire for continuous improvement
It is tempting to sit back and reset on your laurels. However, a lack of continuous
improvement of the processes, product and/or service will even leave the leader of the
pack in the dust.
TQM Questionnaire:
The quality of a product or service refers to the perception of the degree to which the
product or service meets and exceeds the customer's expectations. Quality has no specific
meaning unless related to a specific function and/or object. Quality is a perceptual,
conditional and somewhat subjective attribute.
No, we do not have direct monetary incentives for encouraging employee suggestions.
But, ACI provide performance bonus to encourage employees to add value and
innovation in the individual job area.
4. If you do, are they individual – based or group – based or for the entire company
employees?
Individual – based.
5. Do you provide any non – monetary incentives to encourage employee suggestion for
process improvement?
9
Yes, we do have non – monetary incentives for providing suggestion for process
improvement. This scheme will cover all the employees working in the Company which
includes field employees also.
Key Criteria:
1. The innovative idea should bring value addition to the existing processes, products
and systems and results in substantial benefits to the Company in terms of finance,
image and productivity. The idea of encouraging innovation is to looking for ways
to improve things, solve problems and generally make things better, more efficient
and more convenient.
2. Before considered to be rewarded, the idea must be implemented at least for a
consecutive period of three months & the value addition to the company after
implementation must be calculated. Whilst accurate costs & benefits may not be
fully quantifiable, the Idea Evaluation Committee & the Value Addition
Calculation Committee will have the sole discretion to decide its merits.
3. The Value Addition Calculation Committee will be consisting of the Business
Manager, CB; Financial Controller & Corporate Finance Manager.
4. In the event a team submits a proposal, the total amount of award will be
distributed to the members by equal proportion.
5. More than one submission is permitted
6. Submissions must be practical and capable of being implemented
7. Ideas must be innovative- in the event that they are already being implemented or
is in the process of being implemented, or is under consideration for
implementation within ACI, they will not be considered as innovative ideas. This
decision will be at the sole discretion of the Idea Evaluation Committee.
Idea submissions may cover a broad range of subjects, including, but not restricted to:
6. If you do, are they individual – based or group – based or for the entire company
employees?
The incentives are given as individual – based for best innovation for process
improvement. Ideas will be collected monthly and the idea evaluation committee will
determine which ideas will be forwarded to the concerned business heads for determining
the possibility of implementation. After three months of implementation, the Value
Addition Calculation Committee will calculate the net value addition of the idea to the
company against different set criteria. If the value addition is significant, the Value
Addition Calculation Committee will forward the idea along with value addition
calculations to the Management Committee. The Management Committee will be the
final authority to give decisions regarding the ideas to be selected for recognition &
reward in the forthcoming Managing Directors Address.
7. In your view, most problems in the production of products/services are related to:
a. The people who are engaged in producing the products/services
a. JIT
b. Kaizen √
c. Business Process Reengineering
d. Benchmarking
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e. None
9. If your organization uses any of the above concepts, please provide the situations
where the above are used.
Cross functional teams are formed to solve the problems and decision making. Moreover,
line managers meet monthly with the subordinates to solve problems.
10. Do you benchmark? Where do you get the data about the best performers in order
to benchmark?
Yes, Benchmarks are provided through evaluating Balance Scorecard of the employees.
11. What are the ways the organization attempts to involve lower level employees in
decision making? Please explain some methods.
12. Although Deming proposed that qualitative objectives, MBO and performance
appraisals should not be used in organizations if they are to focus on quality, what is
your opinion?
13. Circle the number that best describes the firm’s situation:
1 2 3 4 5 6 77 8 9 10
12
6
c. How cautious is the firm about trying something new?
1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
Never Always
1 2 3 4 5 6 7 8 9 10
f. Decision – making is centralized at the top?
Always Never
1 2 3 4 5 6 7 8 9 10
Always Never
1 2 3 4 5 6 77 8 9 10
Never Always
1 2 3 4 5 6 7 8 9 10
10
Never Always
1 2 3 4 5 6 77 8 9 10
Always Never
1 8 10
2 3 4 5 6 7 8 9
Always Never
7 13
1 2 3 4 5 6 7 8 9 10
l. Conflicts of any type are nullified
Always Never
14. For the same type of products or services do you use –
1 2 3 4 5 6 7 8 9 10
a. One supplier
b. Few suppliers
c. Several suppliers √
d. Uncertain
Several suppliers will help to negotiate the cost acquiring raw materials.
18. Do you train the supplier organization so that it knows exactly what you want from
it?
19. Do you visit the supplier organization to know how they produce?
20. Have you formed any sort of alliance with your suppliers (upstream or downstream,
e.g., product alliance, promotion alliance, logistic alliance, pricing alliance etc.)?
please describe.
No.
21. Does top management undergo any training in relation to quality improvement?
Yes
22. Does the top management themselves train others in any of the quality issues?
Yes
23. Does the top management spend time with front line employees face-to-face?
Yes
25. Does the top management spend time with customers face-to-face?
Yes
26. If so, how often?
Questions the Interviewer should answer through observation and interview input
28. Do you think that the current organization structure of the firm is conductive to
TQM?
Yes
29. What artifacts, symbols and behaviors in the organization do you observe that tells
you that this organization’s culture is quality conscious? Explain.
31. How much does this organization spend on management development annually?
BDT. 10,00,000.00
32. Does it appear to you that the organization treats spending on training and
development as cost or investment?
Investment
33. In your view, what is the level of partnership of the firm with its suppliers?
Low High
1 2 3 4 5 6 77 8 9 10
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Concluding Remarks:
The management of ACI commits itself to quality as the prime consideration in all its
business decisions. All employees of ACI must follow documented procedures to ensure
compliance with quality standards.
The pool of human resources of the company will be developed to their full potential and
harnessed through regular training and their participation in seeking continuous improvement
of work methods.
18