bireddy_venugopal_Part_2.pdf

Appendix 1

Survey Report on Quality Management Systems

In Indian Companies

Contents

INTRODUCTION_________________________________________________________________________ A-1

OBJECTIVES ___________________________________________________________________________ A-2

QUESTIONNAIRE PREPARATION ____________________________________________________________ A-3

ANALYSIS OF SURVEY RESULTS _____________________________________________________________ A-4

GENERAL INFORMATION _________________________________________________________________ A-4

Overview of Organization Characters _____________________________________________ A-4

Information Regarding Quality System _____________________________________________ A-6

Management Responsibility - Commitment ________________________________________ A-7

Management Responsibility-Customer Satisfaction _________________________________ A-8

Management Responsibility-Quality Policy _________________________________________ A-9

Management Responsibility - Planning____________________________________________ A-10

Management responsibility: Responsibility, Authority and Communication _________ A-11

RESOURCE MANAGEMENT_______________________________________________________________ A-12

PRODUCT REALIZATION _________________________________________________________________ A-14

Purchasing ______________________________________________________________________ A-15

MEASUREMENT ANALYSIS AND IMPROVEMENT _______________________________________________ A-17

QUALITY RESULTS AND SATISFACTION WITH RESULTS____________________________________________ A-19

Quality Results ___________________________________________________________________ A-19

Satisfaction with Quality Improvement Results _____________________________________ A-20

Employee Satisfaction/ Work Environment ________________________________________ A-22

SUMMARY AND RESULTS_________________________________________________________________ A-24

CONCLUSION ________________________________________________________________________ A-26

REFERENCES__________________________________________________________________________ A-27

LIST OF FIGURES

Figure A. 1 Classification of survey by respondents .........................................................................A-4

Figure A. 2 Organization characteristics ............................................................................................A-5

Figure A. 3 Information regarding quality system............................................................................A-6

Figure A. 4 Overall performance - quality management system .................................................A-6

Figure A. 5 Requirement management responsibility- commitment ...........................................A-1

Figure A. 6 Overall management responsibility- commitment.....................................................A-8

Figure A. 7 Requirement management responsibility-customer satisfaction .............................A-1

Figure A. 9 Requirement management responsibility - quality policy..........................................A-9

Figure A. 8 Overall requirement management responsibility-customer satisfaction ................A-1

Figure A. 10 Overall management responsibility-quality policy ..................................................A-10

Figure A. 11 Requirement management responsibility – quality planning..................................A-1

Figure A. 12 Overall requirement management responsibility – quality planning...................A-11

Figure A. 13 Requirement management responsibility - authority and communication.......A-11

Figure A. 14 Overall management responsibility authority and communication....................A-12

Figure A. 15 Resource management................................................................................................A-13

Figure A. 16 Overall resource management.....................................................................................A-1

Figure A. 17 Product realization .........................................................................................................A-14

Figure A. 18 Overall product realization...........................................................................................A-15

Figure A. 19 Purchasing .......................................................................................................................A-15

Figure A. 20 Overall purchasing...........................................................................................................A-1

Figure A. 21 Measurement analysis and improvement.................................................................A-17

Figure A. 22 Overall measurement analysis and improvement...................................................A-17

Figure A. 23 Overall quality results .......................................................................................................A-1

Figure A. 24 Satisfaction with quality improvement efforts.............................................................A-1

Figure A. 25 Overall satisfaction with quality improvement efforts ...............................................A-1

Figure A. 26 Overall employee satisfaction / work environment ..................................................A-1

QM Survey Appendix 1

A-1

Introduction

This study is carried out to improve understanding of Indian organizations, with main criteria

as ISO 9001:2000 quality system requirements. Similar studies such as “[5]” among the

Indian companies’ provided some understanding that shows that majority of Indian

manufacturers are improving quality management practices focusing on customer satisfaction

and treating customer complaints with top priority.

To put in the perspective, governance in Indian firms is mixture of controlled family

conglomerates to state owned companies [12]. After the markets opened for global

competitiveness in 1991, increasing level of product performance, necessity of reliability, a

standard (effective and efficient) system became requirement to every company in order to

stay in the business. However, there are difference in practices of Indian companies before

and after the start of liberalization in terms of usage of management techniques such as TQM,

TPM, and ISO certification. ISO 9000 series of standards became norm for every company

especially for those who are export oriented. The transformation in Indian Industry in

implementation of management techniques makes it clear the capability of adopting Japanese

management practices improve productivity and quality [10]. For example, Sundram Fastners

has won the award for best supplier to GM for number of years in succession.

The main intention of reforms1 is to “inject the desired level of technological

dynamism in Indian industry” and “develop indigenous competence for the efficient

absorption of foreign technology.” [21]. In addition, it hoped for the competitive pressure

will also induce industry to invest much more in R&D. This wish was realized to some extent

with first indigenous car made by TATA in 1998 with the name INDICA 2[22]. Government

continued its help to industries to adopt successful techniques to increase competence of

Indian industries. For example, in quest for successful management techniques,

Confederation of Indian Industry (CII) hired DR Shoji Shiba, Japanese Quality expert to

guide the selected Indian CEOs of successful Indian companies that have core competencies

in TQM to lead the companies in achieving Break through management [16].

Altogether, research regarding Indian industry indicates, organizations are making

good progress. Mainly medium and large industries are able to adopt new technology,

innovation, and modern management techniques, which are necessary for survival. However,

there is still ambiguity about how wide spread and sustainable these practices are. In this

scenario, it is necessary and is of great value to know how Indian companies are doing

1 Industrial policy of Government of India of July 24, 1991

2 A small car for budget-oriented people


A-2

specially those companies that are having collaborations and doing business with other

countries. This group of companies is expected to be active in embracing new technology,

modern management techniques, and use standard systems for managing company activities.

With this study successfully completed, the results will help Indian companies who want to

do business with other countries (or) collaborate with companies of developed countries. In

addition, helps to evaluate how far these Indian companies successfully adapted standard

systems and to enable them compare with practices of companies from developed countries.

Objectives

The prime objective of doing this survey are to gain understanding of QMS in Indian

companies, which are having formal quality management system, secondary objectives are:

1. To collect data regarding activities Indian organizations are not able to

practice with great success

2. To enable to compare Indian organizations practices with German companies.


A-3

Questionnaire Preparation

Most of the questions in the questionnaire [Appendix 4] are prepared using ISO 9001:2000

quality management system requirements manual, some general questions taken from similar

surveys conducted on TQM and related literature.

The questionnaire consists of multiple-choice questions asking for a single or multiple

answers. In addition, at the end of each section space was provided for additional comments,

which can be used to give much needed insight about the section, or communicate important

information.

Survey questionnaire consists of mainly three parts:

Part 1: General information about the organization

Part 2: Information regarding quality system

Part 3: Quality results and satisfaction with results We expected it to take approximately 8 to 10 min to for completion of each part in

this survey. All companies are randomly selected from “Directory of German Companies in

India - I, Collaborations, Joint Ventures, Subsidiaries, 12th

Edition published by Indo-

German Chamber of Commerce”. Letters are sent to Indian companies asking to fill the

questionnaire directly or online at “www.bireddy.com/survey.htm” giving approximately four

to six weeks time.

This survey is based mainly on manufacturing Industries; all the companies small,

medium and large-scale companies participated in this survey are having their main business

activity as manufacturing.


A-4

4

5

5

7

10

Manager Quality Assurance

General Manager

Vice President

Manager(other)

Managing Director

Analysis of Survey Results

Total number of companies participated in the survey are 32, out of which 53% are medium

scale companies (100 to 1000 employees), 38% are small companies (less than 100

employees) and 6.3% large scale or big companies with (more than 1000 Employees). This

survey is based mainly on manufacturing Industries; all the companies small, medium and

large-scale companies participated in this survey are having their main business activity as

manufacturing

Figure A.1 shows the classification of survey respondents according to their job positions.

This indicates responses to the survey came from senior managers and from the higher level

managers in the corporate activity. Thus the results obtained can be considered to be valid

and present high degree of accuracy in presenting respective organisational practices.

The participants who has given reply for the survey are

Figure A. 1 Classification of survey by respondents

General Information

Overview of Organization Characters

Indian work environment is changing rapidly since last decade due to globalization and

embracement of management techniques such as TQM and continuous quality philosophy.

When organizations are questioned about the type of work environment, majority of them

(40%) are having dynamic and entrepreneurial environment where people are willing to take

risks; in addition, the remaining (28%) organizations are like very personal place. The

behavior of managers in the organizations is not consistent; there is no particular behavior

common among the managers. However, many managers tend to act as coordinators and

coaches, helping employees to meet the organizations goals and objectives.


A-5

Cohesion works with managers and employees to improve the organization by focusing on

strategies that improve workers both short term and long term. Cohesion helps companies to

cultivate workplaces that assist people to do their best and have the company prosper in the

process. There is no single common binding principle among the organizations, which said to

be the reason for cohesion. However, commitment to innovation and development, emphasis

on tasks and goal accomplishment are principles uniting the organizations. In general,

organizations emphasize mainly on competitive actions and achievements. This indicates

measurable goals are very important to Indian organizations. Second most important aspect

for organizations is “growth and acquiring of new resources,” readiness to meet new

challenges is always important.

Individual initiatives (37.5%) and achievement of objectives (34.3%) are the most

preferred criteria for organizations to reward their employees. In other terms, organizations

prefer to recognize employees whose innovative ideas and actions immensely benefit

organization. Moreover, individuals who provide leadership and contribute to attaining the

organization’s goals are also rewarded. The objective of customer-orientated business is to

meet the needs of customers, internal or external. Majority of the organizations practice

customer oriented quality philosophy, with this organizations focus explicitly on

“customers”-both external and internal. In addition, 90% of organizations (Figure A. 2) have

measurable goals related to customer satisfaction.

Leading companies in the world, follow continuous quality philosophy. Indian

organizations are very much aware of this philosophy. Results from the present study indicate

90% of organizations use this philosophy. However, only 63% regularly use this philosophy

for continuous improvement of organizational processes. For this purpose, nearly 24% of the

Figure A. 2 Organization characteristics


A-6

0 3 6 9 12 15 18 21

Rarely /Not at all Practice

Practice with out complete commitment

Strongly Practice

companies regularly use cross-functional quality improvement teams; in addition, 62% use

cross-functional quality improvement teams for introducing improvements. Workers

participation in decision-making processes is a part of empowerment in the workplace.

Empowerment involves decentralizing power within the organization to individual decision

makers. Results from study (Figure A. 2) show only 50% of organizations have such a policy

in their organization.

Information Regarding Quality System

In general, the quality management system of the companies participated in the survey, found

to be very good (Figure A.4).

Figure A. 3 Information regarding quality system

Even though only 62.5% of them are certified (Figure A. 2), 73% of them strongly

agree to have established and maintaining a quality manual with strong control of

documentation at all levels. Majority (69%) of them strongly agree to have systems in place

to perform internal audits on quality system from time to time to validate the system.

Figure A. 4 Overall performance - quality management system


A-7

Management Responsibility - Commitment

To satisfy customer, management commitment should be the force for establishing,

implementing, maintaining, and improving the quality management system. The first duty of

management is to communicate the organization the importance of meeting customer as well

as regulatory requirements; establish a quality policy and objectives; conduct management

reviews; and ensure the availability of resources.

Results from the study showed that majority 63% of the organizations have exhibited

commitment in establishing suitable quality policy and quality objectives. In addition, 62% of

them strongly agree to the fact that management ensures the availability of resources to

achieve objectives. However, the regular review of suitability of quality policies and

objectives takes place only in 33% of organizations, in the remaining 43% organizations

review takes place, but do not seems to be completely satisfied.

It is apparent from the survey that, majority (60%) of the organizations management

behavior is consistent with the organization’s values relevant to quality and CQI. However,

only 43% shown strong commitment in articulating organizations values relevant to quality

and continuous quality improvement. In addition, strong commitment to act on suggestions

and generating confidence among the employees that efforts to improve quality will succeed

can be seen only in 50% of organizations.

Figure A. 5 Requirement management responsibility- commitment


A-8

0 3 6 9 12 15 18



Strongly Practice

total

Figure A. 6 Overall management responsibility- commitment

Majority (53.3%) of organizations have management strongly committed in

establishing strong quality policy and quality objectives, providing resources to achieve

objectives, making changes needed to improve the quality, (Figure A. 6). However, majority

organizations should commit more to “reviewing the suitability of quality policies and

objectives” and “articulating values relevant to quality and continuous quality improvement.”

Management Responsibility-Customer Satisfaction

Management responsibility towards customer should ensure that customer requirements are

determined and met with the aim of improving satisfaction. Results indicate majority of

organizations (Figure A.7) need improvements (52%) in assessing customer needs and

expectations; however, 38% of organizations are able to do good work in this regard.

Customer complaints are studied systematically in majority (52%) organizations to identify

patterns and prevent from recurring. Strong practice collection of customer data to improve

services is seen only in 43% of organizations, where as only in 36% organizations

systematically use data on expectations and satisfaction in developing new products.

Figure A. 7 Requirement management responsibility-customer satisfaction


A-9

0 3 6 9 12 15 18



Strongly Practice

Considering all the activities necessary for establishing system to satisfy customer

(Figure A. 8), data suggests about 40% of the organizations are systematically doing all the

activities. Nevertheless, majority of organizations needs to improve their efforts in “using

data on customer in designing new services and products” and “assessing customer needs and

expectations” in order to realize customer satisfaction.

Management Responsibility-Quality Policy

Management should ensure that the quality policy is appropriate to the organization; commits

to continuous improvement and is communicated and understood within the organization.

Activities related to quality policy such as establishing proper quality policy, reviewing it

periodically are performed well in Indian organizations.

Figure A. 9 Requirement management responsibility - quality policy

Figure A. 8 Overall requirement management responsibility-customer satisfaction


A-10

0 3 6 9 12 15 18



Strongly Practice

total

Figure A. 10 Overall management responsibility-quality policy

Results indicate (Figure A. 10), 56% organizations are systematically doing all the

activities. However, improvements in organizational efforts are necessary in “communicating

policy so that it is well understood” and “reviewing periodically for continuing suitability.”

Management Responsibility - Planning

Planning should ensure measurable quality objectives consistent with quality policy

established at all functions and levels within the organization. Data from survey indicates

only 33% of organizations have strongly established measurable quality objectives for all

functions. Majority of organizations (55%) are performing well in documenting procedures

for key activities. In contrast, only 31% organizations are doing exceedingly well in

“identifying and allocating, resources and activities needed to achieve quality objectives.”

Study (Figure A.12), indicates only 37% of the organizations are systematically doing

planning activities. It shows efforts are necessary in improving organizations ability in

“establishing measurable quality objectives for all functions and levels” and “identifying and

allocating, resources and activities needed to achieve quality objectives.”

Figure A. 11 Requirement management responsibility – quality planning


A-11

0 3 6 9 12 15 18



Strongly Practice

total

Figure A. 12 Overall requirement management responsibility – quality planning

Management responsibility: Responsibility, Authority and Communication

Management should ensure that responsibilities and authorities are defined and

communicated within the organization. In addition, appropriate communication processes

should be established for effectiveness of the quality management system.

According to study, in 44% of the organizations, responsibilities and authorities are

clearly defined and communicated; remaining organizations needs improvements in this

regard. About 41% surveyed organizations have been active in working for establishment,

implementation and maintenance of quality management system through the appointment of

key management personal; however, 41% of organizations do agree to have responsible

management personal yet to reach complete satisfaction with the appointment.

Figure A. 13 Requirement management responsibility - authority and communication


A-12

0 3 6 9 12 15


Practice with out complete

commitment

Strongly Practice

total

Figure A. 14 Overall management responsibility authority and communication

From the study, it can be said that only 37% of organizations have complete

awareness of customer requirements throughout the organization. In addition, only 27% of

organizations strongly agree to have a very good communication system for an effective

QMS.

Considering activities needed for establishing responsibility, authority, and

communication systems (Figure A.14), results indicate altogether only 43% organizations are

successful. However, majority of organizations needs improvements, especially in

“establishing proper communication process” and “developing awareness of customer

requirements.”

Resource Management

Organizations should plan and manage all required resources, such as human resources,

facilities, equipment, and work environment. Additionally, appropriate resources are to be

identified, planned, made available, used, monitored, and changed as per necessities. Data

from the study suggests only 41% of organizations able to provide and maintain

infrastructure necessary to assure product /service quality. However, 48% of organizations

are not lagging far behind in doing so.

Human resources are most neglected part of managing resources, as we can see

from this study, only 23% organizations provide the necessary education and training to staff

for identifying and acting on quality improvement opportunities. Altogether (Figure: A.16)

only 23.3% of the organizations are having the suitable system to perform activities for

managing resources.


A-13

0 3 6 9 12 15 18



Strongly Practice

total

Figure A. 15 Resource management

Results clearly indicates that management of Indian organizations should give

immediate consideration human resources, education and training in how to identify and act

on quality improvement opportunities, training in statistical and other quantitative methods

and education and training to improve job skills and performance.

Figure A. 16 Overall resource management


A-14

Product Realization

Organizations are required to plan and develop all the processes needed for product

realization. Planning of should be consistent with the requirements of the other processes of

the quality management system. Majority (63%) of the organizations have clearly defined

quality objectives and requirements of every product they produce. Before defining product

for manufacturing 46% of the organizations collect clear and specific information from the

customer; however, 39% organizations work needs improvement. Data indicates 47% of

organizations have established, documented product specific process; however, remaining

43% organizations working on it has not reached the desired performance level.

Figure A. 17 Product realization

Reviewing the organization capacity to ensure the delivery of defined product/service

is done only in 40% organizations; but remaining 47% of organizations are working to

achieve the desired satisfaction level. An effective communication system is there only in

35% of organizations to handle the customer for providing product information, handling

enquires.

Considering all activities, study found (Figure: A.18) only 46.6% of organizations are

having the suitable system needed for product realization. Results clearly indicate majority of

Indian organizations need to work on developing communication system for effective


A-15

0 3 6 9 12 15



Strongly Practice

total

communication with customers and review the organization capacity to ensure the ability to

deliver product.

Figure A. 18 Overall product realization

Purchasing

Organizations procurement policy should ensure that purchased product conforms to

requirements to evaluate and select suppliers based on their ability to supply product in

accordance with the organization’s requirements.

Figure A. 19 Purchasing

Selection of suppliers that provide materials and services is done mainly through

established and documented criteria. Results show only 35% organizations follow such a

supplier evaluation procedure while majority of 48% yet to follow evaluation procedure

successfully. Involving suppliers is critical to improve products performance, for this purpose

48% organizations work closely with suppliers to improve the quality of their products and


A-16

0 3 6 9 12 15



Strongly Practice

total

services. However, 41% of organizations are working towards developing relationships with

suppliers to improve the quality.

Most of the Indian organizations (45%) are active and have standard system for monitoring

the supplier’s performance so that quality of the final product will bear no ill effects with

time, but significant number (41%) of organizations have a system for monitoring the

supplier’s performance which is yet to reach desired performance level. While developing

new products only 31% of organizations involve suppliers to inform them about the new

products and collect innovative ideas for maintaining lasting relationship.

Considering activities needed for supplier management in organization (Figure A.20)

only 45% organizations are systematically doing all such activities. However, results clearly

indicate that organizations need improvements in particular, in involving suppliers while

developing new products and evaluating supplier.

Figure A. 20 Overall purchasing


A-17

0 3 6 9 12 15 18 21



Strongly Practice

Measurement Analysis and Improvement

Organization is required to implement monitoring, measurement, analysis, and improvement

processes to demonstrate conformity of the product, to ensure conformity of the quality

management system and to continually improve the effectiveness of the quality management

system. In this process, organizations should use all applicable methods, including statistical

techniques where necessary.

Figure A. 21 Measurement analysis and improvement

Organizations participated in the study are customer oriented and have measurable

objectives related to customer satisfaction. Study indicates customer satisfaction is monitored

regularly in only 52% of organizations to know whether organization actually meet customer

expectations. In addition, products are checked and monitored carefully in 48% of

organizations to ensure the customers gets defect free products.

Figure A. 22 Overall measurement analysis and improvement


A-18

As found in any modern organizations, 45% of organizations have standard system in place

to take action and eliminate the cause of non-conformities, and prevent their reoccurrence. In

addition, 45% of the organizations strongly agree to have system to eliminate potential cause

of non-conformities in order to prevent occurrence. The use of statistical tools to monitor and

measure product and process is very poor, as the study found only 17% of organizations

strongly use the statistical tool to monitor product and process and in about 48% of

organizations using statistical tools their application is limited. Further, only 17 % of

organizations actively works and analyze the appropriate data to demonstrate the suitability

and effectiveness of QMS.

Considering activities needed to carryout measurement analysis and improvement,

study (Figure A.22) found that only 16.6% organizations systematically doing all such

activities. Results clearly indicate, substantial organizational efforts needed in continuous

improvement activities such as “use of statistical tools to monitor and measure product and

process” and “analyzing the appropriate data to demonstrate the suitability and effectiveness

of QMS.”


A-19

0 3 6 9 12 15

Poor Quality Results

Good Quality Results

Very Strong Quality Results

total

Quality Results and Satisfaction with Results

Quality Results

Quality results are organization`s achievements with their efforts for success, growth and

well-being of all the employees. Three factors are considered for evaluating quality results

(or) success of an organization

• Success in simplifying how products and services are provided.

• Increase in quality of products and services.

• Measurable cost reductions without compromising on quality of the product/service

they provide

Organizations are working hard to achieve good quality results, it is evident from this

study that about only 28% of organizations very successful in simplifying how products and

services are provided with about 49% of organizations are not lagging behind in doing it with

complete satisfaction.

From the past few years, quality of products and services of the organizations have

grown steadily, over 47% of organizations strongly agree to have definite measurable

improvements in the quality of their products and services. In addition, 37% of organizations

see improvements in quality of products, but are still not convinced with results. Majority of

organizations achieved measurable cost reductions; however only 43% of organizations

strong results in this regard. In addition, 37% of organizations could see reduction in cost but

are not completely satisfied with their performance.

Interestingly over all, quality results of the organizations are relatively good, (Figure

A.23) with 43.3 % of organizations are doing very well and are having excellent quality

related results. In contrast, 36.6% of organizations are not completely satisfied with their

results and think they should have achieved more.

Figure A. 23 Overall quality results


A-20

Satisfaction with Quality Improvement Results

As we can see from results (Figure A. 24), only 43.3 % of companies are having excellent

quality related results. These results depict majority organizations needs additional efforts for

increasing efficiency and effectiveness of their processes. Study indicates organizations

realized the needs for extra efforts with only 23% of companies are completely satisfied with

their efforts to improve quality.

Management understanding of quality in Indian organizations is good. Importantly,

about 53% of companies believe their management has good understanding of quality, and

43% of organizations should put efforts and improve their understanding of quality.

Sixty three percent of organizations strongly follow the principles of continuous

improvement of quality; however, commitment to continuous improvement of quality exists

only in 56% of companies. From the results (Figure A. 24), it is known only 23% of

organizations providing necessary education and training; similar result is reflected in their

satisfaction level of training provided. Result shows only 23% of organizations believe they

are providing excellent training and completely satisfied. However, the majority of the

companies (66%) believe quality of the training provided to employees is not sufficient and

certainly, improvement is essential.

Altogether, 27% organizations have proper communication system, which also

reflected in the overall ability to communicate about quality in the organization. In contrast,

Figure A. 24 Satisfaction with quality improvement efforts


A-21

0 3 6 9 12 15 18 21

Not at all Satisfied

Somewhat satisfied

Completely Satisfied

total

only 33% of companies are completely satisfied with their ability to communicate the quality

across the organization; and majority (60%) thinks that improvement is necessary.

One can say that if employees are active in giving suggestions, they are willing to see

company succeed. However, only 33% of organizations report their employees are active in

giving suggestions for improvement of quality. In addition to, the majority of (56%)

organizations are not completely satisfied with the level of employee participation in giving

suggestions and sees scope for improvement. Only 30% of companies are completely

satisfied with their ability to use resources effectively but the majority of (70%) organizations

report there is not completely satisfied and believes to work hard for effective utilization of

resources.

Regarding overall performance of the organizations (Figure A. 24), only 33%

companies are completely satisfied with their performance and have good growth prospects

through happy customer and satisfied employee. However, majority (60%) have their

position not completely secured. They are required to invest their efforts towards achieving

customer satisfaction, employee satisfaction, improve long terms growth prospects and

profitability.

• In this present study, considering many aspects stated below which are

necessary for good quality management, Efforts to improve quality

• Board understanding of quality

• Board commitment to continuous improvement of quality

• Quality of training provided

• Ability to communicate the quality across the organization

• Level of employee participation in giving suggestions for improvement of

quality

• Effective utilization of resources

Figure A. 25 Overall satisfaction with quality improvement efforts


A-22

• long-term growth prospects, customer satisfaction, employee satisfaction and

profitability

Study clearly illustrate (Figure: A.25) only 27% organizations are completely

satisfied in terms of quality improvement efforts. However, majority of (63%) organizations

are merely satisfied and there is considerable work to be done to get desired quality

improvement results.

Employee Satisfaction/ Work Environment

Generally it is believed that opportunities for employees to use skills is quite good in Indian

organizations, with majority 57% of companies are completely satisfied with opportunities

employees are having to use skills and abilities better and about 43% of the companies say

that there is room for improvement. Indian companies not only provide opportunities for

employees to use their skills but also recognize the employees’ contribution in the success of

the company. In this regard majority (53%) of companies are satisfied with their management

culture of recognizing (praise, promotion) employees for their achievements and for 43%

organizations there is still work to be done in encouraging employees by recognizing their

achievements in proper way. Majority of managers (63%) participated in the survey are

completely satisfied with the feeling of accomplishing something worth in the company.

However, one has to interpret this carefully as the managers are those who are having the

authority to do things; one cannot say the same is true for all the employees in the company.

Process changes are common in any organization, but there exist always some

difficulty to transfer the good optimized process to other departments or other parts of

organization. The ability to spread process changes to other parts of the organization, which

took part in the survey, is good; however, only 43% of organizations completely satisfied

with their ability to spread process changes, and about 47% organizations saying there is

definitely room for improvement in their organizations ability to undertake necessary

changes. Gaining support for process changes is very important for improving the efficiency

and introducing new technology. It was found that only 37% of the organizations are satisfied

with the support they are getting for process changes and about 60% of the organizations are

not completely satisfied with support they are getting for process changes and sees room for

improvement.

There is need for organizations to see workforce is motivated. This reveals health of

organization and discloses how many are willing to work hard for the organization. From the

survey it is evident that only 57% of those participated in the survey showed, completely


A-23

0 3 6 9 12 15 18

Not at all Satisfied

Some what satisfied

Completely Satisfied

total

motivated to see company succeed and about 43% are happy to see company succeed but

seems to be less motivated than others.

Considering all the objectives of work environment / employee satisfaction such as

• Opportunities for employees to use skills

• Getting recognized for their work

• Satisfaction with the feeling of accomplishing in the company

• Ability to spread process changes to other parts of the organization

• Gaining support for process changes

• Motivated to see the company succeed

• Having exciting work environment

Results (Figure: A.26) obtained from the study revealed, majority of (53%)

companies are completely satisfied with present situation having conductive work

environment with satisfied workforce.

Figure A. 26 Overall employee satisfaction / work environment


A-24

Summary and Results

The study "Quality management in manufacturing enterprises in India" says: organizations in

India are working towards implementing and operating a determined quality management

system.

Though organizations are embracing modern systems, however majority of them are

yet to successfully implement and achieve success Our study shows almost all the companies

(90%) are pursuing excellence through philosophy of continuous improvement and customer

orientation. For this purpose, 83% of the companies use cross-functional quality

improvement teams in introducing improvements in organizational processes. In addition,

nearly 75% organizations have their quality systems certified. In general, the quality

management system of the companies participated in this survey found to be very good, with

73% of them systematically established and maintaining a quality manual with strong control

of documentation at all levels.

Over all management commitment in the organizations participated in this survey is

good with majority of (53.3%) organizations’ are having management strongly committed in

establishing strong quality policy, quality objectives and communicating them to

organization. Even though customer satisfaction was given high priority, observations

revealed only 47% of the organizations are systematically doing all the activities such as

assessing customer needs and expectations, studying customer complaints, collecting data

from customers and use data on customer expectations and / or satisfaction in designing new

services and products.

The performance of activities related to quality planning is not encouraging; only 37%

of organizations are performing all the activities such as establishment of measurable quality

objectives, documenting procedures for key activities identifying and allocating resources

and activities needed to achieve quality objectives to complete satisfaction.

Communication system is

essential for effective and efficient running of any organization. Results from this study

showed, good communication system prevails only in few organizations; only 27% of

organizations have established a very good communication system and 57% of organizations

should improve in their communication system, necessary for effective implementation of

QMS. Performance of the activities related to resource management in Indian organizations is

not good. This study found only 23.3% of the organizations doing excellent resource

management activities. These activities include allocation of sufficient resources for


A-25

implementing, maintaining and improving QMS providing education and training the staff

and infrastructure to achieve conformity to product requirement. In addition, majority

(56.6%) of organizations have to improve resource management activities in realizing

organizational goals.

Activities related to purchasing such as, evaluation of supplier, and working with

suppliers to improve the quality and developing new products are being performed very well

by Indian organizations. This study found, about 45% of organizations are having the

excellent system while the remaining 45% of organizations agree to be working on the

criteria to perform all the related activities. Indian organizations are conscious about

customer satisfaction, majority (52%), collect information about customer satisfaction to

know whether organization actually meet customer requirements. In addition, products are

checked and monitored carefully to avoid defective products reaching customer. As found in

many modern organizations, study found only 45% of organizations have standard system in

place to take action to eliminate the cause of non-conformities and also to eliminate potential

cause of nonconformities, and the remaining organizations need improvements in this regard.

The use of statistical tools to monitor and measure product and process is very poor;

only 17% of organizations strongly use the statistical tools to monitor product and process

and in 48% of organizations using statistical tools, their application is limited. In addition,

only 17 % of organizations actively work and analyze the appropriate data to demonstrate the

suitability and effectiveness of QMS.

Taken together, quality results of the organizations are reasonably good. From the

study, it was found that 43.3 % of organizations are doing very well and are having excellent

quality related results considering the criteria in simplifying how products and services are

provided to improve quality of products and services, and reduce the costs.

It was clear from the study that only 27% companies are completely satisfied with

their quality improvement efforts and all other activities they are undertaking related to QMS.

Majority (63%) organizations are merely satisfied with their efforts and there is considerable

work still to be done to get desired results.

Conductive work environment is very important to make employees interested in their

job and get desired results. Results obtained from the present study showed, majority of

(53%) companies are completely satisfied with present situation of having conductive work

environment and satisfied workforce. However, about 43% organizations are not completely

satisfied with their work environment and believe there are definitely many necessary

improvements to be made to make work environment more conductive.


A-26

Conclusion

Quality management systems have been implemented in almost all manufacturing

enterprises in India especially from the beginning of economic liberation with the goal of

supplying products of outstanding quality to the customers and ensure profit for organization.

Internal organizational efforts to achieve good results and profits are worth taking

note; they are working hard on every aspect required for success through customer

satisfaction. Establishing world-class quality management system has been given primary

importance. Even though they are working to achieve their goals with a world class overall

efforts, there remained a considerable gap with the ideal situation compared with good

management systems. Many organizations believe they have to work hard to fill those gaps

and achieve success. In every aspect of QMS, only 50% of organizations have excellent

systems to fulfill all the requirements necessary and about 35% organizations are having

system in place to perform various activities necessary for good QMS, but yet to do with

complete satisfaction. However, gap remains between them and those of world class.

Study indicates altogether 40 % companies are showing excellent performance and

can compete with the best.. In addition, 30 to 40% of companies need to work hard in various

aspects of QMS such as using statistical tools, providing training, and establishing proper

communication system and resource management. Remaining 10 to 20% organizations are

performing poorly in many activities related to QMS. Their management should take

strategic decisions, to establish and perform all the activities needed for having a decent

QMS.

One has to take care when reading the results of this survey as study is based only on

32 organizations, which are into manufacturing at least for part of their business and are

based in India having some sort of collaboration with German companies. Even though

survey sample is not big enough to conclude anything definitely, study provides information

about organizations work with respect to quality in implementing various aspects of QMS.

There is definitely a scope to study further, with larger samples by visiting these companies,

interacting with the employees and find out actual situation on site.


A-27

References

[1] Critical success factors of TQM: A select study of Indian organizations AYOOB A.

Wali, S. G. Deshmukh and A. D. Gupta, Production Planning & Control, 2003, Vol.

14, No. 1, 3–14

[2] Quality management practices of ISO vs non-ISO companies: A case of Indian

industry

[3] Atul Gupta Lynchburg College, Lynchburg, Virginia, USA, Industrial Management &

Data Systems, Vol 100 Issue 9 Date 2000 ISSN 0263-5577

[4] EPW Special Article October 11, 2003, India's Growth Chase High Aspiration, Low

Inspiration by Narendra Jhaveri

[5] Benchmarking Quality Management Practices in India Sharad K. Maheshwari and

Xiande Zhao, Benchmarking for Quality Management & Technology, Vol. 1 No. 2,

1994, pp. 5-23.

[6] Manufacturing Excellence and Global Competitiveness Challenges and Opportunities

for Indian Industries, Pankaj Chandra and P R Shukla Paper 123

http://www.decisioncraft.com

[7] Major Indian ICT Firms and Their Approaches towards Achieving Quality* by

Dilip Dutta & Anna Sekhar, ASARC Working Paper 2004-04

[8] Practice of manufacturing strategy: Evidence from select Indian automobile

companies

[9] G. S. Dangayach and S. G. Deshmukh Int. j. prod. res., 2001, vol. 39, no. 11, 2353-

2393

[10] India's drive to rule the world By Kunal Kumar Kundu, 2004 Asia Times Online Ltd.

[11] Mr. M.N. Shivaram, Promoting business and technology incubation for improved

competitiveness of small and medium-sized Industries through application of modern

and effective technologies in India, Director, SJCE-Science and Technology

Entrepreneurs Park, Sri Jayachamarajendra College of Engineering, Mysore, India.

[12] India’s Corporate Culture: A Potential Source of Competitive Advantage, Vishal Jain,

April 6, 2004

[13] Zipping in the fast lane by V.Jagannanthan 2004

[14] QM in Indian Companies by Haresh J.Jani 2004

[15] TVS group: smitten by Deming by V.Jagannathan Jan 2004

[16] Break through management: Mind over Mantra by V.Jagannathan 2005

[17] Asia’s first ISO certified saloon in Chennai by V.Jagannathan Jan 2004


A-28

[18] A Minitab Guide to Statistics 2nd

Edition by Ruth Meyer, Krueger

[19] Data construction and Data analysis for survey research by Raymond Kent

[20] How to Manage, Analyze, and Interpret Survey Data 2nd

Edition by Arlene Fink

[21] http://siadipp.nic.in/publicat/nip0791.htm

[22] http://www.tata.com/0_about_us/presentation/Tata_Group_presentation_final.pdf

Appendix 2

Practices of Local oriented Small Scale Industries in India-An Interview

Case study

Contents

INTRODUCTION.......................................................................................................................................A-31

OBJECTIVE .............................................................................................................................................A-33

PRESENTATION OF THE STUDY ...................................................................................................................A-33

SUMMARY OF CASES ..............................................................................................................................A-34

Sri Raghavendhra Painting and Powder Coating Works.....................................................A-34

Phanindhra Micro Tech ..............................................................................................................A-35

Mining Products for Bore Well....................................................................................................A-36

High Vacuum Equipments Manufacturer...............................................................................A-37

Potluri Engineering Industries .....................................................................................................A-39

Annapurna Industries ..................................................................................................................A-40

Tarun Engineering Works ............................................................................................................A-41

SUMMARY ..............................................................................................................................................A-42

CONCLUSION ........................................................................................................................................A-43

A-31

Introduction

The SSI Sector plays a vital role in the growth of India, and contributes nearly 40% of the

gross industrial value. It also creates largest employment opportunities, next only to

Agriculture. SSI Sector plays a major role in India's present export performance by

contributing 45%-50% of the Indian exports. However, non-traditional products account for

more than 95% of the SSI exports. Sickness in the small-scale sector is a major concern, and

a large number of SSI units are sick with little scope for improvement. Most of SSI units go

sick due to inefficient management, over-staffing or obsolete production equipment, and

techniques [5]. Sickness in Industrial sector results mainly in wastage of resources, loss of

production and increasing unemployment [1].

There are many inherent weaknesses in the Indian SSI Sector, which can be listed as

follows [2]

:

• Obsolete Technology

• Un-competitive prices

• Poor quality

• Costly credit

• Weak infrastructure backs up like power, roads, communication, etc.

• Plethora of labour legislation.

• Lack of cohesion among SSI units.

• Ineffective Associations.

• Lack of information

• Lack of international exposure and sensitivity to the implications of the WTO

agreements.

• Lack of standards conforming to international standards.

To tackle these weaknesses it is necessary to understand their practices and develop

strategy and action plans to solve them. According to [3] the need of the hour is focused

assistance aimed at improving quality and productivity. Further, should be encouraged as

breeding ground for innovation and technology development where it becomes the

technology sources for larger companies. Concerning the practices adapted by SSIs lot of

information available at Government of India websites pertaining to different statistics

(exports, production, profitability) policies, facilitations. Similar information is also available

from various studies regarding the SSIs practices with respect to infrastructure available,

exports, production in different sectors. In contrast, detail information is not available

regarding the actual day-to-day running of company, quality management practices, and their

understanding of quality concepts. However, it is a known fact that available information

about nature of products, technology available, exports, growth rate, and type of industry

gives to some extent some insight into their management practices. Government being aware

A-32

of practices tried to develop initiatives to promote quality management and to increase

competitiveness in SSIs. One such initiative is a one-time financial incentive scheme in 1994

for encouraging SSIs to acquire ISO-9000 (or its equivalent) certification. Under this scheme,

75 percent of charges for acquiring certification are reimbursed to the SSIs, subject to a

maximum amount of Rs.75000 for each eligible SSI. Accordingly, between March 1994 and

March 2002, about 2376 SSIs availed this financial incentive. These ISO certified SSIs

constitute 0.08% of total number (2.849 million) of registered SSIs in the country. Fifty six

percent of these registered organisations are related to engineering goods industries.

When it comes to the understanding of SSIs there is a source [4] which provides some

understanding of the management practices, their awareness about quality, problems, and

structure. Study [4] indicated that managers tend to be more flexible as their education level

increased, but, only 13.64% were graduates owning SSIs and that only 2% of owners had

technical education. Further, 4% of the owners/ managers had taken formal training on how

to run business and around 25% started business with out formal training or experience. The

report pointed out those organisations faced decreased out put, with about 40% organisations

utilizing only 50% of its capacity. The main reason is being lack of demand, non-availability

of raw material, employee problems, and competition. The average employment / each unit is

around 11 and all the organisations are locally based and targeting local markets. On an

average engineering based industries target 80% of their market locally. However, the report

[4] lacked in-depth knowledge into the how quality being managed across engineering based

organisations. The present study will try to address this gap to enable to better understand

quality management practices in SSIs. This present study however, will not able to give

complete picture of practices but throws light on practices of engineering based industries

SSIs, which are local oriented.

A-33

Objective

The main objective of the study is to improve understanding of small-scale industries, which

are local oriented; regarding their daily work practices and their understanding of quality

management.

Presentation of the Study

In presenting the results, summary is presented in the fallowing sections. Besides presenting

the summary of results, author will present a summary of each individual case separately to

understand the practices and working situation in organizations participated in the study.

Company No. of Employees

Sri Raghavendhra Painting & Powder Coating Works 11

Phanindhra Micro Tech 4

Sri Rama Mining Products for Bore well Ltd 23

High Vacuum Equipments Manufacture 13

Potluri Engineering Industries 10

Annapurna Industries 10

Tarun Engineering Works 9

Table A2.1 List of interviewed organizations

A-34

Summary of Cases

Sri Raghavendhra Painting and Powder Coating Works

This company was established and managed by Mr. Nageswara Rao since December 1993 in

Hyderabad. The present employee number is 11, and has increased from 5 when the company

was founded in 1993. Company has five main customers who accounted for 80 to 90% of

total business. All of them are locally based, and is intended to capture the local market. Type

of quality checks conducted for quality assurance are 100 % inspection by the workers in the

company at every operation point and 100 % inspection by customer at the point of delivery.

Even after 100% inspection at every stage, company has 5% rejections at final inspection. It

is important to note that there are only 3 to 5 operations involved from receiving the raw

material until finished product. The main reason for defects was defective material itself.

Company is unable to sustain the cost of high quality material to reduce defects; therefore,

company is satisfied with quality of the product.

Running of company: Every normal day starts with a group meeting lead by

owner/manager and work is assigned to all workers; necessary changes take place to normal

work plans if there is urgency from any customer.

Company does not provide training to workers, as the result all the workers had

experience before joining the company and highly skilled in their respective areas. Workers

are well informed about their responsibility and authority and are aware of customer

requirements. Company has positive experience with workers. Workers are active in giving

suggestions for improvements and all the suggestions, which considered benefiting company,

are accordingly implemented.

Customers are very much satisfied with the product; they communicate positive

experiences and inform that they are getting awards while placing excess orders for the work

done. It shows that customers are continuing their relationship and are willing to place more

orders based on the performance; and shows there is scope to increase the production

capacity as the number of orders increase. However, the quality of product seems to be very

satisfying but the profit margins are reduced because of heavy competition. Recently

company has expanded its product range to powder coating; previously used to work with

only painting.

Future Plans: The Company has good reputation and plans to increase production

(but no plans for expansion as they are not working to full capacity); there is no problem of

marketing due to the good reputation.

A-35

Phanindhra Micro Tech

It is a single owned company, which has been operating since 1996. Present number of

employee is four, which is decreased from six when started in 1996. This company

manufactures dies and has three main customers who are accounted for 80% of business, out

of which single customer accounts for 50% of business, through sub-contracting of structural

fabrication. There are no quality initiatives in this company. Quality checking is done after

every operation. No special procedures, documentation is done to show the quality related

data. For example: number of breakdowns of machine during the week, total number of

rejections, and number of defective products. Though the mechanical problems are solved

immediately, there is no tracking of the problem about how often it is repeating and where

and in what conditions. The manager is of opinion that the customer satisfaction is about 80-

90%, and this is based on the repeated orders and no negative feed back from the customers.

Customer satisfaction is evident by the maintainance of long-term relationship. There seems

to be no incentives for workers other than monthly wages and the relationship with the

workers in the company is not that good as said. However, every new recruit is given

thorough training before being assigned any responsible work. There is 90% of realisation of

resources. As said by owner this company has no specific plans for expansion (buying new

machines) on basis of lack of clarity about orders.

Comments: As a very small company with just four employees, this company seems to do

well in itself with out any formal procedures. However, the main disturbing fact is to see is

lack of documentation of problems of a given machine, or performance of employees. Lack

of incentives or to say motivation from owner could be the reason for employees not to stay

longer in the company. It is evident from the total number of employees that has decreased to

four from six when the company started. This company seems to have long-term relationship

with couple of customers, and was found to be not having any interest to increase business.

As a single owner of small company he is satisfied with present position of company but says

it could be very difficult in feature.

A-36

Mining Products for Bore Well

This is a small family owned company, which was started in 1992, by K. Niranjan Reddy and

K. Chitaranjan Reddy. Number of employees in this company are 23 which was increased

from 10 when started in 1992. The main customers are local bore well machine dealers for

spare parts and dealers for bore well in other states, especially in northern parts of India.

Quality of products is assured through 100% inspections and all the workers are given

training before start of their work and are motivated by giving financial rewards for good

performance. Special care is taken towards their personal problems if they arise.

Manager/proprietor is always available for talk when necessary to listen for personal

problems in addition to problems that may arise during work. This company does not have

any certification such as ISO or BSI (Indian) to state the quality of work they do or

procedures they follow. Generally the means of contact with customer is personal and by

telephone. A special marketing executive looks after customers, and always keeps in touch

with them. They will have a group discussion once in every month in the presence of all the

workers for the betterment of quality and other problems related to company. To say this

company is a very successful among circles. It has received quality award, “The Best SSI”

from Navabharath Bank in 2002.

In general, the quality problems are dealt by specifying the problem to the workers

and by motivating them to work hard to solve the specific problem. The reason for success of

the company, is attributed to quality maintenance and partly to good marketing. It was opined

that the company is reaching about 90% of their quality targets. However, there is no specific

procedure to trace these targets. The mechanical problems are usually discussed in regular

meetings, and target will be set as the breakdown time of the machine should be decreased.

The relationship between manager and workers is very important to the company. If

requested, workers are shifted to their interesting work areas when feasible. In total, there is a

friendly attitude towards workers, so that they can easily approach management to complain

about a problem or to give any suggestion for improvement. Company believes that good

relation with workers encourages them to attain company goals. In regular meetings, they

give a thought to the personal problems of workers and try to solve them, which make them

to think that as a responsible person in the company. Manager says that liberty and authority

in their own area to some extent encourages them to work hard for the company. Company is

planning to expand the product range in future.

A-37

High Vacuum Equipments Manufacturer

This is a single owned/managed company established in 1990. Total number of employees

working at this company is 13; which was increased from two when started in 1990. Main

customers of this company are government nuclear establishments. This company is also

collaborating with Pfeiffer Vacuum from Germany, which provides engineering support.

In-house training was given to every worker when recruited or when assigned to a

new work. Out of thirteen workers, two highly skilled workers do their work on four

machines. In addition, there is one-draft person, three-fitters (one very skilled), one-welder.

In general fitter and draft person will do the quality checks, the most important Helium-Leak

testing is done by the manager/owner him self.

The company has policy of giving incentives for value added work and for good

consistent quality of do day-to-day work. Company does not have any quality related

programmes, nothing more than final inspections to monitor and control quality. Even though

workers are well informed about what is expected of them regarding quality, their attitude

towards quality is not encouraging. As found, it was very difficult to convince the workers.

According to manager, workers are not tuned for quality; getting work done seems to be their

main attitude towards work. Every month a meeting takes place involving the workers to

know the problems. The response from the workers seems to be poor; company gets very few

suggestions from workers (from skilled turners and fitters) which when implemented leads to

productivity. In addition to incentives, company also follows flexible management style in

working time to convince the workers. The experience from flexible management style seems

to be not encouraging; company could not see any change in workers attitude and any

improvements regarding the quality.

According to manager, the success in reaching the quality targets is 60%; and this is

of a great concern to the organisation. The main factors that are affecting the success are lack

of facilities, low product range, problem of market acquisition. Of these, marketing is the

main problem, as the work is not mass market oriented, it is of a great dilemma for the

company whether employing marketing person will help in a decisive manner in getting

orders; it was the reason why company has not employed any marketing agent. Company has

plans to export components. To achieve this company is planning to outsource CNC

machining to produce quality products. Lack of infrastructure is the main reason why the

company was not manufacturing other products.

The work of company is divided into two parts, service and manufacturing work.

Service contributes to 60% of total work and manufacturing contributes 40%. To give a

A-38

perspective, all the work done by this company now was used to be imported twenty years

back in India. It was opined that the quality of product is on par with foreign companies.

Considering the fact company do not use latest technology and good machines the quality of

product is quiet good. When compared to German manufacturers on a given scale 1 to 10 (1

poor to 10 excellent), average quality of the company stands at 6.5 with about 20% of

products reaching the quality grade 9 on the same scale, while quality of German companies

stands at 9.5 in delivering quality products.

In spite of all problems such as, lack of technology, workers callous attitude, lack of

capital, the health of the industry is good with no competition from foreigners. As of

manager’s knowledge, German companies are best in the field but they failed to compete

with Indian organisations due to low price, which German companies’ cannot offer. When

compared with Indian products German products costs five times more. The two main

reasons for inferior quality of the products when compared to German products are

1) Lack of investment for superior quality machines

2) Lack of good quality raw material at competitive price.

In general, company is getting mostly positive feedback from customers. From 1997 onwards

in customer’s point of view, the feedback is excellent; other than for a few complaints

regarding the quality welding for a few of the products. According to manager, there could be

no solution for this unless there is a substantial investment in new equipment, which is not

possible for company. In R&D systems consulting work, customers graded this company as

very satisfactory. In general customers are satisfied with the performance of the products

despite they may not compete with aesthetic quality of the foreign products.

A-39

Potluri Engineering Industries

This company is a single owned/managed and was established in 1988. The main product of

this company is a conveyer roller. It has three major customers who are locally based and

account for 90% of business. Of the three, just one customer (manufacturer of material

handling systems) accounts for 50% of business.

Number of employees in the company is ten which saw an increase from three when

started in 1988. All workers were trained in their respective areas when recruited. However

not all of them are highly skilled. In total, company has four highly skilled, four semi skilled

and two unskilled workers. This company has a bonus system in place for motivating

employees, and yearly one-month bonus is given to every employee. Workers attitude

towards work is acceptable in doing daily work; however, they are not are not active in

giving suggestions for improvements and organisational changes which benefits both

company and employees.

Everyday owner/manager will assign work clarifying what is to be done that day. No

special meetings are conducted to deal with the planning of running the company or improve

the quality or to reduce problems or to set company goals for future. According to manager,

company is facing problems with workers. While there is a shortage of work force in the

company, management feels that the employed workers do not work punctually and

enthusiastically. It was suggested that workers usually apply for a two day leave and would

not turn up for work for two weeks. If this is the case of a highly skilled worker, management

has no other option other than to take him into work, as it would amount to lot of time and

money to train another person to same standards. In the present situation, the company cannot

afford for such a recurring expense.

It was observed that management does not track the mechanical problems and

appropriate quality tools are not used. Only random checking and 100% checking by

customers ensure quality of product. However, if customers find defects, all the parts are

replaced at the cost of company.

This company has some problems in running business, especially with respect to

working capital. The customers are satisfied but there is always a delay in payment from the

customers. In the present situation, company is facing heavy competition, due to which profit

margin decreased and forcing the company to plan to manufacture total conveyer system.

Manager believes, to stay in the business the only way to go forward is by developing total

conveyer system.

A-40

Annapurna Industries

This is a family owned company, established in 1995 with just two workers and present

number totals ten. Its main business is doing job work for local medium scale industries. It

has mainly two customers who are accounted for 95% of business. Only skilled workers were

recruited, avoiding the need to train them onsite. Company has the policy of giving one-

month incentive every year and salary increments every six months based upon performance

to motivate workers. Regarding the workers involvement and enthusiasm in solving the

problems and suggesting improvements, manager is satisfied. However, in existing scenario

only three workers are active in giving some recommendations for improvements. In the view

of manager, remaining workers are inactive and their presence merely felt. They never

suggest or talk anything about the problems of the company and does not any way contribute

to development of the company other than doing their routine work. In dealing with daily

problems, there is an easy approach; solve the problem, as they arise, no future planning.

According to manager, the quality of the work done is good with 5-10% rework and 0%

scraps. The quality performance of the goods is good which can be graded eight on a scale of

1 to 10. There is no advance planning of the work, everyday instructions are given to the

workers based up on the demands. However, customer orders are taken up to 15 days in

advance.

Customers of this company seems to be quiet satisfied, and management gets positive

feedback and assurances for further business, and often complements such as “best among the

suppliers” . Though present customers are satisfied, company was able to use only 75% of

work force. According to manager, workers want to delay the completion of work by creating

unnecessary problems, and about 90% of them try to avoid work altogether. In true sense, the

organisation has no problem of winning more orders, but the attitude of workers was denting

to take orders.

There are other problems at company’s disposal; though competitive, lack of

investment in the machinery is making difficult to compete with some companies leading to

loss of business. Therefore, the company immediate future plans were to replace the old

machines with CNC in order to serve their customers better and win critical customers in

future.

A-41

Tarun Engineering Works

This is a single owned company started in 1992 with just one worker. At present, it has in

total nine workers. Its main work is to manufacture machine parts and does maintenance

work for power packs. It has mainly two locally based customers. According to manager, the

workers of the company are inactive in giving suggestions for improvements; rarely a

suggestion comes from the workers. The reason said to be workers lack the knowledge. In

general, there are no incentives given to the workers to motivate and encourage them to work

hard other than monthly salary. In general, company has no plans or initiatives to improve

quality. Work planning is done as the workday begins in the morning and workers are

assigned their work in the process.

Satisfaction level of customers is about 7.5 on a scale of 1 to 10. According to the

manager, there is heavy competition in the business, and company is performing not par with

the competitors and fear of loosing business. When compared with the competitors the

satisfaction regarding the quality is average. For future, company is planning to upgrade

technology by replacing the old machines with new ones to stay in business.

A-42

Summary

Organizations participated in the study are having total number of employees from four to 23,

which are manufacturing oriented. All the studied organizations have a small customer base,

which does not exceed six in number; however, majority of the business is done with only 2

to 3 customers, who are locally based medium sized industries. These organizations produce

parts that require not more than 4 to 5 operations. The quality of the product is assured

through 100% inspection; however, there is no special planning for quality or quality

improvement activities. It is common to see; neither workers nor owners to have any

technical background. In the present study, people who have technical education such as

engineering own only two out of seven organizations; remaining organizations are owned by

people who have working experience in similar field. Except a single company, none of them

is technical oriented. In general, workers with experience are preferred for employment.

However, some of companies provide initial training to workers in specific operations they

have to do in their job.

Worker incentives or motivational activities are not common among organizations,

but performance based appreciation has been observed in some organizations. Giving

incentives to workers will not be a problem for companies because organizations have a

single owner. Overall, it has been reported that workers are not enthusiastic in improving the

quality. In general, there is a strong negative feeling regarding workers attitude, some owners

think workers try to avoid doing work, even they suggest incentives does not work to

motivate employees. Apart from two organizations, none had positive experience with

workers. Only one organization has a method of problem solving and nonetheless, there is no

documentation or logbooks to make a case history. In the process, targets such as “reduce

machine breakdowns”, “reduce rejections” are set and reviewed that after specific period, the

reviews are also based just on workers remembrance of problem occurrence, because there is

no recorded data to verify improvements.

Repetitive orders are the yardstick for organizations to know about customer

satisfaction and decide on changes or improvements to the product. Organizations do receive

customer feedback, to provide suggestions or give compliments for products/services they

provide; normally this is done through phone calls. Common channel to receive customer

orders are is on phone because most of companies do not have marketing person; however, it

makes sense to deal with customers on phone as they have very few customers. In the present

scenario, most of the organizations are facing heavy competition; and are concerned about

future, because of constant decrease in price due to competition. As a result, none of the

A-43

organizations has any major changes or plans that they will undertake other than technology

up gradation plans to face the competition.

Conclusion

The case study on SSIs in Indian organisations has highlighted some basic problems. It is

understood companies are knowledgeable about their work; however, unable to expand their

knowledge due to lack of training of managerial people and their educational background.

Other factors that are affecting the success of SSIs are lack of facilities, low product range;

problem of market acquisition and more so, marketing seems to be the main problem for

many organizations. Study shows management activities are not relevant to pursue

improvements. Other problems such as quality of raw materials, lack of investment in the

machinery are also hindering the quality of products. However, human resource problem is

one of the main issues in SSIs, particularly in areas such as in-house training, providing

incentives and maintaining good relationships with workers.

Though there are many teething problems to deal with, most organizations are

running in profits. However, they see a decrease in profit margin from past 5 to 6 years, and

unable to get new customers to sustain profit. Thus, existence of these organizations in near

future can be questioned if they do not act in organized manner as done by “Mining Products

Company” in pursuing improvement activities. Moreover, it is impossible for companies to

make improvements unless the management is knowledgeable enough and trained to do so

which is not the case in present companies participated in the study.

This study enabled to serve the objective of improving the understanding of practices,

problems in SSIs. This study has presented the problems and management issues in SSIs;

however, this will not able to give complete picture of practices of all SSIs but definitely

throws light on practices of engineering based SSIs, which are local oriented. Further

qualitative studies with larger sample are necessary to conform these findings.

A-44

References

[1] Articles at website: http://www.smallindustryindia.com/

[2] Handbook of Industrial Policy and Statistics 2003-2005,

http://eaindustry.nic.in/new_handout.htm

[3] National Strategy for Manufacturing:

http://nmcc.nic.in/publications/strategy_paper_0306.pdf

[4] Dr. Syed Vazith Hussain (2003), Small-Scale Industries in New Millennium

[5] http://indiaonestop.com/sickunits.htm

A-45

Appendix 3

Determination of Critical Activities from Combined Analysis of

Survey1 & Survey 2

Analysis Appendix 3

A-46

Introduction

This part of the report is used to identify critical activities that have to be considered for

developing the model [chapter: 6.4]. Author will present the effectiveness of all activities

necessary to identify those activities, which are not being pursued by Indian organizations as

required per ISO 9001: 2000 requirements. The effective realization of activities is

determined by data collected from Survey 1[Appendix: 1] and Survey 2 (data collected from

organizations with established QMS in Hyderabad-India)

Calculation of effective realization of activities:

1. For each response with strongly agree (or) completely satisfied: activity it is

considered as 100% realized

2. For each response with agree or somewhat satisfied: Activity is considered as

50% realized.

3. Total effective realization: Weighted realization of Survey 1 + Weighted

realization of Survey 2

4. Weighted realization of Survey 1 = Realization of Survey1 x (Number of

responses for Survey 1/Total number of Responses)

5. Weighted realization of Survey 2= Realization of Survey2 x (Number of

responses for Survey 2/Total number of Responses)

Margin selected for final analysis is 60%, all the activities which are being performed 60% or

below 60% are considered as critical activities.

Table A3.1 Internal reliability measurement of combined data from Survey 1 and Survey 2

Q 1-4, Quality Management System Cronbach's Alpha = 0,759892

Q 5-12, Management Responsibility Cronbach's Alpha = 0,853974

Q 13-16, Customer Focus Cronbach's Alpha = 0,819204

Q 17-20, Quality Policy Cronbach's Alpha = 0,786446

Q 21-23, Quality Planning Cronbach's Alpha = 0,782428

Q 24-27, Responsibility Authority &

Communication Cronbach's Alpha = 0,802528

Q 28-33 Resource Management Cronbach's Alpha = 0,892317

Q 34-40, Product Realization Cronbach's Alpha = 0,861689

Q 41-44, Supplier Focus Cronbach's Alpha = 0,801474

Q 45-51, Measurement, Analysis &

improvement Cronbach's Alpha = 0,818057

Analysis Appendix 3

A-47

Items Survey 2

N

Survey 1

N

Critical

Value

Adjusted

Critical Value

1 21 30 0,164 0,1002

2 21 29 0,0987 0,0642

3 21 29 0,6798 0,6371

Quality Management

System

4 21 29 0,4915 0,4187

5 20 30 0,2158 0,1654

6 21 29 0,2668 0,2152

7 21 30 0,3633 0,3332

8 20 30 0,0655 0,0406

9 21 30 0,2969 0,2491

10 20 29 0,0656 0,0394

11 20 30 0,0814 0,0543

Management

Commitment

12 21 30 0,5530 0,5090

13 21 29 0,6726 0,6392

14 21 29 0,2156 0,1708

15 20 30 0,4399 0,3959 Customer Focus

16 21 28 0,4367 0,4036

17 20 30 0,1718 0,1302

18 21 29 0,1158 0,0735

19 21 30 0,3483 0,3057 Quality Policy

20 19 30 0,6665 0,6443

21 20 30 0,5658 0,5214

22 20 29 0,4578 0,4107 Quality Planning

23 20 30 0,9211 0,9106

24 20 30 0,4759 0,4267

25 20 29 0,2765 0,2361

26 19 30 0,9509 0,9466

Responsibility, Authority

& Communication

27 19 30 0,9509 0,9460

28 19 29 0,4479 0,3703

29 19 29 0,5409 0,5050

30 19 30 0,9509 0,9459

31 19 30 0,1961 0,1674

32 19 30 0,1342 0,0995

Resource Management

33 19 30 0,4601 0,4194

34 19 30 0,0986 0,0662

35 19 28 0,5439 0,5052

36 19 30 0,5048 0,4557

37 19 30 0,7195 0,6911

38 19 29 0,4999 0,4556

39 19 29 0,0698 0,0496

Product Realization

40 19 29 0,0222 0,0128

41 19 29 0,8993 0,8913

42 19 29 0,2684 0,2313

43 19 30 0,6443 0,6147 Purchasing

44 19 29 0,3591 0,3335

45 19 29 0,2420 0,2047

46 19 29 0,4735 0,4246

47 19 27 0,1210 0,0844

48 19 29 0,6504 0,6211

49 19 29 0,9664 0,9642

50 19 29 0,1187 0,0894

Measurement, Analysis

& Improvement

51 19 30 0,3452 0,2790

Table 2: Mann-Whitney Test for Survey 1 and Survey 2

Analysis Appendix 3

A-48

Table A.3 Mean values of data from Survey 1 and Survey 2

Items

Mean-

Survey 1 Survey 2

Mean

Difference Combined Mean

1 4,63 4,43 0,20 4,55

2 4,52 4,14 0,38 4,33

3 4,48 4,38 0,10 4,41

Quality Management

System

4 4,52 4,38 0,14 4,43

5 4,47 4,25 0,22 4,35

6 4,48 4,24 0,24 4,35

7 4,00 4,19 -0,19 4,08

8 4,30 3,85 0,45 4,10

9 4,40 4,05 0,35 4,25

10 4,48 4,10 0,38 4,27

11 4,33 3,82 0,51 4,16

Management

Commitment

12 4,30 4,48 -0,18 4,37

13 4,24 4,05 0,19 4,14

14 4,24 4,05 0,19 4,33

15 4,27 4,00 0,27 4,14 Customer Focus

16 4,07 3,86 0,21 3,94

17 4,43 4,06 0,37 4,29

18 4,59 4,24 0,35 4,41

19 4,37 4,05 0,32 4,24 Quality Policy

20 4,13 4,29 -0,16 4,22

21 4,07 4,00 0,07 4,00

22 4,38 4,30 0,08 4,31 Quality Planning

23 4,13 4,05 0,08 4,16

24 4,30 4,15 0,15 4,24

25 4,21 4,00 0,21 4,10

26 4,13 4,21 -0,08 4,18

Responsibility,

Authority &

Communication 27 4,07 3,89 0,18 3,98

28 3,97 4,21 -0,24 4,06

29 4,28 4,05 0,23 4,20

30 4,20 4,21 -0,01 4,22

31 3,83 4,16 -0,33 3,98

32 3,80 4,16 -0,36 3,96

Resource Management

33 4,00 4,16 -0,16 4,10

34 4,47 4,21 0,26 4,37

35 4,32 4,21 0,11 4,22

36 4,37 4,21 0,16 4,29

37 4,27 4,16 0,11 4,22

38 4,38 4,32 0,06 4,35

39 4,38 3,84 0,54 4,18

Product Realization

40 4,38 3,63 0,75 4,08

41 4,17 4,00 0,17 4,10

42 4,28 3,84 0,44 4,18

43 4,27 4,05 0,22 4,18 Purchasing

44 3,97 3,53 0,44 3,82

45 4,34 4,11 0,23 4,24

46 4,41 4,26 0,15 4,33

47 4,41 4,00 0,41 4,18

48 4,24 4,05 0,19 4,22

49 4,07 4,11 -0,04 4,08

50 3,69 4,11 -0,42 3,84

Measurement, Analysis

& Improvement

51 3,80 4,05 -0,25 3,88

Analysis Appendix 3

A-49

Table 4: Realization of Quality management activities

Q,No Statement Sample

1

Sample

2

Wtd.

Mean

Quality Management System

1 Organizations established and maintaining a quality

manual with strong control of documentation at all levels

83,33 71,40 78,34

2 Quality policy and quality objectives are documented in

quality manual 79,3 61,91 72,43

3

Documentation control systems are in place to track

revision levels of all specifications, drawings, forms and

other documents

75,86 73,81 75,01

4 Internal audits are performed on the quality system 79,31 71,42 76,15

79,85 69,63 76,01

Management Commitment

5 Senior management establishes quality policy and quality

objectives and communicates to organization

76,66 65 72

6 Senior management ensures the availability of resources

to achieve objectives 75,86 64,29 71,38

7 Regular review of suitability of quality policies and

objectives takes place 53,33 64,29 57,98

8

Senior executives clearly articulate the organization’s

values relevant to quality and continuous quality

improvement

68,33 47,5 60

9

Behavior of the senior executives is consistent with

values relevant to quality and continuous quality

improvement

71,66 57,15 65,86

10

Senior executives have demonstrated an ability to

manage the changes (e,g,, organizational, technological)

needed to improve the quality and services

74,13 55 66,48

11 Senior executives act on suggestions to improve the

quality and services 70 52,5 63

12 Senior executives generate confidence that efforts to

improve quality will succeed 68,33 73,81 70,52

69,7 59,94 65,46

Customer Focus 13 The organization does a good job of assessing current

customer needs and expectations’’

63,7 59,52 62,02

14 Customer complaints are studied to identify patterns and

prevent the same problems from recurring 74,13 59,53 68,29

15 Organization uses data from customers to improve

services 63,33 57,5 61

16 Organization uses data on customer expectations and/or

satisfaction when designing new services and products 55,3 47,62 52,23

64,11 56,04 60,98

Analysis Appendix 3

A-50

Quality Policy 17

Present Quality policy is appropriate to the organization 75 60 69

18 Quality policy commits to the continual improvement 81 64,29 74,89

19 Quality Policy is communicated and well understood

with in the organization 70 59,53 65,81

20 Quality Policy is reviewed periodically for continuing

suitability 61,66 57,86 60,14

71,91 60,42 65,59

Planning 21 Measurable quality objectives are established for all

functions and levels within the organization

58,33 52,5 56

22 Quality manual and procedures for key activities are

documented 72 65 69,2

23 Resources and activities needed to achieve Quality

Objectives are identified and allocated 58,5 60 59,1

62,94 59,16 61,00

Responsibility, Authority &

Communication 24

Responsibilities and authorities are clearly defined and

communicated within the organization

66,6 60 63,96

25

Key personal (management) responsible for

establishment, implementation and maintenance of

quality management system is appointed,

62 60,00 61,2

26 Awareness of customer requirements throughout the

organization 60 60,5 60,2

27 A very good communication process is established in

organization for effective QMS 55 55,2 55,08

60,9 58,92 59,36

Resource Management

28 Sufficient resources are allocated for implementing,

maintaining and improving quality management system

51,7 60,5 55,20

29 Organization provides and maintains the infrastructure

needed to achieve conformity to product requirements 67,2 57,8 63,44

30 Resources are provided to establish and control working

conditions needed to assure product/service quality 67,2 63,1 65,56

31 Staff is given education and training in how to identify

and act on quality improvement opportunities, 46,5 63,1 53,14

32

Staff is given education and training in statistical and

other quantitative methods that support quality

improvement

48,3 65,7 55,26

33 Staff are given the needed education and training to

improve job skills and performance 53,3 60,52 56,19

55,7 61,78 57,94

Product Realization

34 Quality objectives and requirements of the product are

clearly defined

76,5 60,52 70,11

Analysis Appendix 3

A-51

35 From the customer is clear and specific (regarding

requirements of product), 66,07 60,52 63,85

36 Product specific processes are clearly established and

documented, 68,33 63,15 66,05

37 Reviews are done to ensure that organization has the

capability to provide requested product or service 63,33 60,52 62,05

38 Records are kept to provide evidence that the process and

resulting product meet requirements 70,6 65,7 68,64

39

There is effective customer communication for providing

product information, handling enquiries, orders and

customer feedback (along with complaints)”,

68,9 50 61,34

40

Organization as efficient approach to identify the product

status by suitable means throughout product realization

process

68,9 44,73 59,23

68,94 57,88 64,52

Purchasing

41 Organization has established and documented the criteria

for evaluation and selection of suppliers that provide

materials and services

59 57,89 58,56

42 Organization works closely with suppliers to improve the

quality of their products and services 67,2 55,26 62,42

43 Organization has defined system for monitoring

supplier’s performance 65 60,52 63,21

44

Organization involves suppliers for developing a new

product/service 53,44 44,73 49,96

61,16 54,6 58,54

Measurement, Analysis & Improvement

45 Customer satisfaction is monitored regularly, to know

organization actually meet customer expectations

67,2 55,2 62,4

46 Product conformity is measured and monitored to ensure

that organization actually meet all requirements 70,68 63,15 67,67

47

Organization has system in place to take action to

eliminate the cause of nonconformities in order to

prevent reoccurrence

70,37 52,63 63,27

48

Organization has system in place to eliminate the causes

of potential nonconformities in order to prevent

occurrence

63,7 60,52 62,43

49

Organization promotes the use of statistical tools to

monitor and measure product and processes for

effectiveness and/or improvement

56,89 60,52 58,34

50

Organisation collects and analyses appropriate data to

demonstrate the suitability and effectiveness of the QMS

and to evaluate where continual improvement of the

effectiveness of the QMS can be made

41,37 60,52 49,03

51

Organization has effective system to ensure that product

which doesn’t conform to product requirements is

identified and controlled to prevent its unintended use or

delivery

43,33 52,63 47,05

Analysis Appendix 3

A-52

59,07 57,88 58,06

Quality Results & Satisfaction with Results

1 The organization has done a good job of simplifying

how products and services are provided. 56,5 54,7 55,85

2

Over the past few years, the organization has shown

steady, measurable improvements in the quality of

products & services

65,5 54,7 61,59

3

Over the past few years, the organization has shown

steady, measurable cost reduction while maintaining

or improving quality

61,5 52,5 58,24

61,17 53,97 58,56

4 How satisfied are you with the results of your

organization's efforts to improve quality? 57,3 64,7 59,98

5 Board understanding of quality? 70 67,6 69,13

6 Degree of Board commitment to continuous

improvement of quality? 72 59,6 67,51

7 Quality of training provided 54 62,8 57,19

8 Ability to communicate the quality across the

organization 62,6 55,2 59,92

9 Level of employee participation in giving suggestions

for improvement of quality? 59,3 52,3 56,77

10 Effective utilization of resources? 62,6 60 61,66

11

Overall performance considering long-term growth

prospects, customer satisfaction, employee

satisfaction and profitability

59,6 65,7 61,81

62,18 60,99 61,75

12 Improving customer satisfaction 75,3 64,7 71,46

13 Improving productivity/efficiency 77,3 63,8 72,41

14 Improving continuity of Quality 74 61 69,29

15 Having opportunities to use your skills and abilities

better 74 59,04 68,58

16 Getting recognition (i,e,, praise, promotion, etc,) from

your superiors 70 60,9 66,71

17 Feeling that you have accomplished something

worthwhile 72,6 54,2 65,94

18 Making changes that improve the processes of

customer satisfaction 74 55,2 67,19

19 Spreading process changes to other parts of the

organization, 66,66 59,04 63,90

20 Gaining support for process changes, 66 62,8 64,84

21 Motivated to see the company succeeds, 72 61 68,02

22 Exciting work environment, 69,3 63,1 67,06

71,71 60,07 67,49

Analysis Appendix 3

A-53

Figure A. 27 Realization of quality management activities

Comparison of results from survey1 and survey 2 indicates the overall performance trend of

different aspects of quality management system according to ISO 90001: 2000 requirements

is same. However, graph (Figure A. 27) clearly depicts results from survey 1 with sample

from organizations with collaborations with German organizations are positively positioned

compared to results from survey 2 the sample representing common Indian organizations that

are certified. Performance of activities related to establishing QMS has been positive in both

samples. However, management commitment, customer focus, quality policy, planning,

resource management, product realization, purchasing, measurement analysis and

improvement related activities performance is below performance limit line for the survey 2,

whereas in the survey 1 only resource management activities, measurement analysis and

improvement related activities are performed below limit line. Altogether combined curve of

survey 1 and survey 2 indicates customer focus, planning, resource management, product

realization, purchasing and measurement analysis and improvement are the areas needed

attention in Indian organization. However, not all the activities in these aspects are performed

at the same level. This makes it mandatory to identify critical activities that needed to be

addressed for overall effectiveness of QMS. Thus, identified activities as listed in Table: A.5

gives opportunity to improve upon existing level of practices as found in Indian

organizations.

Analysis Appendix 3

A-54

Table A.5 gives out the list of critical activities that are not being realized by organizations,

which are having established QMS. These activities are considered to be critical as majority

of organizations are pursuing QMS according ISO 9001: 2000 and unable to realize these

activities, which are meant to be, followed according to ISO 9001:2000 requirements for

realization of true benefits from the standard.

7 Regular review of suitability of quality policies and objectives

takes place 53,33 64,29 57,98

8 Senior executives clearly articulate the organization’s values

relevant to quality and continuous quality improvement 68,33 47,5 60

16 Organization uses data on customer expectations and/or

satisfaction when designing new services and products 55,3 47,62 52,23

20 Quality Policy is reviewed periodically for continuing suitability 61,66 57,86 60,14

26 Awareness of customer requirements throughout the

organization 60 60,5 60,2

27 A very good communication process is established in

organization for effective QMS 55 55,2 55,08

28 Sufficient resources are allocated for implementing, maintaining

and improving quality management system 51,7 60,5 55,20

31 Staff is given education and training in how to identify and act

on quality improvement opportunities, 46,5 63,1 53,14

32 Staff is given education and training in statistical and other

quantitative methods that support quality improvement 48,3 65,7 55,26

33 Staff are given the needed education and training to improve job

skills and performance 53,3 60,52 56,19

40 Organization as efficient approach to identify the product status

by suitable means throughout product realization process 68,9 44,73 59,23

41

Organization has established and documented the criteria for

evaluation and selection of suppliers that provide materials and

services

59 57,89 58,56

44

Organization involves suppliers for developing a new

product/service 53,44 44,73 49,96

49

Organization promotes the use of statistical tools to monitor and

measure product and processes for effectiveness and/or

improvement

56,89 60,52 58,34

50

Organisation collects and analyses appropriate data to

demonstrate the suitability and effectiveness of the QMS and to

evaluate where continual improvement of the effectiveness of

the QMS can be made

41,37 60,52 49,03

51

Organization has effective system to ensure that product which

doesn’t conform to product requirements is identified and

controlled to prevent its unintended use or delivery

43,33 52,63 47,05

Table A.5: list of critical activities at cutoff point 60

Survey

1

Survey

2

Wted

Mean

Questionnaire Appendix 4

A-55

Appendix 4

Survey Questionnaire


A-56

Thank you for considering to participate in this research survey!Thank you for considering to participate in this research survey!Thank you for considering to participate in this research survey!Thank you for considering to participate in this research survey!

Notes:

In responding to questions that ask you to make a global judgment about the “organization,”

please respond based upon your knowledge and experience of the department or area in

which you are currently employed, the other departments or areas you come in contact within

the course of doing your job, and the information you have on the organization as a whole.

Filling out the Questionnaire:

• In filling out the questionnaire (selecting the one of the five 1, 2, 3, 4, 5 options) you

just have to indicate appropriate answer in the survey answer sheet, for the

appropriate question.

Sending the Questionnaire:

Please return only the filled out survey answer sheet (do not send the complete

questionnaire) using the reply cover provided to you.

A. THE ORGANIZATION AS A WHOLE

These questions relate to the type of organization. None of these descriptions is any better

than the others; they are just different. For example: In question 1, if Organization A seems very similar to mine, B seems somewhat

similar, and C and D do not seem similar at all then your answer will be A or A,B and if C

seems very similar and A seems somewhat similar you could state C or C,A

1. Organization Character A. Organization is a very personal place. It is a lot like an extended family. People seem to

share a lot of them selves.

B. Organization is a very dynamic and entrepreneurial place. People are willing to stick their

necks out and take risks.

C. Organization is a very formalized and structured place. Bureaucratic procedures generally

govern what people do.

D. Organization is very production oriented. A major concern is with getting the job done.

People aren’t very personally involved.

My Company is

TECHNICAL UNIVERSITY OF BERLIN

Chair for Quality Science


A-57

2. Organization’s Managers A. Managers are warm and caring. They seek to develop employees’ full potential and act as

their mentors or guides.

B. Managers are risk-takers. They encourage employees to take risks and be innovative.

C. Managers are rule-enforcers. They expect employees to follow established rules, policies,

and procedures.

D. Managers are coordinators and coaches. They help employees meet the organization’s

goals and objectives.

My Company is

3. Organization Cohesion A. The glue that holds together is loyalty and tradition. Commitment to this organization runs

high.

B. The glue that holds together is commitment to innovation and development. There is an

emphasis on being first.

C. The glue that holds together is formal rules and policies. Maintaining a smooth running

operation is important here.

D The glue that holds together is the emphasis on tasks and goal accomplishment. A

production orientation is commonly shared.

My Company is

4. Organization Emphases A. Emphasizes human resources. High cohesion and morale in the organization are

Important.

B. Emphasizes growth and acquiring new resources. Readiness to meet new challenges is

important.

C. Emphasizes permanence and stability. Efficient, smooth operations are important.

D. Emphasizes competitive actions and achievement. Measurable goals are important.

My Company is

5. Organization Rewards A. Distributes its rewards fairly equally among its members. It’s important that everyone

from top to bottom be treated as equally as possible.

B. Distributes its rewards based on individual initiative. Those with innovative ideas and

actions are most rewarded.

C. Distributes its rewards based on rank. The higher you are, the more you get.

D. Distributes its rewards based on the achievement of objectives. Individuals who provide

leadership and contribute to attaining the organization’s goals are rewarded.

My Organisation is

B. GENERAL INFORMATION ABOUT THE ORGANIZATION

Please indicate the extent to which each of the following applies to your organization’s

quality improvement efforts.

INSTRUCTIONS In this section you are asked to assess your organization’s efforts to improve the quality of

products and services it provides. Please read each statement carefully. Indicate the extent to

which you agree or disagree that the statement characterizes your organization by circling the

appropriate response (1 = Strongly Disagree, 5 = Strongly Agree). In answering the


A-58

questions, you should think about what the organization is actually like now, not how you

think it might be in the future or how you might wish it to be.

Strongly

Disagree Disagree

Neither Agree

Nor Disagree Agree Strongly Agree

Don’t

Know

1 2 3 4 5 0

1. A philosophy (Quality Policy) of continuous improvement of quality through

improvement of organizational processes.

1 2 3 4 5 0

2. An explicit focus on “customers” – both external and internal.

1 2 3 4 5 0

3. Empowering employees to identify quality problems and improvement opportunities

and to take action on these problems and opportunities.

1 2 3 4 5 0

4. Use of quality improvement teams including employees from multiple departments

and from different organizational levels as the major mechanism for introducing

improvements in organizational processes.

1 2 3 4 5 0

5. Does your organization have measurable goals related to customer satisfaction?

Yes │ NO

6. Have your workers a say in how the company is run?

Yes │ NO

7. Do you consider your organization to be formally involved in Continuous Quality

Improvement/Total Quality Management (CQI/TQM) efforts?

Yes │ No if other please specify

8. What certification does your company posses?

9. Have you received any Quality excellence awards?

Yes │ No if yes what

C. QUALITY SYSTEM REQUIREMENTS

In responding to questions that ask you to make a global judgment about the “organization,”

please respond based upon your knowledge and experience of the department or area in

which you are currently employed, the other departments or areas you come in contact within

the course of doing your job, and the information you have on the organization as a whole.


A-59

INSTRUCTIONS

In this section you are asked to assess your organization’s efforts to improve the quality of

products and services it provides. Please read each statement carefully. Indicate the extent to

which you agree or disagree that the statement characterizes your organization by circling the

appropriate response (1 = Strongly Disagree, 5 = Strongly Agree). In answering the

questions, you should think about what the organization is actually like now, not how you

think it might be in the future or how you might wish it to be.

Strongly

Disagree Disagree

Neither Agree

Nor Disagree Agree Strongly Agree

Don’t

Know

1 2 3 4 5 0

1. Quality Management System 1. The organisation established and maintains a quality manual.

1 2 3 4 5 0

2. Quality policy and quality objectives are documented in quality manual.

1 2 3 4 5 0

3. Documentation control systems are in place to track revision levels of all

specifications, drawings, forms and other documents.

1 2 3 4 5 0

4. Internal audits are performed on the quality system.

1 2 3 4 5 0

2. Management Responsibility

Management Commitment

5. Senior management establishes quality policy and quality objectives and

communicates to organisation

1 2 3 4 5 0

6. Senior management ensures the availability of resources to achieve objectives

1 2 3 4 5 0

7. Regular review of suitability of quality policies and objectives takes place.

1 2 3 4 5 0

8. The senior executives clearly articulate the organization’s values relevant to quality

and continuous quality improvement.

1 2 3 4 5 0

9. The behaviour of the senior executives is consistent with values relevant to quality

and continuous quality improvement.

1 2 3 4 5 0


A-60

10. The senior executives have demonstrated an ability to manage the changes (e.g.,

organizational, technological) needed to improve the quality and services.

1 2 3 4 5 0

11. The senior executives act on suggestions to improve the quality and services.

1 2 3 4 5 0

12. The senior executives generate confidence that efforts to improve quality will

succeed.

1 2 3 4 5 0

Customer Satisfaction

13. The organization does a good job of assessing current customer needs and

expectations.

1 2 3 4 5 0

14. Customer’ complaints are studied to identify patterns and prevent the same problems

from recurring.

1 2 3 4 5 0

15. The organization uses data from customers to improve services.

1 2 3 4 5 0

16. The organization uses data on customer expectations and/or satisfaction when

designing new services and products.

1 2 3 4 5 0

Quality Policy

17. Quality policy is appropriate to the organisation.

1 2 3 4 5 0

18. Quality policy commits to the continual improvement

1 2 3 4 5 0

19. It is communicated and understood with in the organisation.

1 2 3 4 5 0

20. Reviewed periodically for continuing suitability.

1 2 3 4 5 0

Planning

21. Measurable quality objectives are established for all functions and levels within the

organisation.

1 2 3 4 5 0

22. Quality manual and procedures for key activities are documented


A-61

1 2 3 4 5 0

23. Resources and activities needed to achieve Quality Objectives are identified and

allocated.

1 2 3 4 5 0

Responsibility, Authority and communication

24. Responsibilities and authorities are clearly defined and communicated within the

organisation

1 2 3 4 5 0

25. Appointment of key personal (management) responsible for establishment,

implementation and maintenance of quality management system.

1 2 3 4 5 0

26. Awareness of customer requirements throughout the organisation.

1 2 3 4 5 0

27. Avery good communication process is established in organisation for effective QMS

and for clear and effective ways for people within the organisation to communicate.

1 2 3 4 5 0

3. Resource Management

28. Sufficient resources are allocated for implementing, maintaining and improving

quality management system.

1 2 3 4 5 0

29. Organisation provides and maintains the infrastructure needed to achieve conformity

to product requirements.

1 2 3 4 5 0

30. Resources are provided to establish and control working conditions needed to assure

product/service quality

1 2 3 4 5 0

31. Staff are given education and training in how to identify and act on quality

improvement opportunities.

1 2 3 4 5 0

32. Staff are given education and training in statistical and other quantitative methods that

support quality improvement.

1 2 3 4 5 0

33. Staff are given the needed education and training to improve job skills and

performance.

1 2 3 4 5 0


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4. Product Realization

34. Quality objectives and requirements of the product are clearly defined.

1 2 3 4 5 0

35. Information from the customer is clear and specific (regarding requirements of

product).

1 2 3 4 5 0

36. Product specific processes are clearly established and documented.

1 2 3 4 5 0

37. Reviews are done to ensure that organisation has the capability to provide requested

product or service.

1 2 3 4 5 0

38. Records are kept to provide evidence that the process and resulting product meet

requirements.

1 2 3 4 5 0

39. There is effective customer communication for providing product information,

handling enquiries, orders and customer feed back (along with complaints).

1 2 3 4 5 0

40. Organisation as efficient approach to identify the product status by suitable means

throughout product realisation process.

1 2 3 4 5 0

Purchasing

41. Organisation as established and documented the criteria for evaluation and selection

of suppliers that provide materials and services.

1 2 3 4 5 0

42. The organization works closely with suppliers to improve the quality of their products

and services.

1 2 3 4 5 0

43. Organisation has defined system for monitoring supplier’s performance.

1 2 3 4 5 0

44. Organisation involves suppliers for developing a new product/service.

1 2 3 4 5 0

5. Measurement Analysis and Improvement

45. Customer satisfaction is monitored regularly, to know organisation actually meet

customer expectations.

1 2 3 4 5 0


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46. Product conformity is measured and monitored to ensure that organisation actually

meet all requirements.

1 2 3 4 5 0

47. Organisation has effective system to ensure that product which doesn’t conform to

product requirements is identified and controlled to prevent its unintended use or

delivery.

1 2 3 4 5 0

48. Organisation has system in place to take action to eliminate the cause of

nonconformities in order to prevent reoccurrence.

1 2 3 4 5 0

49. Organisation has system in place to eliminate the causes of potential nonconformities

in order to prevent occurrence.

1 2 3 4 5 0

50. Organisation promotes the use of statistical tools to monitor and measure product and

processes for effectiveness and/or improvement.

1 2 3 4 5 0

51. Organisation collects and analyse appropriate data to demonstrate the suitability and

effectiveness of the QMS and to evaluate where continual improvement of the

effectiveness of the QMS can be made.

1 2 3 4 5 0

D. QUALITY RESULTS

1. The organization has done a good job of simplifying how products and services are

provided.

1 2 3 4 5 0

2. Over the past few years, the organization has shown steady, measurable

improvements in the quality of products & services

1 2 3 4 5 0

3. Over the past few years, the organization has shown steady, measurable cost reduction

while maintaining or improving quality.

1 2 3 4 5 0

E. SATISFACTION WITH QUALITY IMPROVEMENT RESULTS

Not at all Satisfied Some What Satisfied Completely

Satisfied

1 2 3 4 5 6


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1. To date, how satisfied are you with the results of your organization's efforts to improve

quality?

1 2 3 4 5 6

2. How satisfied are you with each of the following aspects of your organization's efforts to

improve quality:

a) Board understanding of quality?

1 2 3 4 5 6

b) Degree of Board commitment to continuous improvement of quality?

1 2 3 4 5 6

c) Quality of training provided?

1 2 3 4 5 6

d) Ability to communicate the quality across the organisation?

1 2 3 4 5 6

e) Level of employee participation in giving suggestions for improvement of quality?

1 2 3 4 5 6

f) Effective utilization of resources?

1 2 3 4 5 6

g) Overall performance considering long-term growth prospects, customer

satisfaction, employee satisfaction and profitability

1 2 3 4 5 6

F. Employee Satisfaction/ Work Environment

1. Improving customer satisfaction

1 2 3 4 5 6

2. Improving productivity/efficiency.

1 2 3 4 5 6

3. Improving continuity of Quality.

1 2 3 4 5 6

4. Having opportunities to use your skills and abilities better.

1 2 3 4 5 6

5. Getting recognition (i.e., praise, promotion, etc.) from your superiors.

1 2 3 4 5 6

6. Feeling that you have accomplished something worthwhile.

1 2 3 4 5 6


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7. Making changes that improve the processes of customer satisfaction.

1 2 3 4 5 6

8. Spreading process changes to other parts of the organization.

1 2 3 4 5 6

9. Gaining support for process changes.

1 2 3 4 5 6

10. Motivated to see the company succeed.

1 2 3 4 5 6

11. Exciting work environment.

1 2 3 4 5 6

12. Freedom in position to take independent action when needed.

1 2 3 4 5 6

G. Recent Major Organizational Changes

1. Has your organization undergone a merger or acquisition within the last 5 years?

Yes │ No

a. If YES, what was the effect of this merger on the quality at your organisation?

(Please describe)

b. If YES, what was the effect of this merger on staff? (Please describe)

2. What changes you could see in your company in next 5 years?

F) Working with developing countries

Yes │No

1. How many countries you are working with?

2. How many countries you are working with in developing countries?

a) Have you plant in India or collaboration with Indian companies?

Yes │ No

3. With what expectations you went to do business with developing countries?

4. Have your expectations fulfilled in doing business with developing countries?

Yes │ No If yes by how much

5. Generally what do you offer in doing business with other developing countries?

Thank You for Completing This Survey. Please Return the filled out answer sheet using the reply cover provided to you.


A-66

Survey Answer Sheet

Please fill the answers (Yes/No or 1,2….etc or A,B,C…) of the questions in their

corresponding boxes.

Q.No Answer Q.No Answer

A. THE ORGANIZATION AS A WHOLE

1 5

2 4

3

B. GENERAL INFORMATION ABOUT THE ORGANIZATION

1 1 2 3 4 5 0 6 Yes No

2 1 2 3 4 5 0 7 Yes No

3 1 2 3 4 5 0 8

4 1 2 3 4 5 0 9 Yes No

5 Yes No

C. QUALITY SYSTEM REQUIREMENTS

1 1 2 3 4 5 0 19 1 2 3 4 5 0

2 1 2 3 4 5 0 20 1 2 3 4 5 0

3 1 2 3 4 5 0 21 1 2 3 4 5 0

4 1 2 3 4 5 0 22 1 2 3 4 5 0

5 1 2 3 4 5 0 23 1 2 3 4 5 0

6 1 2 3 4 5 0 24 1 2 3 4 5 0

7 1 2 3 4 5 0 25 1 2 3 4 5 0

8 1 2 3 4 5 0 26 1 2 3 4 5 0

9 1 2 3 4 5 0 27 1 2 3 4 5 0

10 1 2 3 4 5 0 28 1 2 3 4 5 0

11 1 2 3 4 5 0 29 1 2 3 4 5 0

Title Prof Dr Mr Ms

Name

Position

Organisation /

Company

Global

No. of Employees

Address

Country

e-mail

Telephone

Fax

Website

Do you want the Report Yes │ No

Would you like to be

contacted in future Yes │ No


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12 1 2 3 4 5 0 30 1 2 3 4 5 0

13 1 2 3 4 5 0 31 1 2 3 4 5 0

14 1 2 3 4 5 0 32 1 2 3 4 5 0

15 1 2 3 4 5 0 33 1 2 3 4 5 0

16 1 2 3 4 5 0 34 1 2 3 4 5 0

17 1 2 3 4 5 0 35 1 2 3 4 5 0

18 1 2 3 4 5 0 36 1 2 3 4 5 0

37 1 2 3 4 5 0 45 1 2 3 4 5 0

38 1 2 3 4 5 0 46 1 2 3 4 5 0

39 1 2 3 4 5 0 47 1 2 3 4 5 0

40 1 2 3 4 5 0 48 1 2 3 4 5 0

41 1 2 3 4 5 0 49 1 2 3 4 5 0

42 1 2 3 4 5 0 50 1 2 3 4 5 0

43 1 2 3 4 5 0 51 1 2 3 4 5 0

44 1 2 3 4 5 0 1 2 3 4 5 0

D. QUALITY RESULTS

1 1 2 3 4 5 0 3 1 2 3 4 5 0

2 1 2 3 4 5 0

E. SATISFACTION WITH QUALITY IMPROVEMENT RESULTS

1 1 2 3 4 5 6 2.d 1 2 3 4 5 6

2.a 1 2 3 4 5 6 2.e 1 2 3 4 5 6

.2.b 1 2 3 4 5 6 2.f 1 2 3 4 5 6

2.c 1 2 3 4 5 6 2.g 1 2 3 4 5 6

F. EMPLOYEE SATISFACTION/ WORK ENVIRONMENT

1 1 2 3 4 5 6 7 1 2 3 4 5 6

2 1 2 3 4 5 6 8 1 2 3 4 5 6

3 1 2 3 4 5 6 9 1 2 3 4 5 6

4 1 2 3 4 5 6 10 1 2 3 4 5 6

5 1 2 3 4 5 6 11 1 2 3 4 5 6

6 1 2 3 4 5 6 12 1 2 3 4 5 6

G. RECENT MAJOR ORGANIZATIONAL CHANGES

1 Yes No

1.a

1.b

2

H. Working with developing countries Yes N0

1

2 6

3

4 Yes No

5

7

Thank You for Completing This Survey. Please return this filled out answer sheet using

the reply cover provided to you.

bireddy_venugopal_Part_2.pdf

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