Project Report on:

TQM in Small-Scale Industry

Information of the Project Group- Member

Sr.No. Name of the Student 01 02 03 04 Roll No. 01 06 19 41 Signature Date

Anup Singh
Rakshita Gharat Pranita Katkar Snehal R.Mithawkar

05

Vaishnavi Gavande

43

Sign. Of Guide: (Mrs.Gauri Joglekar)

Topics Covered by each:

Sr.No.

Name of the Student

Roll No.

Project work ( done by the student )

01 02 03 04

Anup Singh Rakshita Gharat Pranita Katkar Snehal Mithawkar

01 06 19 41

TQM and VTRADE Customer Satisfaction Quality Awareness Analysis/Interpretation and Limitations

05

Vaishnavi Gavande

43

Quality Policy and Conclusion

INDEX

Sr. No. Contents 01 Objectives and Scope -Why Only VTRADE? 02 TOTAL QUALITY MANAGEMENT -introduction -Definition -Origin -Emerging Necessity for SSI Sector -TQM Philosophy -Objectives 03 Meaning of Small and Medium Enterprises -Limits Small Sector Industrial Policy 1991. -Process/Steps to Implement in SSI 04 VTRADE -Introduction -Vision and Mission -Core Strength -Support and Services -Products -Raw Materials used 05 Customer Satisfaction -Customer Satisfaction of VTRADE -Customer Complaints -Remedial Actions taken by VTRADE 06 Quality Awareness of VTRADE 07 Quality Policy of VTRADE 08 Analysis /Interpretation and Limitation 09 Conclusion 10 References

Sign.

ACKNOWLEDGEMENT

We have taken this opportunity to express our gratitude towards our project Guide Prof. Gauri Joglekar for devoting her valuable time & helping us in our project on-Total Quality Management in Small Scale Industry. We also thankful to our family and all our friends who gave us consent encouragement & valuable guidance which help us at various stages our progress towards achieving necessary knowledge related to project.

Thank you.

Objectives and Scope

Why only VTRADE?

As per our opinion, in this faster period, everyone is depending on Modern Technology. We people also became very dependent on the use of this modern Technology. As we know the technology was invent by man in the end of 18th century. Now in this 21st Century, we are totally depend on the use of the technology, as we people daily directly or indirectly connect with its uses.

Thus, we think that to study the Quality Management of small scale industries, therefore we want to study an industry (Which is mainly done the business in modern machines, equipments, etc.) as VTRADE Company. Also it is a plus point for us that it located in Thane, so it is easier to us to visit it.

By doing this project we had a great Experience, We learn lot of things like, its vision, how the various activities are perform in this company, how they maintain their Product quality, its services, etc.

So, it was a nice experience while done this Project with the VTRADE Company.

 What is mean by TQM? INTRODUCTION:

With ever increasing competition in the market all around the globe, improving the quality is turning out as an important aspect for organizations growth and therefore Total Quality management is most prominent issue related to the organizational management. For this active involvement of each and every individual/group in the production process is necessary and it is required to decide everybodys accountability towards overall quality improvement of the final product or service. As there are various parameters for measuring quality like Reliability, Durability, Usage etc. hence for achieving this a cumulative effort is required from everyone and anyone related to the organization in terms of adequate research, proper feedback and execution. Along with proper utilization of Human Resources it is duty of quality managers to integrate every function and process which affects quality like design and development quality management, improvement control, maintenance, and assurance of quality.

 TQM-DEFINITIONS:

Many management gurus as well as industry leaders have defined TQM in their own words. Following are the few:

1) Total quality management is a management philosophy that managing organizations to improve its overall effectiveness and performance towards achieving world class status.

2) A set of techniques and procedures used to reduce or eliminate variation from a production process or service-delivery system in order to improve efficiency, reliability, and quality.

3) TQM is an integrative philosophy of management for the continuous improvement of product and process quality in order to achieve customer satisfaction.

 THE ORIGIN:
The origin of the TQM goes back to the time of the First World War. During the World War I, there have been a number of quality assurance initiatives taken place due to the large-scale manufacturing required for war efforts. The military fronts could not afford poor quality products and suffered heavy losses due to the poor quality. Therefore, different stakeholders of the war initiated efforts to enhance the manufacturing quality. First of all, quality inspectors were introduced to the assembly lines in order to inspect the quality. Products below certain quality standard were sent back for fixing. Even after World War I ended, the practice of using quality inspectors continued in manufacturing plants. By this time, quality inspectors had more time in their hands to perform their job. Therefore, they came up with different ideas of assuring the quality. These efforts led to the origin of Statistical Quality Control (SQC). Sampling was used in this method for quality control. As a result, quality assurance and quality control cost reduced, as inspection of every production item was need in this approach. During the post-World War II era, Japanese manufacturers produced poor quality products. As a result of this, Japanese government invited Dr. Deming to train Japanese engineers in quality assurance processes. By 1950, quality control and quality assurance were core components of Japanese manufacturing processes and employees of all levels within the company adopted these quality processes. By 1970s, the idea of total quality started surfacing. In this approach, all the employees (from CEO to the lowest level) were supposed to take responsibility of implementing quality processes for their respective work areas. In addition, it was their responsibility to quality control, their own work.

 TQM: AN EMERGING NECESSITY FOR SMALL SCALE INDUSTRY

TQM involves continuous improvement of the production of goods and services aimed, at increasing customer satisfaction. It is a corporate management philosophy which recognizes needs and business goals are inseparable. The benefits of a TQM are improvement of quality, the costs of poor quality, and the ability to compete more effectively. There is a misconception among Indian small scale industry entrepreneurs that TQM and ISO certification are' needed for large scale units and it is an unnecessary expenditure. As the process of liberalization and globalization has affected the Indian SSI sector, the implementation of TQM in this sector is the best solution for their survival. The concept of TQM shall be the new mantra to compete with

TQM which is originated in Japan after Second World War is the most prominent and powerful approach applicable in business, serviceand industrial sectors. The methods for implementing this approachare found in the teachings of quality leaders such as Phillip B. Crosby, Deming, V. Feigenbaum, Ishikawa, Juran and Taguchi.

 TQM PHILOSOPHIES:
TQM is a corporate management philosophy which recognizes that customer needs and business goals are inseparable. A number of TQM Gurus have made their significant contributions. Demings (1982) approach was statistically-based with the under of his fourteen points for management. Dr. Deming lays responsibility pinnings for quality improvement at managements door step. According to him the system is generally the cause of inefficiency & low quality. Juran (1974) proposed his trilogy for improvement, with the linchpins of control, planning, and assurance. Juran thinks that 20% of quality problems are due to workers and the remaining are caused by management. Crosby (1979) recommended a much more behavioural approach, spurning statistics in favour of motivation and teamwork. He sums up quality management in one word, Prevention. He points out that quality improvement is a process not a program. Taguchis (1997) definition of quality is the loss imparted to society from the time a product is shipped. Loss can be one of two things: either loss caused by variability of function or loss caused by harmful side effects.

Cost of Quality (COQ) is considered by the management as one of the important techniques of Total Quality Management especially when an organization changes its approach from detection to prevention as part of its exercise towards inspection and quality control. To maintain/sustain competitive edge, streamline processes, cut down costs, ability to meet customer needs and ability to reduce waste have been considered most important in their quality improvement journey (Walietal 2000).

 OBJECTIVE:

In India, unemployment is a major problem. The SSI sector is most powerful sector in creating new jobs for the societal up lift. For the survival of SSI sector, in the present scenario, the implementation of TQM in SSI sector is the best solution. The concept of TQM may be the new mantra to compete with the multinational companies. By managing quality of the product and service up to or beyond customer requirement is the unique solution. The organizations that are quality conscious and cost competitive will survive. All ready many large and medium industries have adopted the TQM approach, and become successful.

MEANING OF SMALL AND MEDIUM ENTERPRISE:

Small-scale industry comprise of a variety of undertakings. The definition of small scale industry (SSI) varies from one country to another and from one time to another in the same country depending upon the pattern and stage of development, Government policy and administrative set up of the particular country. The SSI sector in India covers a wide spectrum of industries categorised under small, ancillary, tiny small scale service and business enterprises (SSSBEs), omen enterprise and cottage segments, ranging from small artisans/handicraft units on one end to modern production units significant investments on the other.

LIMITS:
Limits Manufacturing Enterprise (Investment Limits) Service Enterprise

Micro Enterprise Small Enterprise

Upto Rs.25lakhs Above Rs.25lakhs Upto Rs.5crores

Upto Rs.10lakhs Above Rs.10lakhs Upto Rs.2crores Above Rs.2crores Upto Rs.5crores

Medium Enterprise

Above Rs.5crores Upto Rs.10crores

TURNOVER: The annual turnover of the VTRADE is 4-5crore.

SMALL SECTOR INDUSTRIAL POLICY, 1991

The government of India announced on 6th August, 1991 a separate policy for small scale industries under the title "Policy Measures for promoting and strengthening and supplementing Small, Tiny and Village Enterprises". The main thrust of the policy is to impart more vitality and growth impetus to the small sector to enable it to contribute its mite fully to the economy particularly in terms of growth of output, employment and exports. Concerned efforts would be made to deregulate the sector with a view to remove all fetters on its growth potential, on the one hand, and reposing greater faith in small and new entrepreneurs, on the other.

The Salient features of this Small Enterprise Policy are as follows: Investment Limit in tiny enterprises has been raised from Rs. 2Lakhs to Rs.5Lakhs irrespective to location. All industry related services and business enterprises, irrespective of their location, would be recognized as small scale industries. A Limited Partnership Act would be introduced to limit the financial liability of new small scale enterprises. A scheme of integrated infrastructural development (including technological back-up services) would be introduced. Factoring Services would be launched to solve the problem of delayed payments to small sector. A technology development cell would be set up in SIDO. Market promotion of products through co-operatives, public institutes and other marketing agencies and corporations. Priority to small and tiny units in the allocation of indigenous and scarce raw materials. Setting up of an Export Development Centre in SIDO.

 Widening the scope of National Equity Fund and enlargement of Single Window scheme. Setting up of a special monitoring agency to observe the credit needs of small sector. Introduction of Special legislation to ensure prompt payment of bills for small-scale units. To provide access to capital market, large-scale units will be allowed equity participation in small units up to 24%.

What is Process or Steps to implement TQM in Small-Scale Industry? Implementation Of TQM In A Small Scale Industry:

1: Support of management: It is compulsory for the successful launching and implementation of TQM program in the organization. The management should be well aware of TQM and they should undergo for training, if required.

2: Putting the customer first: Achieving customer satisfaction is at the heart of TQM. Both internal and external customers are important. Meet directly with customers to discuss their requirements.

3: Expressing the total quality goals loudly: Publicizing and communicating your goals and progress broadly. This is especially important for people in top leadership positions.

4: Identify and understand key Functions and Processes: This involves identifying and flowcharting the key processes. Focus on processes rather than departments to avoid interdepartmental barriers. Look at each process; can it be simplified or streamlined? Can you reduce steps or the number of people involved?

5: Use of TQM tools: The company must train employees about various TQM tools like cause effect Diagrams , pie Charts, PDCA CYCLE, Pareto charts and promote their use in day to day working to as to help them in decision making.

6: Focus On System Improvements: The focus for quality improvements should be on improving systems and processes. Employee improvement is important in the process because this will allow them to work more effectively. It is important that everyone recognize that quality needs to be built into every process and product, not inspected in.

 VERTEX POWERTECH PRIVATE LIMITED

(VTRADE)
VTRADE is the pioneer and the only emerging giant in retailing of power backup and renewable energy products. It has been formed to tap the immense potential promised by power backup industry in India. From a decade the Industry has been facing challenges for its operations in an unstructured ways and consumers have been victimized with non-standard products and manufacturers. VTRADE is conceptualized, implemented, led by its founder and CEO Mr.Sujal Shah having 21 years of profound experience in the industry and have been working at varied levels of the same. VTRADE is an attempt to restructure the orthodox format of operations of the industry and help consumer to understand and choose the products accurately as per their need and budget. VTRADE is one of the trustworthy retail chains which are helping to bridge the lacuna between the companies and the customers. VTRADE with its extensive franchising model is able to reach its consumers pan India with its outlets scattered widely in rural and urban region of the country.

VISION & MISSION:

As pioneers of power backup industry retailing and Indias preferred chain of power backup products superstores, have a high level of responsibility towards our customer for the faith they place upon us. VTRADE sales would give its customers best value, best products and the best available service in the industry. To recognize the customer's right to Quality, Services, Timely Delivery and Cost. Honesty towards our customers, principals and our associates would be the pillar on which VTRADE would stay and grow.

CORE STRENGTH:
VTRADE is the pioneer and the only emerging giant in retailing of power backup and renewable energy products. It has been formed to tap the immense potential promised by power backup industry in India. It is multi brand multi product retail chain and stocks an entire range of power conditioning, power backup and renewable energy products right from Voltage stabilizers and cut offs, Generators, Inverters, UPS, Batteries, Solar water heater, Solar Lighting and windmills. VTRADE retails worlds most renowned brands like Microtek, Su -kam, Kevin, Luminous, Exide, Amron, Mahindra, Kirloskar, APC, Emerson Numeric, Tata BP, Reliance and many more. Our core strength comprises of highly experienced and qualified technocrats, who works on new revolutions, keeping an eye on the recent advancements in the technology.

VTRADE are a customer oriented organization and believe in upholding the highest professional values. The focus on the quality management system is our commitment to the customer to deliver the highest quality and durable products.

SUPPORT & SERVICE :

VTRADE currently have 21 outlets containing service centers. VTRADE conduct professional training certification program for shoppee managers and shoppee assistants on regular intervals. VTRADE have highly professional, trained and easily accessible centralize customer service setup. VTRADE also provide annual maintains program for our products. VTRADE have customized CRM solution at the shoppee locations which help us to track the sales inquiry timely delivery and customer queries if any.

 WHAT ARE THE PRODUCTS OF VTRADE?

Products:

WHICH TYPE OF RAW MATERIALS USED?

Raw Materials:
Cathode Materials Anode Materials Electrolytes Separate Battery Casing The Battery Chemistry The Batterys electrolyte The Batterys specialized hardwaretors

 WHAT IS CUSTOMERS SATISFACTION? Customers Satisfaction:

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold.

 Customers Satisfaction Of VTRADE:

VTRADE provide various schemes to their Customers. Eg.1.InDiwali they provide discount offers to their Customers. 2. They provide after-sale-service at a free of charge. 3. In last year they conduct Lucky Draw System which is beneficial to their customers. In this, many people win MOBILE PHONES, TSHIRTS. One of their customers wins NANO CAR.

Customer Complaints and Remedial Actions of VTRADE Company:

Customer Complaints: Low capacity of battery Small warranty period Poor after sales services Poor working condition of batteries Improper raw materials

 Remedial Actions:
1. Have an action plan for customer complaints. When a customer complains, what she is really doing is telling you how you can improve your service. Have a system in place so customer-service employees can document complaints. Create a customer-grievance form your employees can fill out when a customer is unhappy. Management should collect the grievance forms periodically and review them to identify recurring complaints. 2. Survey all customers for feedback on their buying experience. There are a number of ways to do this. VTRADE have survey forms that can be filled out and dropped in a container. Or it hand customers a survey form as they leave the store, offering incentives such as a 10 % discount if they bring or mail it back. It also has an online survey that offers a printable store coupon when completed. Customers survey form can be as simple as the customer choosing a level of satisfaction from one to five in any given area of service, but leave space for additional comments.

3. It makes adjustments based on customer feedback and complaints. Knowing what customers are complaining about will not help you reduce complaints unless you are willing to make changes. Have a brainstorming session with managers and employees to see what changes can be made to prevent customers dissatisfaction. 4. Train employees to provide excellent service. A well-treated customer is less likely to complain than a poorly treated one. Employees should be trained to treat customers with excellence and be given some leeway in their ability to address customer needs.

 HOW VTRADE CREATE QUALITY AWARENESS?

Quality Awareness:

Build awareness of service:

VTRADE ranges from holding workshops to sensitizing

government officials and firms about export potential and opportunities, and engaging the media to better inform, academia and support institutions. Improve service: Prioritize affordable, widespread telecommunications access. Build credibility :

VTRADE Consider incorporating services in branding strategies.

Promote quality certification for services. Promote "bundling" of related services as a package. Think about policy reform: Provide transparency in domestic regulation and work with neighbouring and regional countries to eliminate obstacles to service trade. Consider how to improve access to financing and the movement of workers across borders.

 EXPLAIN QUALITY POLICY OF VTRADE?

Quality Policy Of VTRADE:

VTRADE is conscious of the need to fulfil its obligations under any contract with a customer to produce the desire outcome in a cost effective, planned, systematic and legal manner and to determine, assess and achieve quality and economy in the execution of the Companys duties.

This policy intends to benefit both the customer and the Company through increasing customer satisfaction, leading to growth in existing markets and investment in new market areas. Of vital importance is our commitment to supply quality products which comply with the contractual, statutory and regulatory requirements applicable to the products and deliver a proactive and timely pre- and post- order service to our customers.

The management and employees of K4 General Trading & Contracting Co. are committed to provide the best in class products and services and maintain leadership position in the markets we serve. Our goal is to achieve complete customer satisfaction in supply of products & services related to automotive parts, Automobile body paints and Aluminium cladding projects.

Analysis or Interpretation and Limitation:

In the Question-Answer, the Respected Sir told us that the Objective of their Company is EXPANSION. So, we think that the company should have to expand its business. According, to our analysis, the VTRADE Company is having only 20 shops in Maharashtra state. Thus, we think that they should have to expand their Trade not only in Maharashtra but also over in India. Also as to increase the Quality Level of the Products, the Company should have to provide proper Training (with Modern Techniques in Working System) to their employees (workers). Company also wants to offer other special offers to attract Customers, as there are many competitors in the market. As, Company can organise various exhibition programmes, seminars for society knowingness about their products (like exhibition of Batteries, Inverters, Machines, etc.)

Conclusion:

TQM in a small-scale industry is very important and useful. As compared to Large and Medium scale Industries, Quality Circles, Small group activity, Kaizen implementation are much easier in case of an SSI unit. Even though it is expensive to implement TQM in an SSI unit, but is worthwhile investment to sustain and excel in the global markets.

The seven actions suggested by the researcher shall help SSI to begin with TQM so as to compete with other large companies There is misperception among Indian SSI entrepreneurs that TQM and ISO certification are needed for large scale industries and it is an unnecessary expenditure.

But the certification will convey the message that they are producing products and services of higher quality and in the long run these companies shall be in a position to make handsome profit.

Hence TQM have an important role to play in increasing the efficiency of the SSI and reducing the unfruitful expenditure to enhance profitability and to remain competitive.

References:
Webliography: 1. www.vtrade.com 2. www.wikipedia.org 3. www.wiley.com

Bibliography: 1. Entrepreneurship & Management of Small & Medium Enterprises Third Edition: Nov., 2012 Author Name: Sunny Fernandes Publisher: Rishabh Publishing House 2. TQM: Implementation, Scope and Myths - A Review Sharma Pankaj, Jain Naman and Pruthi Kunal
Department of Mechanical Engineering, Seth Jai Parkash Mukund Lal Institute of Engineering and Technology Radaur, Haryana, INDIA

Available online at: www.isca.in

Received 14th May 2013, revised 31st May 2013, accepted 14th June 2013