Project Report

on

TOTAL QUALITY MANAGEMENT IN HETERO DRUGS

Submitted

By

HT No: 101846318
 INDEX

SYNOPSIS

ACKNOWLEDGEMENTS

CHAPTER I TOTAL QUALITY MANAGEMENT

1.1 INTRODUCTION

1.2 PRINCIPLES OF TQM

1.3 FACTOR AFFECTED THE COMMITMENT OF THE EMPLOYEES

1.4 HISTORY AND DEVELOPMENT OF TQM

CHAPTER II LITERATURE RIVIEW

2.1 The Concept of Total Quality Management (TQM)

2.2 Benefits of Introducing TQM

2.3 The Difficulties of Implementing TQM

2.4 THE ROLE OF QUALITY IMPROVEMENT TEAMS IN TQM STRATEGY

2.5 INSTITUTING TQM CULTURE IN ORGANISATIONS: EMPLOYEE INVOLVEMENT

CHAPTER III TOATAL QUALITY MANAGEMENT UNDER STUDY

3.1 INTRODUCTION ABOUT THE COMPANY

3.2 THE EIGHT ELEMENTS OF TQM

3.3 TQM MODEL

CHAPTER IV CONCLUSIONS AND RECOMMENDATIONS

BIBLOGRAPHY
SYNOPSIS

Total Quality Management is a new mantra in ever organization. It is defined involvement of all

the employees in organization towards achieving quality product on a continual improvement

basis. The present study was conducted in a cement industry in Hyderabad Viz. Hetero Drugs,

Hyderabad. For collecting the data and input . One of the quality philosophy is adopted by

Toyota Company in Japan, General Motors in USA, Honda company in Japan, Maruti Udyog in

India, Tata Steel, TVS Group of companies, Mahindra and Mahindra group of Companies has

adopted Total Quality Management principles in their organizations. There are so many

intellectuals working towards the principles of Quality management system. Edward Deming,

Shewart, Juran are pioneers for implementing the quality management principles and given

number of demonstrations throughout the world for development of quality systems in

organization. The Total Quality Management principles not only applicable to organizations and

it can be adopted in service organizations as well. Applo Hospitals, Sun Rise Hospitals, in

Hyderabad has adopted Total Quality Management System in their service organizations.

The objectives of the Present Study

• Understand what total quality management (TQM) and why it is important.

• Outline the various definitions of quality and project TQM’s viewpoint about

Quality
• Bring out the characteristics features of TQM

• Give special attention the way TQM has been presented as a model.

• Guiding the organization by its values, vision, mission, and goals set through ‘strategic

planning processes.

• Changing the organization from function focused to customer focused, where customer

priorities come first in all activities.

• Making the organization flexible and learning oriented to cope with change

• Provide confidence to its internal management and other employees that the

requirements of quality are being fully filled.

• Provide confidence to the customer and other stakeholders

• Improve the quality of its own operations.

• Achieve, maintain, and continuously improve the quality of products

• Reduction of the lead times

 • Increase of the flexibility and profitability

• Early mistake recognition

• Mistake prevention as a preventive step

Purpose of The Present Study

1.Reduction in wastage

It ensures things are done right and first time ok, so this reduces wastage and defects

Quality Assurance . TQM guarantees that all the products and even operations in the org. are of

a certain quality standard. This promotes trust to the consumers and also maintains a healthy

environment for employees.

2. Customer-based

TQM focuses on the needs of the customers and can be used effectively, to

make changes to the existing product design to meet such needs.

3. Failure Analysis

TQM is a statistical tool also. Hence provides a learned person with the faults

and failures in various processes. This in turn can be used to make corrective progress.
4. Make Continuous Improvement

A TQM organization will also view change positively whether the change

involves a process change or a change in customer needs and expectations. This is because

changes will enable the organization to develop and explore quality.

5. Managing Supplier Quality

Company Concepts must extend to company suppliers Employee empowerment Increased

employee involvement in design and planning. Process improvement Reduced waste and cycle

times in all areas through cross departmental process analysis.

6. Employee empowerment

Increased employee involvement in design and planning.

7. Process improvement

Reduced waste and cycle times in all areas through cross

departmental process analysis.

The present study is divided in to four chapters

Chapter I gives the important aspects of Total Quality Management and its principles

Chapter II gives the Literature Review of the Total Quality Management System adopted and

its research findings

Chapter III gives the brief introduction of the company and the scope of present study and data

collection and analysis

Chapter IV gives conclusions and recommendations of the present study limitations of the

present study

Bibliography indicates the list of Journals , Books refered for the preparation of the present

study.
 CHAPTER I

1. TOTAL QUALITY MANAGEMENT

1.1 Introduction:

Total quality management has evolved from the quality assurance methods that were first

developed around the time of the First World War. The war effort led to large scale

manufacturing efforts that often produced poor quality. To help correct this, quality

inspectors were introduced on the production line to ensure that the level of failures due to

quality was minimized.

Total quality management is a management’s approach towards the quality; it can be in

regard to products, customer satisfaction an employee’s satisfaction. This concept is for

improving the quality of various products and services. Earlier it was just related with the

quality of products which an organization is producing but now other concepts like marketing,

finance design, customer service has also joined the area. TQM works on one belief that

mistakes can be avoided and defects can be prevented. And management should believe in

watching each and every step. It is the process designed to focus external/internal customer

expectation preventing problems building, commitment to quality in the workforce and

promoting to open decision making.

QUALITY:-

1. Quality means fitness for intended use.

2. Quality means productivity, competitive cost, and timely delivery, total customer

satisfaction.

3. Quality means conformance to specification and standard.

4. Conformance to requirements.

5. Quality is what the customer says

6. Quality means getting every one to do what they have agreed to do and to do it right the first

time and every time.

TOTAL QUALITY :-

It means all the people of the organization are committed to product quality by doing right

things right, first time, every time by employing organization resource to provide value to

customer.
TOTAL QUALITY MANAGEMENT: -

It is the process designed to focus external/internal customer expectation preventing problems

building ,commitment to quality in the workforce and promoting to open decision making

TOTAL:

Every one associated with the company is involved in continuous improvement, in all functional

area, at all level.

QUALITY:

Customer express and implied requirement is met fully.

MANAGEMENT:

Executive are fully committed

Decision in a planned way.

To maintain existing lever of quality.

To improve existing lever of quality.

Effective utilization of resource.

1.2 PRINCIPLES OF TQM:-

1.Delight the customer

2. Management by fact

3. People based management

4. Continuous improvement

5. Strong leadership

6. Quality system measure& record

7. Team work, Team accountable, correct problem

8. People oriented technology, speed.

FOUR C’S OF TQM

1. Commitment 2. Competence

3. Communication 4. Continuous improvement

1.3 FACTOR AFFECTED THE COMMITMENT OF THE EMPLOYEES:-

General worker attitude toward the company.

General worker attitude toward the supervisor.

Lever of satisfaction toward job standard.

The lever of consideration the supervisor shows to his subordination.

The workload & work pressure level.

The treatment of individual by the management

The lever of worker’s satisfaction with the salaries

The level of worker pride in the company and its activity

Worker reaction to the formal communication network in the organization.

Intrinsic job satisfaction level of the worker.

Worker attitude toward the fellow worker.

TQM is the way of managing for the future, and is far wider in its application than just assuring

product or service quality – it is a way of managing people and business processes to ensure

complete customer satisfaction at every stage, internally and externally. TQM, combined with

effective leadership, results in an organization doing the right things right, first time.
The core of TQM is the customer-supplier interfaces, both externally and internally, and at each

interface lie a number of processes. This core must be surrounded by commitment to quality,

communication of the quality message, and recognition of the need to change the culture of

the organisation to create total quality. These are the foundations of TQM, and they are

supported by the key management functions of people, processes and systems in the

organisation.

What is quality?
A frequently used definition of quality is “Delighting the customer by fully meeting their needs

and expectations”. These may include performance, appearance, availability, delivery,

reliability, maintainability,cost effectiveness and price. It is, therefore, imperative that the

organisation knows what these needs and expectations are. In addition, having identified them,

the organisation must understand them, and measure its own ability to meet them.

Quality starts with market research – to establish the true requirements for the product or

service and the true needs of the customers. However, for an organisation to be really

effective, quality must span all functions, all people, all departments and all activities and be a

common language for improvement. The cooperation of everyone at every interface is

necessary to achieve a total quality organization, in the same way that the Japanese achieve

this with company wide quality control.

Customers and suppliers

There exists in each department, each office, each home, a series of customers, suppliers and

customer supplier interfaces. These are “the quality chains”, and they can be broken at any

point by one person or one piece of equipment not meeting the requirements of the customer,

internal or external. The failure usually finds its way to the interface between the organization

and its external customer, or in the worst case, actually to the external customer.

Failure to meet the requirements in any part of a quality chain has a way of multiplying, and

failure in one part of the system creates problems elsewhere, leading to yet more failure and
problems, and so the situation is exacerbated. The ability to meet customers’ (external and

internal) requirements is vital

Customers (internal and external)

• Who are my customers?

• What are their true needs and expectations?

• How do, or can, I find out what these are?

• How can I measure my ability to meet their needs and expectations?

• Do I have the capability to meet their needs and expectations?

(If not, what must I do to improve this capability?)

• Do I continually meet their needs and expectations?

(If not, what prevents this from happening when the capability exists?)

• How do I monitor changes in their needs and expectations?

Suppliers (internal and external)

• Who are my internal suppliers?

• What are my true needs and expectations?

• How do I communicate my needs and expectations to my suppliers?

• Do my suppliers have the capability to measure and meet these needs and expectations?

• How do I inform them of changes in my needs and expectations?

1.4 HISTORY AND DEVELOPMENT OF TQM

The origin of TQM can be traced to 1949, when The Union of Japanese Scientists and Engineers

(JUSE) formed a committee of scholars, engineers, and government officials devoted to

improving Japanese productivity and quality of life (Cole 1998, Powell 1995). American firms

began to take TQM seriously around 1980, when some observers argued that Japanese

manufacturing quality equaled or exceeded U.S. standards, and warned that Japanese

productivity would soon surpass that of American firms. Productivity trends supported these

assertions, predicting that Japanese and other Asian countries would soon dominate world

trade and manufacturing (Powell 1995). The reliability of certain Japanese made products (cars

and semiconductors) was 5-10 times better than comparable U.S. products. At the same time,

consumers started to pay attention to product quality. For example, quality was a low priority

among car buyers in the 1970s, yet in the early 1980s, it was the most significant (Cole 1998).

President Reagan signed the legislation for mandating national study (U.S) in 1982, with the

intent to encourage productivity and competitiveness. The final report from that study included

that “a national quality award similar to Deming Price; should be awarded annually…

requirements and the accompanying examination process should be very

similar to Deming Prize system to be effective”. This study led to the formation of a

committee to establish the national quality award in 1985 and to the creation of the

Malcolm Baldrige National Quality Improvement Act of 1987. The Malcolm Baldrige National

Quality Award was created to unify and focus on quality

management improvement efforts in the U.S. The quality award model, together with ISO 9000

series quality systems, has been the leading force in shaping and spreading the quality

management ideology and practices during the last decade. CPE represents the latest era in the

evolution of quality management discipline. This evolution process51 has four distinct stages

(Garwin 1988, Wiele 1998).

1) Inspection: In the early stages of the discipline, simple inspection processes were used

to ensure the quality of the product. Product and services were compared to pre-

determined standards to ensure the appropriate quality levels for customers. This

inspection process generally did not have any influence on production activities or in the

determination of those requirements.

(2) Quality control: Under quality control, statistical tools and methods are used to

control the manufacturing process. The focus shifted from inspection to reducing

process variability. However, the ultimate target had remained the same to meet the

requirements. Quality control activities also included a cause-and-effect analysis to understand

the immediate cause for variability and root causes for failure.

(3) Quality assurance: This stage began the era of quality planning. While quality

control was still a reactive approach for detecting problems and fixing them, quality assurance

focused upon proactively anticipating and avoiding those problems. Additional advances
planning for quality and improving the design of the products were required. These approaches

still relied heavily on statistical and cause-effect analyses which, contrary to the quality control

era, were used to plan for quality.

(4) Total quality management: The fourth stage of managing quality was introduced during the

last decade. The original approach to TQM53 relies on the approaches created in the previous

stages of the discipline but applies them on a wider scale.

The above development of the discipline demonstrates how total quality management has

evolved from being narrowly focused on statistical process control to encompass a variety of

technical and behavioral methods for improving organizational performance. Whereas

statistical process control is a precise set of quality improvement techniques, TQM extends

these methods to all functions and management levels of an organization (Grant et al. 1994).

The change of scope moved quality management to a completely new arena, a holistic

approach for the general management of an organization.

During the late 1990s, additional developments took place. Early analysis of TQM

identified the role of quality in strategy as one of the main differences between the TQM and

management theory perspectives (Dean and Bowen 1994; Cole 2000). This difference was

evident in the early years of the awards, but the modification of the award criteria in 1995

changed this limited scope of quality award criteria in the area of strategic planning. The

strategy development process was given a wider scope and included items beyond planning for

quality. If we consider CPE to be a holistic management discipline, this development is well

justified from a management theory standpoint. Quality is a potentially important source of

competitive advantage, but it is not the only one (Dean and Bowen1994, Cole 2000). However,

this development further separates TQM from its original application.

Grant et al. (1994) identifies four distinct features in the origin and the diffusion of TQM as a

management innovation: intellectual origin, sources of innovation, national origin, and

dissemination process. Modern management theory originates from social sciences,

microeconomics, psychology and sociology. On the contrary, TQM has origins in statistical

process control. The originators of TQM innovations have been pioneers of the discipline, who

worked in industry and had background mainly in engineering and physics. This foundation

contradicts the origin of most new management ideas as being developed by academia and

management consulting. Management innovations normally have been based on North

American national origin. TQM is based on the integration of management techniques, which

were developed in Japan and brought to North American industry. This dissemination process

was led originally by smaller companies such as Florida Power and Light

The History and early development of TQM is important for this study, because it can be

theorized that some of TQMs basic underlying assumptions are based on early applications of

TQM. Additionally, the content and structure of the discipline have been impacted by the fact

that it has been introduced as a training platform and/or consultant product to audiences

having a background in engineering. In this role it has formed into rational approach to

management, which brings forward only generally acceptable issues (such as the important role

of customer). TQM has rarely been presented in the context of complex social relations such as

organizational power and politics

 C H A P T E R II

2. LITERATURE REVIEW

2.1 The Concept of Total Quality Management (TQM)

1. TQM is only one of many approaches to getting work done and accomplishing goals.

Several experiences have shown that by using a TQM approach, organizations can increase

their capacity to do work, increase the quality of work done and, at the same time, hold

staffing levels and budgets at historical levels. This is possible because

2. The organization recognizes that the vast majority of problems are caused by people doing

the wrong things right: work that should never be done, even though it is done very well.

3. The organization recognizes that those problems are caused by ineffective systems and

procedures. That recognition extends to the belief that the people who do the work are

best able to fix these systems and procedures.

4. The organization recognizes that in order to unleash the talents of everyone in the

company, people must be provided with opportunities to learn new skills and to practice

those skills. The

5. organization also believes that given the opportunity, people willingly participate in

designing the organization of the future.

Philip Crosby (1979 ) argued that quality is neither intangible nor immeasurable. Instead it is a

strategic imperative that can be used to improve the bottom line. Quality is defined as

"conformance to requirements," not "goodness." Terms such as good, excellent, beautiful,

exclusive, are subjective and vague. When quality is defined as 3conformance to

requirements, subjectivity disappears. Any service, product or process that conforms to its

requirements is a quality service, product or process. If requirements are not met, non-

conformance results. Requirements define the output, the input or the process itself by

providing descriptions of process characteristics in a manner that promotes mutual

understanding and agreement between customers and their suppliers. Requirements are

based on customer expectations and are integrated into each of the activities of a work

process flow. Often, customer expectations are expressed in terms of convenience, comfort,

ease of use, and aesthetics. For example, a customer may want a piece of equipment that is

"state of the art" or information that is "up to date." When this happens, the suppliers must

use the knowledge of the processes involved to translate those needs or desires into specific

requirements. A researcher in the quality literature can experiences bafflement in the

meaning of TQM and the differences between TQM and qualityassociated activities such as

quality assurance, quality control and quality management. This confusion leads, in many

cases, to the use of these expressions interchangeably. Therefore, it is very important to have

a clear definition and understanding of each of these concepts.

The American Society of Civil Engineers (ASCE) defines "quality assurance (QA) in its

publication “Quality in the Constructed Project” (1990) as "A program covering activities

necessary to provide quality in the work to meet the project's requirements. QA involves

establishing project-related policies, procedures, standards, training, guidelines, and systems

necessary to produce quality. The design professional and constructor are responsible for

developing an appropriate program for each project." On the other hand, ASCE defines
 quality control (QC) as "The specific implementation of the QA Program and it includes

checking and reviewing design and construction related activities. Effective QC reduces 4the

possibility of changes, mistakes and omissions, which in turn results in fewer conflicts and

disputes." The most common problem with a quality assurance program is that the

contractor/vendor assumes that his QA program is not based on 100% assurance. As long as

this is the impression of the contractor/vendor, he will never have a working QA program.

One element of quality, which the contractor/vendor seems to always forget, is the element

that requires him to examine any problem fully and determine the cause of the problem for

complete elimination of the same problem in the future. If this element of quality was

fulfilled, then eventually the contractor/vendor would have a 100% defect-free quality

assurance program. As long as a contractor/vendor aims for anything less than 100%, his

quality assurance program will never attain a status of 100%, nor will it ever be a fully

implemented quality assurance program. In addition, as long as owners expect less than 100%

from the contractor/vendor, they will never be supplied with the quality required, and as long

as owners continue to waive the required quality by allowing anything less than the

requirements in the specifications, they will continue to receive sub-standard, or sub-

specfication materials.

The keywords of the TQM concept are:

quality, total, and management.

“Quality” has been defined in many different ways. Among these definitions are the following

(Flood, 1993):
1. ASCE defines quality as the conformance to predetermined 5requirements.

2. The British Standard defines quality as the totality of features and characteristics of a

product, service or process, which bear on its ability to satisfy a given need from the customer's

viewpoint.

3. Crosby (1979) defines quality as conformance to requirements. This can be achieved by

"doing it right the first time."

4. Deming (1986) defines quality as a predictable degree of uniformity and dependability, at low

cost and suited to the market.

5. Taguchi defines quality as the minimum loss imparted by the product to society from the

time the product is shipped.

6. Feigenbaum (1991) defines quality as a way of managing the organization.

7. Juran defines quality as fitness for use.

8. Hoshin defines quality as correcting and preventing loss, not living with loss.

9. Flood, (1993) in his book "Beyond TQM," defines quality as "meeting The customer's (agreed)

requirements, formal and informal, at the lowest cost, first time, every time." This definition

consolidates different definitions of quality in one, more or less, comprehensive statement.

The second important term is “total”. The term total quality indicates how TQM is a company-

wide effort. In fact, TQM involves everyone's effort in the organization in order to improve

performance. This makes TQM an instrument that considers quality as a strategic objective for
an organization (Burati, 1990). In other words, TQM can be achieved through an integrated

effort among personnel at all levels, to increase customer satisfaction by continuously

improving performance. The integrated effort among personnel can be achieved by having

effective and comprehensive management. This leads to the third keyword “management." The

responsibility for management is everyone's, as "total" implies. In other words, everyone

6should be responsible for managing their own jobs and this integrates managers with their

workers and everyone else in the organization.

The essence of TQM is to achieve customer satisfaction, cost effectiveness, and defect-free

work. TQM does this through focusing on process improvement, customer and supplier

involvement, teamwork, training and education.

TQM is a culture advocating a total commitment to customer satisfaction, through continuous

improvement and innovation in all aspects of the business.

The customer, in the TQM culture, does not mean only the final recipient of the organization's

end product or services. The customer is also every individual or department within the

organization (Logothetis, 1992). The TQM culture varies from one company to another and

from one industry to another. However, the TQM culture, regardless of its differences from one

company to another, aims to achieve common objectives; namely removal of waste, reduction

of costs, improvement of reputation and increased market share. As can be observed, TQM

objectives are dynamic in their nature and this dictates continuous updating and upgrading

(Logothetis,1992).
2.2 Benefits of Introducing TQM

The most important benefits of introducing TQM into a company are the following (Fox, 1993):

1. It makes the company focus clearly on the needs of its market. This is essential for a company

to survive in the competitive market.

2. It helps in achieving a top quality performance in all areas, not only in the final product or

service quality. In fact, achieving top quality performance in all areas reflects substantially on

the final product or service quality, since quality is a continuous chain.

3. It assists in implementing the simple procedures necessary for the achievement of quality

performance.

4. It helps, critically and continuously, in examining all processes to remove non-productive

activities and waste.

5. It determines the required improvements and develops a measure of performance.

6. It provides full, detailed understanding of the competition and develops an effective

competitive strategy.

7. It develops the team approach to problem solving.

8. It develops good procedures for communication and recognition of outstanding work.

9. It reviews continuously the processes to develop the strategy of never ending improvement
10. Management objectives, such as customer satisfaction, meeting specifications, larger

market share, higher productivity, zero defects, increase in sale and decrease in costs, can be

achieved by embodying TQM ethics in all aspects of the organization.

2.3 The Difficulties of Implementing TQM

The implementation of TQM into an organization requires fundamental organizational culture

change. Changing an organization's culture is a very difficult task, which often faces resistance.

The challenge of implementing TQM is due to the fact that TQM is not a slogan, nor a tool, nor

a program; it is an organization paradigm. The concept of TQM is broad enough to be the

framework or foundation of an organization's culture. Therefore, implementing TQM might be

dealing with replacing, rather than 8modifying, the organization's culture. Furthermore, the

transformation from the traditional Western paradigm to the TQM paradigm is a radical

change.

Glover, (1992) showed the significant differences between the two management approaches.

A study conducted by Longenecker and Scazzero, (1993) revealed that managers and

supervisors in the organization that they surveyed were reluctant to change their behavior to

support the critical organizational endeavor of implementing TQM.

The reason for this is that it is difficult, even in normal times, for managers in any organization

to change their management style and behavior.

The main reasons for their reluctance to change include the following:
1. senior management's lack of commitment to the process, as evidenced by their failure to

practice TQM.

2. too many changes in too short a time.

3. mixed signals in terms of the pressure to get immediate results without reduced production

output.

4. too little assistance in redefining roles.

5. little positive feedback on individual performance, while criticism and negative feedback are

plentiful.

Among the other difficulties in implementing TQM is the failure to have some means of

monitoring and managing the overall progress of TQM implementation, and the failure to

provide skills training immediately before TQM is applied. Finally, regarding TQM as only an

internal process and thus failing to involve suppliers, subcontractors, and others in the process

chain creates a major difficulty in implementing TQM.

Brown, et al., (1994) identified what they believe are the reasons for TQM implementation

failure. Organizations go through three identifiable phases during the pursuit of TQM. These

phases are:

1. Start-up: This is the initial stage where workers at all levels get themselves acquainted with

the basic principles of TQM. This phase involves, also, implementing quality improvement

projects using the tools and techniques of TQM.

2. Alignment: In this phase, the organization realizes that it must align its organizational

systems and practices to support quality and team work.

3. Integration: In the third phase, the organization integrates TQM principles into every aspect

of the organization's operations. Each phase has its own challenges and common mistakes.

Table 1 lists the common reasons for TQM failure in each phase.

Table 1. Reasons for TQM failure (Brown, et al 1994)

No. Phase Reasons for TQM failure

I. Start-up

1. Lack of management commitment

2. Poor training and pacing

3. Wasted education and training

4. Lack of short-term, bottom line result.

II. Alignment

1. Divergent strategies

2. Inappropriate measures

3. Outdated appraisal methods

4. Inappropriate rewards
III. Integration

1. Failing to transfer true power to employees

2. Maintaining outmoded management practices

3. Poor organization and job design

4. Outdated business systems

Lakhe and Mohanty (1994a) discussed a case study of TQM implementation. The major

obstacles of implementation were:

a. inadequate knowledge and information about TQM;

b. doubts of employees about management's intentions;

c. failure of management to maintain interest and commitment over

a long period of time;

d. difficulty in measuring the effectiveness of TQM;

e. poor internal communication;

f. difficulty in assessing customer expectations and satisfaction;

g. insufficient training resources.

 2.4 THE ROLE OF QUALITY IMPROVEMENT TEAMS IN TQM STRATEGY

One of the major obstacles that have bedeviled the successful implementation of TQM is the

non – recognition of quality teams in organizations in the quest for a successful strategy that

will lift the organization above its competitors (Stanford, 2005). Team effectiveness is crucial to

the implementation of TQM because the development of people and their involvement in the

operations of an organization through teamwork is very essential ,and for it not to be seen as

such ,will only ruin the collective effort of inputs towards the actualization of a functional

quality delivery strategy like the TQM(Lewis,2004)

Quality improvement teams cuts across employees of organizations, representatives of

customers and suppliers with a major objective of meeting the set target of achieving quality. In

doing this, it is pertinent to note that certain criteria have to be fulfilled in order to get the

desired result from a quality improvement team, since it embraces almost all the stakeholders

that lay claim to a business, and these criteria, according to Geirhybein (2004) include choosing

the leader and members of the team. In doing this, the team leader must:

 Possess effective Leadership Behaviour

 Possess the attributes of effective conflict management

 Should have the ability of encouraging innovation

 Have adequate knowledge of effective meeting management

 Manage and send out schedule of events and activities.

 Make certain that the team members are conversant with the modus operandi of team

meetings/activities.
 Endeavour to make certain that meeting venues are secured well ahead of time.

 Engage in meeting with front line managers on favourable times for team meetings.

 Should be prompt and alert to time.

 Ability to record activities of team meetings in minutes as well as collation of data.

 Sets an agreed time for the next meeting as well as communicates minutes and ensure that

action is taken for matters raised.

 Ability to identify training needs of the quality team in addition to be a good contributor and

listener, and this can be achieved by being dedicated to the intended purpose of the team

through effective commitment.

 Similarly, Geirhybein (2004) suggested what members need to have in order to be effective in

quality delivery teams:

 Members must be willing, not forced or coerced to join a quality team for the fun of it.

 Members need to be passionate about what the quality team sets out to achieve at all times as

the direct result of such commitment is the outright benefit of quality service.

 Members should be prepared to share their experiences with the team leader as well as among

themselves, for the overall benefit of the team.

 Members should be able to buy into shared team vision

 Present in the members should be the spirit of natural collaboration

 Need to respect the views of other members when they speak, listen to them when they have

issues to raise as well as, be able to communicate effectively with both the team leader and

members.

 Members should equally be ready to take down minutes at the request of the team leader, be

prepared to follow up actions when directed and never be afraid to say ‘I don’t understand’

when situations arise .

 Members need also to be able to contribute meaningfully to discussions on the floor during

meetings as well as being effective listeners.

Quality improvement initiatives typically involve the directed efforts of quality improvement

teams. Making adequate use of quality improvement teams and empowering employees to

solve quality-related issues using such tools as AMO(Ability, Motivation and Opportunity) as

exemplified in the work of Purcell et al.( 2003) can serve as a leverage for the implementation

of a TQM system. The effective use of quality improvement teams, and the TQM system as a

whole, can be strengthened by the basic application of principles of motivation, especially the

the recognition of team achievements as against those of individual employees, and the

effective use of goal setting for team efforts, are crucial in driving the process of TQM. The HRM

department is in a vantage position to help institutionalize team approaches to TQM by

designing appraisal and reward systems that focus on team performance, Fran, (2002).
2.5 INSTITUTING TQM CULTURE IN ORGANISATIONS: EMPLOYEE INVOLVEMENT

People can be better managed to embrace TQM by institutionalizing TQM organizational

culture in the employees, so as to be able to deliver quality products and services to customers,

Collinson et al, (2003). Human resource management can play a crucial role in the i

mplementation of TQM strategy. HR managers or practitioners are responsible for recruiting

and selecting high-quality employees, the continuous training and development of these

employees, and the creation and sustenance of reward systems. Therefore, TQM sees to the

control of processes that are pivotal to the accomplishment of cultural changes often required

for TQM to be successfully implemented, Haigh and Morris, (2002). Directing the TQM cultural

development initiatives to the organisations’ conditions is important in subduing opposition to

change and moving beyond simple compliance toward a total commitment to TQM processes.

According to De Wit and Mayers, (2005), holding a significant connecting role between top

management and employees, HRM has many avenues to institute communication channels

between top management and other members of the organization. Using these channels, HRM

practitioners can ensure that employees realize that they are the organization's number one

priority in implementing TQM. Engendering trust and confidence through an open interchange

of purposeful ideas can help eliminate fears regarding the work-role changes that TQM needs.

This can provide the building block for all employees to be trained to see their colleagues in

other divisions as equal internal customers to the organisation. This is another avenue for HRM

to highlight this new outlook by example. Through this means, that is, focusing on satisfying the

needs and wants of the customer first and foremost, HRM can institute a departmental view of

service throughout the entire hierarchy of an organization.

A major function of HRM’s expertise is its capability to scrutinize and provide assessment for

employee attitudes. This expertise can be significantly essential in driving the process for a

proper implementation of TQM, since getting it right from the onset (conceptualization stage)

entails having adequate data/information about current performance level. Therefore, a

preliminary action is to implement an employee assessment, targeting two prime areas. One

requires the identification of the difficult parts of organizations’ current operations, where

innovations in quality can have the most significant impact on an organizations’ performance

level. The other part, targets the perceptions and attitudes of employees towards quality as a

fundamental issue, so as to ensure that, the implementation of TQM can be revitalized, for

better effectiveness and efficiency, Collinson et al.,( 2003).

Achieving assistance from other divisions in an organization in the use of surveys to a great

extent depends largely on their perception of HRM's position in the survey process. The

challenge is to ensure that HRM is not having an over bearing influence on other departmental

functions, but rather, to be seen as an important ally in making their own quality

improvements. Achieving this status, can be accomplished in the participative nature of the

TQM philosophy by involving other divisions in the organization, towards the development of

the survey instrument to be used. This involvement begins the process of carrying each division

in the organization along, so as to see TQM as a strategy to be embraced by all employees of an

organization (Haigh and Morris, 2002).

 C H A P T E R III

Industry Profile

Pharmaceutical Industry

“The Indian pharmaceutical industry is a success story providing employment for millions and ensuring

that essential drugs at affordable prices are available to the vast population of this sub-continent.”

Richard Gerster

The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with

wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in

the third world, in terms of technology, quality and range of medicines manufactured. From simple

headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of

medicine is now made indigenously.

Playing a key role in promoting and sustaining development in the vital field of

medicines,Indian Pharma Industry boasts of quality producers and many units approved by regulatory

authorities in USA and UK. International companies associated with this sector have stimulated, assisted

and spearheaded this dynamic development in the past 53 years and helped to put India on the

pharmaceutical map of the world.

 Growth Scenario in 2010

India's pharmaceutical industry is now the third largest in the world in terms of volume. Its rank is 14th

in terms of value. Between September 2008 and September 2009, the total turnover of India's

pharmaceuticals industry was US$ 21.04 billion. The domestic market was worth US$ 12.26 billion. This

was reported by the Department of Pharmaceuticals, Ministry of Chemicals and Pharmacys. As per a

report by IMS Health India, the Indian pharmaceutical market reached US$ 10.04 billion in size in July

2010. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion,

growing at about 8 to 9 percent annually. Know more out this in our article on Indian Pharmaceutical

Industry- Future Trends Also check outPharmaceutical Market Trends 2010

Leading Pharmaceutical Companies

In the domestic market, Cipla retained its leadership position with 5.27 per cent share. Ranbaxy

followed next. The highest growth was for Mankind Pharma (37.2%). Other leading companies in the

Indian pharma market in 2010 are:

 Sun Pharma (25.7%)

 Abbott (25%)

 Zydus Cadila (24.1%)

 Alkem Laboratories (23.3%)

 Pfizer (23.6 %)

 GSK India (19%)

 Piramal Healthcare (18.6 %)

 Lupin (18.8 %)

For details check out List of Top 10 Pharmaceutical Companies in India

Future Prospects

The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in

2009. This was stated in a report title "India Pharma 2020: Propelling access and acceptance, realising

true potential" by McKinsey & Company. In the same report, it was also mentioned that in an aggressive

growth scenario, the pharma market has the further potential to reach US$ 70 billion by 2020

Due to increase in the population of high income group, there is every likelihood that they will open a

potential US$ 8 billion market for multinational companies selling costly drugs by 2015. This was

estimated in a report by Ernst & Young. The domestic pharma market is estimated to touch US$ 20

billion by 2015. The healthcare market in India to reach US$ 31.59 billion by 2020. The sale of all types

of pharmaceutical drugs and medicines in the country stands at US$ 9.61 billion, which is expected to

reach around US$ 19.22 billion by 2012. Thus India would really become a lucrative destination for

clinical trials for global giants.

There was another report by RNCOS titled "Booming Pharma Sector in India" in which it was projectedt

that the pharmaceutical formulations industry is expected to prosper in the same manner as the

pharmaceutical industry. The domestic formulations market will grow at an annual rate of around 17%

in 2010-11, owing to increasing middle class population and rapid urbanisation. Read More in Future

Prospects of Indian Pharma Industry.

Characteristics of Indian Pharmaceutical Industry

The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has

expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of

the market with market leader holding nearly 7% of the market share. It is an extremely fragmented
market with severe price competition and government price control.

The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug

intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are

about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical

industry in India (including 5 Central Public Sector Units). These units produce the complete range of

pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk

drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.

Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs

and pharmaceutical products has been done away with. Manufacturers are free to produce any drug

duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the

pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific

manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical

Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property

Protection regime is well set to take on the international market.

Why India?

Competent workforce: India has a pool of personnel with high managerial and technical competence as

also skilled workforce. It has an educated work force and English is commonly used. Professional

services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved

cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of

bulk drugs and exports sophisticated bulk drugs.

Legal & Financial Framework: India has a 53 year old democracyand hence has a solid legal framework

and strong financial markets. There is already an established international industry and business

community.

Information & Technology: It has a good network of world-class educational institutions and established

strengths in Information Technology.

Globalisation: The country is committed to a free market economy and globalization. Above all, it has a

70 million middle class market, which is continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical industry is finding great

opportunities in India. The process of consolidation, which has become a generalized phenomenon in

the world pharmaceutical industry, has started taking place in India.

Steps to strengthen the Industry

Indian companies need to attain the right product-mix for sustained future growth. Core competencies

will play an important role in determining the future of many Indian pharmaceutical companies in the

post product-patent regime after 2005. Indian companies, in an effort to consolidate their position, will

have to increasingly look at merger and acquisition options of either companies or products. This would

help them to offset loss of new product options, improve their R&D efforts and improve distribution to

penetrate markets.
Research and development has always taken the back seat amongst Indian pharmaceutical companies.

In order to stay competitive in the future, Indian companies will have to refocus and invest heavily in

R&D.

The Indian pharmaceutical industry also needs to take advantage of the recent advances in

biotechnology and information technology. The future of the industry will be determined by how well it

markets its products to several regions and distributes risks, its forward and backward integration

capabilities, its R&D, its consolidation through mergers and acquisitions, co-marketing and licensing

agreements.

The Indian pharmaceutical industry is the world's second-largest by volume and is likely to lead the

manufacturing sector of India.1India's bio-tech industry clocked a 17 percent growth with revenues of

Rs.137 billion ($3 billion) in the 2009-10 financial year over the previous fiscal. Bio-pharma was the

biggest contributor generating 60 percent of the industry's growth at Rs.8,829 crore, followed by bio-

services at Rs.2,639 crore and bio-agri at Rs.1,936 crore.2 The first pharmaceutical company are Bengal

Chemicals and Pharmaceutical Works, which still exists today as one of 5 government-owned drug

manufacturers, appeared in Calcutta in 1930. For the next 60 years, most of the drugs in India were

imported by multinationals either in fully formulated or bulk form. The government started to

encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with

the Patents Act in 1970, enabled the industry to become what it is today. This patent act removed

composition patents from food and drugs, and though it kept process patents, these were shortened to

a period of five to seven years. The lack of patent protection made the Indian market undesirable to the

multinational companies that had dominated the market, and while they streamed out, Indian

companies started to take their places. They carved a niche in both the Indian and world markets with
their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Although

some of the larger companies have taken baby steps towards drug innovation, the industry as a whole

has been following this business model until the present.

Statistics

Top 10 Pharmaceuticals in India, as of 2010

Revenue Revenue
Rank Company
2010(Rs crore) 2010(Rs billion)

1 Ranbaxy Laboratories 4,198.96 41.989

2 Dr. Reddy's Laboratories 4,162.25 41.622

3 Cipla 3,763.72 37.637

4 Sun Pharmaceutical 2,463.59 24.635

5 Lupin Ltd 2,215.52 22.155

6 Aurobindo Pharma 2,081.19 20.801

7 GlaxoSmithKline 1,773.41 17.734

8 Cadila Healthcare 1,613 16.13

9 Aventis Pharma 983.80 9.838

10 Ipca Laboratories 980.44 9.8044

In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of

formulations and bulk drugs. 85% of these formulations were sold in India while over 60% of

the bulk drugs were exported, mostly to the United States and Russia25. Most of the players in

the market are small-to-medium enterprises; 250 of the largest companies control 70% of the

Indian market 1. Thanks to the 1970 Patent Act, multinationals represent only 35% of the

market, down from 70% thirty years ago20.

Most pharma companies operating in India, even the multinationals, employ Indians almost

exclusively from the lowest ranks to high level management. Mirroring the social structure,

firms are very hierarchical. Homegrown pharmaceuticals, like many other businesses in India,

are often a mix of public and private enterprise. Although many of these companies are publicly

owned, leadership passes from father to son and the founding family holds a majority share.

In terms of the global market, India currently holds a modest 1-2% share, but it has been

growing at approximately 10% per year27. India gained its foothold on the global scene with its

innovatively engineered generic drugs and active pharmaceutical ingredients (API), and it is

now seeking to become a major player in outsourced clinical research as well as contract

manufacturing and research. There are 74 U.S. FDA-approved manufacturing facilities in India,

more than in any other country outside the U.S, and in 2005, almost 20% of all Abbreviated

New Drug Applications (ANDA) to the FDA are expected to be filed by Indian companies21,27.

Growth in other fields notwithstanding, generics are still a large part of the picture. London

research company Global Insight estimates that India’s share of the global generics market will

have risen from 4% to 33% by 2007.

Product development

Indian companies are also starting to adapt their product development processes to the new

environment. For years, firms have made their ways into the global market by researching

generic competitors to patented drugs and following up with litigation to challenge the patent.

This approach remains untouched by the new patent regime and looks to increase in the future.

However, those that can afford it have set their sights on an even higher goal: new molecule

discovery. Although the initial investment is huge, companies are lured by the promise of hefty

profit margins and the recognition as a legitimate competitor in the global industry. Local firms

have slowly been investing more money into their R&D programs or have formed alliances to

tap into these opportunities.

Small and medium enterprises

As promising as the future is for a whole, the outlook for small and medium enterprises (SME) is

not as bright. The excise structure changed so that companies now have to pay a 16% tax on

the maximum retail price (MRP) of their products, as opposed to on the ex-factory price.

Consequently, larger companies are cutting back on outsourcing and what business is left is

shifting to companies with facilities in the four tax-free states - Himachal Pradesh, Jammu &

Kashmir, Uttaranchal and Jharkhand.12Consequently a large number of pharmaceutical

manufacturers shifted their plant to these states, as it became almost impossible to continue

operating in non tax free zones. But in a matter of a couple of years the excise duty was revised

on two occasions, first it was reduced to 8% and then to 4%. As a result the benefits of shifting

to a tax free zone was negated. This resulted in, factories in the tax free zones, to start up third
party manufacturing. Under this these factories produced goods under the brand names of

other parties on job work basis.

As SMEs wrestled with the tax structure, they were also scrambling to meet the July 1 deadline

for compliance with the revised Schedule M Good Manufacturing Practices (GMP). While this

should be beneficial to consumers and the industry at large, SMEs have been finding it difficult

to find the funds to upgrade their manufacturing plants, resulting in the closure of many

facilities. Others invested the money to bring their facilities to compliance, but these operations

were located in non-tax-free states, making it difficult to compete in the wake of the new excise

tax.

Challenges

All of these changes are ultimately good for the Indian pharmaceutical industry, which suffered

in the past from inadequate regulation and large quantities of spurious drugs. They force the

industry to reach a level necessary for global competitiveness. However, they have also

exposed some of the inadequacies in the industry today. Its main weakness is an

underdeveloped new molecule discovery program. Even after the increased investment, market

leaders such as Ranbaxy and Dr. Reddy’s Laboratories spent only 5-10% of their revenues on

R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last year was

greater than the combined revenues of the entire Indian pharmaceutical industry13, 37. This

disparity is too great to be explained by cost differentials, and it comes when advances in

genomics have made research equipment more expensive than ever. The drug discovery
process is further hindered by a dearth of qualified molecular biologists. Due to the disconnect

between curriculum and industry, pharmas in India also lack the academic collaboration that is

crucial to drug development in the West.

R&D

Both the Indian central and state governments have recognized R&D as an important driver in

the growth of their pharma businesses and conferred tax deductions for expenses related to

research and development. They have granted other concessions as well, such as reduced

interest rates for export financing and a cut in the number of drugs under price control.

Government support is not the only thing in Indian pharma’s favor, though; companies also

have access to a highly developed IT industry that can partner with them in new molecule

discovery

Labor force

India’s greatest strengths lie in its people. India also boasts of well-educated, English-speaking

labor force that is the base of its competitive advantage. Although molecular biologists are in

short supply, there are a number of talented chemists who are equally as important in the

discovery process. In addition, there has been a reverse brain drain effect in which scientists are

returning from abroad to accept positions at lower salaries at Indian companies. Once there,

these foreign-trained scientists can transfer the benefits of their knowledge and experience to

all of those who work with them13,25. India’s wealth of people extends benefits to another

part of the drug commercialization process as well. With one of the largest and most genetically
diverse populations in any single country, India can recruit for clinical trials more quickly and

perform them more cheaply than countries in the West47. Indian firms have just recently

started to leverage.

Biotechnology

Relationship between pharmaceuticals and biotechnology

Unlike in other countries, the difference between biotechnology and pharmaceuticals remains

fairly defined in India. Bio-tech there still plays the role of pharma’s little sister, but many

outsiders have high expectations for the future. India accounted for 2% of the $41 billion global

biotech market and in 2003 was ranked 3rd in the Asia-Pacific region and 11th in the world in

number of biotechs.45 In 2004-5, the Indian biotech industry saw its revenues grow 37% to

$1.1 billion.2,9 The Indian biotech market is dominated by biopharmaceuticals; 75% of 2004-5

revenues came from biopharmaceuticals, which saw 30% growth last year. Of the revenues

from biopharmaceuticals, vaccines led the way, comprising 47% of sales46. Biologics and large-

molecule drugs tend to be more expensive than small-molecule drugs, and India hopes to

sweep the market in biogenerics and contract manufacturing as drugs go off patent and Indian

companies upgrade their manufacturing capabilities.

 Top 10 Pharmaceuticals in India, as of 2010

Revenue Revenue
Rank Company
2010(Rs crore) 2010(Rs billion)

1 Ranbaxy Laboratories 4,198.96 41.989

2 Dr. Reddy's Laboratories 4,162.25 41.622

3 Cipla 3,763.72 37.637

4 Sun Pharmaceutical 2,463.59 24.635

5 Lupin Ltd 2,215.52 22.155

6 Aurobindo Pharma 2,081.19 20.801

7 GlaxoSmithKline 1,773.41 17.734

8 Cadila Healthcare 1,613 16.13

9 Aventis Pharma 983.80 9.838

10 Ipca Laboratories 980.44 9.804

Patents

As it expands its core business, the industry is being forced to adapt its business model to

recent changes in the operating environment. The first and most significant change was the

January 1, 2005 enactment of an amendment to India’s patent law that reinstated product

patents for the first time since 1972. The legislation took effect on the deadline set by the

WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, which

mandated patent protection on both products and processes for a period of 20 years. Under

this new law, India will be forced to recognize not only new patents but also any patents filed

after January 1, 1995.3 Indian companies achieved their status in the domestic market by

breaking these product patents, and it is estimated that within the next few years, they will lose

$650 million of the local generics market to patent-holders42.

In the domestic market, this new patent legislation has resulted in fairly clear segmentation.

The multinationals narrowed their focus onto high-end patients who make up only 12% of the

market, taking advantage of their newly bestowed patent protection. Meanwhile, Indian firms

have chosen to take their existing product portfolios and target semi-urban and rural

populations
 Top 20 Biotechnology Companies in India, 2010

Revenue Revenue
Rank Company
2010(Rs crore) 2010(USD millions)

1 Biocon 646 148.6

2 Serum Institute of India 565 129.9

3 Panacea Biotec 217 50.0

4 Venky's (India) Limited 188 43.2

5 Mahyco Monsanto 166 38.3

6 Novo Nordisk 135 31.0

7 Rasi Seeds 87 20.0

8 Aventis Pharma 84 19.4

9 Bharat Serums 81 18.6

10 Chiron Behring Vaccines 78 17.9

11 GlaxoSmithKline 78 17.9

12 Indian Immunologicals 72 16.6

 13 Shantha Biotechnics 70 16.1

14 Novozymes 69 15.9

15 Eli Lilly and Company 68 15.7

16 Wockhardt 67 15.4

17 Bharat Immunological & Biological Corp. 53 12.3

18 Bharat Biological International 41 9.4

19 Advanced Biochemicals 40 9.1

20 Biological E 36 8.3

USD 1 = Rs 43.5
Source: BioSpectrum Top 20: A threshold crossed
Most companies in the biotech sector are extremely small, with only two firms breaking 100

million dollars in revenues. At last count there were 265 firms registered in India, over 75% of

which were incorporated in the last five years.2,47 The newness of the companies explains the

industry’s high consolidation in both physical and financial terms. Almost 50% of all biotechs

are in or around Bangalore, and the top ten companies capture 47% of the market. The top five

companies were homegrown; Indian firms account for 62% of the biopharma sector and 52% of

the industry as a whole.4,46 The Association of Biotechnology-Led Enterprises (ABLE) is aiming

to grow the industry to $5 billion in revenues generated by 1 million employees by 2009, and

data from the Confederation of Indian Industry (CII) seem to suggest that it is possible.7,47

Comparison with the U.S.

The Indian biotech sector parallels that of the U.S. in many ways. Both are filled with small

start-ups while the majority of the market is controlled by a few powerful companies. Both are

dependent upon government grants and venture capitalists for funding because neither will be

commercially viable for years. Pharmaceutical companies in both countries have recognized the

potential effect that biotechnology could have on their pipelines and have responded by either

investing in existing start-ups or venturing into the field themselves.36 In both India and the

U.S., as well as in much of the globe, biotech is seen as a hot field with a lot of growth potential.

Relationship with IT

Many analysts have observed that the hype around the biotech sector mirrors that of the IT

sector. Biotech colleges have been popping up around the country eager to service the pools of
students that want to take advantage of a growing industry.7 The International Finance

Commission, the private investment arm of the World Bank, called India the “centerpiece of

IFC’s global biotech strategy.” Of the $110 million invested in 14 biotech projects investment

globally, the IFC has given $43 million to 4 projects in India.29 According to Dr. Manju Sharma,

former director of the Department of Biotechnology, the biotech industry could become the

“single largest sector for employment of skilled human resource in the years to come.”5 British

Prime Minister Tony Blair was similarly impressed, citing the success of India’s biotech industry

as the reason for his own country’s own biotech opportunities.22 Malaysia is also looking to

India as an example for growing its own biotech industry.41

Government support

The Indian government has been very supportive. It established the Department of

Biotechnology in 1986 under the Ministry of Science and Technology.47 Since then, there have

been a number of dispensations offered by both the central government and various states to

encourage the growth of the industry. India’s science minister launched a program that

provides tax incentives and grants for biotech start-ups and firms seeking to expand and

establishes the Biotechnology Parks Society of India to support ten biotech parks by 2010.

Previously limited to rodents, animal testing was expanded to include large animals as part of

the minister’s initiative.10 States have started to vie with one another for biotech business, and

they are offering such goodies as exemption from VAT and other fees, financial assistance with

patents and subsidies on everything ranging from investment to land to utilities19.

Foreign investment

The government has also taken steps to encourage foreign investment in its biotech sector. An

initiative passed earlier this year allowed 100% foreign direct investment without compulsory

licensing from the government1.6 In April, a delegation headed by the Kapil Sibal, the minister

of science and technology and ocean development, visited five cities in the U.S. to encourage

investment in India, with special emphasis on biotech.32 Just two months later, Sibal returned

to the U.S. to unveil India’s biotech growth strategy at the BIO2005 conference in Philadelphia.9

Challenges

The biotech sector faces some major challenges in its quest for growth. Chief among them is a

lack of funding, particularly for firms that are just starting out. The most likely sources of funds

are government grants and venture capital, which is a relatively young industry in India.

Government grants are difficult to secure, and due to the expensive and uncertain nature of

biotech research, venture capitalists are reluctant to invest in firms that have not yet developed

a commercially viable product.26 As previously mentioned, India hopes to solve its funding

problem by attracting overseas investors and partners. Before these potential saviors will invest

significant sums in the industry, however, there needs to be better scientific and financial

accountability. India is slowly working towards these goals, but it will be a while before they are

up to the standards of Western investors.

India’s biotech firms share another problem with their pharmaceutical cousins: a lack of

qualified employees. Biotech has the additional disadvantage of competing against IT for
ambitious, science-minded students but not being able to guarantee the same compensation.

An aspiring researcher in India needs 7–10 years of education covering a range of specialties in

order to qualify to work in biotech. Even if a student does choose to go on the biotech path, the

ineffectual curriculum at many universities makes it doubtful as to whether he will be qualified

to work in the field once finished. One estimate shows that 10% of upper-echelon biotech

recruits have come from foreign countries. While this is not a problem, per se, it drives up cost

in a country whose competitive advantage is based on cheap, high-quality labor. Far from

ending with scientists, there is also a shortage of people with a knowledge of biotechnology in

related fields: doctors, lawyers, programmers, marketing personnel and others.7,15,17

While little has been done about the latter half of the employee crunch, the government has

addressed the problem of educated but unqualified candidates in its Draft National Biotech

Development Strategy. This plan included a proposal to create a National Task Force that would

work with the biotech industry to revise the curriculum for undergraduate and graduate study

in life sciences and biotechnology. The government’s strategy also stated intentions to increase

the number of PhD Fellowships awarded by the Department of Biotechnology to 200 per year.

These human resources will be further leveraged with a “Bio-Edu-Grid” that will knit together

the resources of the academic and scientific industrial communities, much as they are in the

U.S.5
Major players

Glenmark

Glenmark is a emerging leader of Indian Pharmaceutical market in sales as well in Research.

Soon new chemical entities will hit the market.

Ranbaxy Laboratories

Ranbaxy is the leader in the Indian pharmaceutical market, taking in $1.174 billion in revenues

for a net profit of $160 million in 2004. It was the first Indian pharmaceutical to have a

proprietary drug (extended-release ciprofloxacin, marketed by Bayer) approved by the U.S.

FDA, and the U.S. market accounts for 36% of its sales. 78% of Ranbaxy’s sales are from

overseas markets; its offices in 44 countries manage manufacturing in 7 countries and

distribution in over 100.

IMS Health estimated that Ranbaxy is among the top 100 pharmaceuticals in the world and that

it is the 15th fastest growing company. By 2012, Ranbaxy hopes to be one of the top 5 generics

producers in the world, and it consolidated its position with the purchase of French firm RGP

Aventis in 2003. Ranbaxy also has higher aspirations, however, “to build a proprietary

prescription business in the advanced markets.” To this end, it keeps a dedicated research

facility in Gurgaon staffed with over 1100 scientists. They currently have two molecules in

Phase II trials and 3-5 in pre-clinical testing. It spent $75 million in R&D in 2004, a 43% increase

over its 2003 expenditure.

Arun Puri is the chairman and CEO Brian Tempest is the only non-Indian on the senior

management team.38,39

Dr. Reddy's Laboratories

Founded in 1984 with $160,000, Dr. Reddy’s was the first Asia-Pacific pharmaceutical outside of

Japan and the sixth Indian company to be listed on the New York Stock Exchange. It earned

$446 million in fiscal year 2005, deriving 66% of this income from the foreign market. In order

to strengthen its global position, Dr. Reddy acquired UK-based BMS Laboratories and subsidiary

Meridian Healthcare. Anji Reddy is the chairman of Dr.Reddy's.

Although 58% of Dr. Reddy’s revenues come from generic drugs, the company was committed

to WTO-compliance long before the 2005 bill took effect, and most of these products were

already off patent. Dr. Reddy has long been a research-oriented firm, preceding many of its

peers in setting up a New Drug Development Research (NDDR) in 1993 and out-licensing its first

compound just four years later. Dr. Reddy’s has since outlicensed two more molecules and

currently has three others in clinical trials.

Although Dr. Reddy’s is publicly traded, the Reddy family (including founder/chairman K. Anji

Reddy, son-in-law/CEO GV Prasad and son/COO Satish Reddy) holds a hefty 26% share in the

company.11,44
Nicholas Piramal

The company led by Asish Mishra grossing $350 million per year, Nicholas Piramal started its

existence with the 1988 acquisition of Nicholas Laboratories and grew through a series of

mergers, acquisitions and alliances. The company has formed a name for itself in the field of

custom manufacturing. It cites its 1700-person global sales force as another core strength; with

its acquisition of Rhodia’s inhalation anaesthetics business, Nicholas Piramal gained a sales and

marketing network spanning 90 countries34.

Nicholas Piramal is well-poised for the challenge of surviving in the aftermath of product patent

protection. The company has respected intellectual property rights since its inception and

refused to "support generic companies seeking first-to-file or early-to-market strategies."

Instead, it decided to make its own intellectual property and opened a research facility last

November in Mumbai with hopes of launching its first drug in 2010 at a cost of $100,000.24,33

Cipla

Cipla is one of the oldest drug manufacturers in India. It is led by Dr. Yusuf K. Hamied,

Chairman and Managing Director. Cipla burst into the international consciousness in 2000 with

Triomune, an AIDS treatment costing between $300 and $800 per year that infringed upon

patents held by several companies who were selling the cocktail for $12,000 per year. Long

before this news, Cipla had been building a strong global presence, and it now distributes its

800-odd products in over 140 countries. Privately held Cipla holds a prominent spot in its home

country as well; it is the leader in domestic sales, having just unseated GlaxoSmithKline for the
first time in 28 years. Revenue in 2004 totaled $552 million (using Rs 43.472 = $1) about 75% of

which was derived in India. Cipla did not report having a research program.8,18

|Dr. Kiran Mazumdar-Shaw is the Chairman and Managing Director of BiocoIrish chemicals

company seeking to break into the Indian market, Biocon is now the leading biotech in India,

bringing in Rs 646.36 crore (almost $150 million) in revenue for fiscal year 2004. It initially made

its money by producing enzymes, but Biocon recently decided to become a research-oriented

company with the goal of bringing a proprietary new drug to market.

The company went public in March 2004, and "its shares were oversubscribed by 33 times on

opening day." Eight months later it launched Insugen, a bio-insulin that is its first branded

product. Biocon also has two wholly owned subsidiaries, Syngene and Clinigene, that perform

custom research and clinical trials.3,14,31

Serum Institute of India

Main article: Serum Institute of India

The Serum Institute of India can make the enviable claim that 2 out of every 3 children in the

world are immunized with one of their vaccines. It is the world’s largest producer of measles

and DTP vaccines, and its portfolio includes other vaccines, antisera, plasma products and

anticancer compounds. The Serum Institute earned Rs 565 crore ($130 million) in revenue in

fiscal year 2005, selling mainly to UN agencies and to the Indian government. The Serum

Institute is part of the Poonawalla Group, whose holdings include a horse stud farm and
manufacturers of industrial equipment and components. Dr. Cyrus Poonawalla is the Chairman

of the company.
 CHAPTER IV

COMPANY PROFILE
Hetero Company Profile

Hetero is a research based global pharmaceutical company focused on development,

manufacturing and marketing of Active Pharmaceutical Ingredients (APIs), Intermediate

Chemicals & Finished Dosages. Ever since its establishment in 1993, Hetero showed a tradition

of excellence and deep sense of commitment in developing cost effective processes to offer

wide range of affordable drugs.

Hetero is building on the strengths of vertical integration in discovery research, process

chemistry, API manufacturing, formulation development and commercialization. Hetero is a

leading international supplier with a rich portfolio of over 200 products from wide range of

therapeutic categories both in active pharmaceutical ingredients and finished dosages.

Hetero’s manufacturing facilities are cGMP compliant meeting global standards in terms of

infrastructure and systems. Majority of them are approved by the various regulatory authorities

of USFDA, WHO-Geneva, Australian TGA, Spanish agency of medicines & health care products,

ANVISA-Brazil, IDA-Netherlands etc.,

With full-fledged marketing capabilities, the company has been able to market its products in

over 138 countries across the globe.

Hetero Drugs, the parent company established in 1993 is one of the largest Indian

pharmaceutical companies with over 2000 crores in revenues and employs more than 5000

employees. Hetero is a vertically integrated pharmaceutical company and is a leading player in

API’s and finished dosages. Hetero supply’s API’s and finished dosages to major domestic and

international generic companies.

Hetero operates in more than 100 countries and its manufacturing facilities meet various

national and international standards including USFDA. Hetero has a portfolio of more than 200

products and is a leading company in bringing new generic molecules to the market.

About Founder.

A Visionary Scientist

"Where the future started yesterday........ works a day ahead of future...."

Dr. Bandi Parthasaradhi Reddy, Chairman & Managing Director of Hetero group is academically

endowed with a Post Graduate and Doctoral degrees with distinction in the field of synthetic

chemistry. Prior to founding of Hetero Drugs Limited, Dr. B.P.S Reddy had a stint in leading

pharmaceutical companies as the head of the Research & Development division. His sharp

analysis and ability to synthesize various chemical compounds lead to the discovery of new

processes, cost effective schemes for manufacturing of various pharmaceutical products.

During the said period Dr.B.P.S Reddy has the credit of introducing many new molecules for the

first time in Indian pharmaceutical market.

A visionary the world knows as Dr. B.P.S.Reddy, is the driving force behind this growing

pharmaceutical phenomenon called “HETERO”. Dr.B.P.S.Reddy’s dream child, Hetero was born

in the year 1993 as a small API unit. Today, 17 years later, the name is synonymous with
leadership in pharmaceuticals with more than 18 manufacturing units and 8000 employees. An

entity that is grown in stature by virtue of its combined strength in research, manufacturing and

marketing.

Dr. B.P.S.Reddy steered Hetero towards the forefront of global pharmaceutical industry with his

vision to be recognised as an aggressive company that combines its strength of R&D and

manufacturing with definite advantages in terms of cost and chemistry with a strong emphasis

on quality of the products.

Dr. B.P.S.Reddy is now focusing on giving new dimensions to Hetero in terms of research and

innovation programs in discovery research to take the company to greater heights.

Awards & Accolades

Hetero has been scaling new heights on a continual basis. These achievements have been the

result of concerted efforts on the part of different functions within the organisation to achieve

the organisational goal of being a leader.

In its path to success, Hetero has seen many a milestone being crossed and achieved many

awards on various fronts. Awards for exemplary work in R&D and marketing are just a few to

name.

A track of few events that saw Hetero reaching its Zenith of glory are :
2009

• Top Pharmexcil Gold Patent award.

• Top Pharmexcil Outstanding Export Performance award in Drugs and Pharmaceuticals.

2006

• Chemexil Trishul export award for outstanding export performance 2001 Excellence &

National Integration award in recognition of the efforts for excellence with affairs connected

with educational specialties and creating teaching skills besides promoting harmony at all levels

in the college.

1999

• Highest exporter award against stiff competition from internationally recognized

domestic competitors.

1998

• Top Chemexil award for Exports.

1996

• National award for "Best Efforts in Research and Development" from the Department of

Scientific and Industrial Research, Ministry of Science and Technology, Government of India, in

the year 1996.

Corporate Social Responsibility is our commitment

Hetero Group always believes in the concept of giving back to the society to uplift the living

standards in the surrounding society as one of the prime responsibilities and always took the

lead. The Group is committed for implementation of various CSR initiatives and contributes

substantially to the cause.

Hetero Group received appreciation from the Government of Andhra Pradesh, for its

outstanding contribution in the implementation of Corporate Social Responsibility. .

Environment Protection:

Completed One Million Plantation Programme.

Taking up Plantation in the surrounding Schools.

Completed Plantation in newly acquired 15 acres land and a total of 25000 Nos. of saplings

made.

Provided substantial amount to the industrial association for the development of infrastructure

and environment in Kazipally IDA.

Provision of Biomass Pellets for cooking purpose in place of LPG gas.

Research & Development

Research & Development is the foundation of Hetero’s philosophy of developing cost-effective,

high quality and safe medicines to society. Hetero Research Foundation is one of the most

innovative, productive, and respected scientific research organizations which is recognized by

the Department of Science & Technology, Government of India.

Hetero Research Foundation (HRF) has a team of over 400 dedicated scientists working in the

areas of Process, Analytical and Discovery Research. R & D centre conforms to international

standards and has advanced equipment for both basic and applied research.

Process R&D

HRF has developed process for 150 plus molecules for various markets. The R&D team actively

involved in process development, scaling-up technology transfer and associates with

manufacturing team through out life cycle of product.

HRF has always been emphasizing to ensure that the processes being adopted for the products

are cost effective, safe to handle and with optimum advantage in terms of yield and quality.

Analytical R&D

Analytical research at HRF is equipped to conduct complete physical and chemical

characterisation of API’s/ NCE’s. Further, the team is well versed with regulatory filings and has

vast experience in documentation. The infrastructure includes advanced instruments like LC-

MS-MS, GC-MS, NMR, Powder XRD apart from several HPLC systems.
 Having a strong commitment and experience in bringing quality

medicines to all, Hetero entered into the pharmacy services as part

of its integration strategy. Having a strong knowledge in this space

we believe we can provide high quality services to our customers.

Less than year after the launch of Hetero Pharmacy in Hyderabad, we scaled up to more than

100+ pharmacies across AP. We are still growing aggressively to serve our customers better.

Hetero also has its outlets at the prestigious Nizam’s Institute of Medical Sciences (NIMS)

Punjagutta, Hyderabad and GMR international airport, Hyderabad.

At our pharmacy outlets we provide:

Qualified & trained Pharmacists

Helps you comply with prescription instructions. No scope for spurious drugs, expired medicines and

substitution

Availability of wide range of medicines

Pharmacy, surgical, disposables, ARV, anti-cancer, life saving and general

Healthcare products by Indian and International companies

Storage as specified

Stocking drugs as per prescribed temperature standards, thereby retaining their quality and

effectiveness
Computerized billing system

Proper display of batch numbers, price & expiry with no waiting time

Low Prices

Special discount on printed M.R.P

Patient education leaf-lets

Health tips & dietary suggestion

INDUSTRIALISATION AND ECONOMIC DEVELOPMENT

We have emphasised in the previous chapters the need for a substantial and rapid improvement in

agriculture in order to increase the supply of foodgrains and raw materials needed in the country. The

fact that at the present juncture it is necessary to give the highest priority to agricultural development

including the building up of the necessary basic services like irrigation and power does not, however,

mean that industrial development is in any sense less important. In the development of an

underdeveloped economy there is really no conflict between agricultural and industrial development.

Improvement in agriculture cannot proceed beyond a point unless the surplus working force on the land

is progressively diverted to industries and services. Similarly, industrial development itself cannot

advance sufficiently without a large increase in the supply of food necessary to maintain the population

thus diverted and of the raw materials needed to enable industries to expand production. The fact that

the productivity of labour in industry is much higher than in agriculture also points to the need for rapid

industrial development. Moreover, in an underdeveloped country the surpluses created in the industrial

sector are likely to be available for investment relatively more easily than surpluses in the agricultural

sector. The pattern of industrialisation to be adopted, that is, the relative emphasis on capital goods

industries and consumer goods industries and the degree of capital intensiveness in different lines of
industry, has, of course, to be decided in the light of several technical, economic and social factors. But

there is no doubt that over a period the desired rate of economic progress will necessitate a rapid

diversification of the occupational structure through development of industry, together with trade and

transport.

INDIAN INDUSTRIAL STRUCTURE

2. The relative backwardness of industiral development in India may be judged from the fact that in

1948-49 factory establishments accounted for only 6.6 percent of total national income. The total labour

force engaged in such establishments is about 2.4 million or 1.8 percent of the working population in the

country. While in the aggregate India's industrial output may look massive, per head of population it is

very much lower than the industrial output in advanced countries.

3. Prior to the first world war the only major industries which had developed substantiaflly were cotton'

and jute textiles, for which the country had exceptional natural advantages. The industrial development

since the twenties is associated with the adoption of a more progressive industrial and fiscal policy.

Between 1922, when the policy of discriminating 420.

the contribution of the Industrial Sector in India GDP

The industrial sector is one of the main sectors that contribute to the Indian GDP. The country ranks

fourteenth in the factory output in the world. The industrial sector is made up of manufacturing, mining

and quarrying, and electricity, water supply, and gas sectors. The industrial sector accounts for around

27.6% of the India GDP and it employs over 17% of the total workforce in the country. The Growth Rate
of the Industrial Sector in India GDP came to around 5.2% in 2002- 2003. In this year, within the India

GDP, the mining and quarrying sector contributed 4.4%, the electricity, water supply, and gas sector

contributed 2.8%, and the manufacturing sector contributed around 5.7%.

The Growth Rate of the Industry Sector in India GDP came to around 6.6% in 2003- 2004 and in this year,

the electricity, water supply, and gas sector contributed 4.8%, the mining and quarrying sector

contributed 5.3%, and the manufacturing sector contributed 7.1% in India GDP. Industry Growth Rate in

India GDP came to 7.4% in 2004- 2005, with the manufacturing sector contributing 8.1%, the mining and

quarrying sector contributing 5.8%, and the water supply, electricity, and gas sector contributing 4.3% in

India GDP.

Industry Growth Rate in India GDP came to 7.6% in 2005- 2006. In this year, the mining and quarrying

sector contributed 0.9%, the manufacturing sector contributed 9.0%, and the water supply, gas, and

electricity sector contributed 4.3%. The Growth Rate of the Industrial Sector finally came to 9.8% in

2006- 2007. This shows that Industry Growth Rate in India GDP has been on the rise over the last few

years.

The reasons for the rise of Industry Growth Rate in India GDP

The reasons for the increase of Industry Growth Rate in India GDP are that huge amounts of investments

are being made in this sector and this has helped the industries to grow. Further the reasons for the rise

of the Growth Rate of the Industrial Sector in India are that the consumption of the industrial goods has

increased a great deal in the country, which in its turn has boosted the industrial sector. Also the

reasons for the increase of Industry Growth Rate in India GDP are that the industrial goods are being
exported in huge quantities from the country.

The Indian government must boost the Industrial Sector

Industry Growth Rate in India GDP thus has been registering steady growth over the past few years. This

has given a major boost to the Indian economy. The government of India thus must continue to make

efforts to boost the industrial sector in the country. For this will in turn help to grow the country's

economy.

Industrial Revolution

The Industrial Revolution was a period from the 18th to the 19th century where major changes in

agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social,

economic and cultural conditions of the times. It began in Britain, then subsequently spread throughout

Western Europe, North America, Japan, and eventually the world.

The Industrial Revolution marks a major turning point in human history; almost every aspect of daily life

was influenced in some way. Most notably, average income and population began to exhibit

unprecedented sustained growth. In the two centuries following 1800, the world's average per capita

income increased over tenfold, while the world's population increased over sixfold. In the words of

Nobel Prize winner Robert E. Lucas, Jr., "For the first time in history, the living standards of the masses

of ordinary people have begun to undergo sustained growth ... Nothing remotely like this economic

behavior has happened before".

Starting in the later part of the 18th century, there began a transition in parts of Great Britain's

previously manual labour and draft-animal–based economy towards machine-based manufacturing. It

started with the mechanisation of the textile industries, the development of iron-making techniques and

the increased use of refined coal. Trade expansion was enabled by the introduction of canals, improved

roads and railways.

The introduction of steam power fuelled primarily by coal, wider utilisation of water wheels and

powered machinery (mainly in textile manufacturing) underpinned the dramatic increases in production

capacity. The development of all-metal machine tools in the first two decades of the 19th century

facilitated the manufacture of more production machines for manufacturing in other industries. The

effects spread throughout Western Europe and North America during the 19th century, eventually

affecting most of the world, a process that continues as industrialisation. The impact of this change on

society was enormous.

The First Industrial Revolution, which began in the 18th century, merged into the Second Industrial

Revolution around 1850, when technological and economic progress gained momentum with the

development of steam-powered ships, railways, and later in the 19th century with the internal

combustion engine and electrical power generation. The period of time covered by the Industrial

Revolution varies with different historians. Eric Hobsbawm held that it 'broke out' in Britain in the 1780s

and was not fully felt until the 1830s or 1840s, while T. S. Ashton held that it occurred roughly between

1760 and 1830.

Some 20th century historians such as John Clapham and Nicholas Crafts have argued that the process of

economic and social change took place gradually and the term revolution is a misnomer. This is still a

subject of debate among historians. GDP per capita was broadly stable before the Industrial Revolution

and the emergence of the modern capitalist economy. The Industrial Revolution began an era of per-

capita economic growth in capitalist economies. Economic historians are in agreement that the onset of
the Industrial Revolution is the most important event in the history of humanity since the domestication

of animals and plants.

The earliest use of the term "Industrial Revolution" seems to be a letter of 6 July 1799 by French envoy

Louis-Guillaume Otto, announcing that France had entered the race to industrialize. In his 1976 book

Keywords: A Vocabulary of Culture and Society, Raymond Williams states in the entry for "Industry":

"The idea of a new social order based on major industrial change was clear in Southey and Owen,

between 1811 and 1818, and was implicit as early as Blake in the early 1790s and Wordsworth at the

turn of the century." The term Industrial Revolution applied to technological change was becoming more

common by the late 1830s, as in Louis-Auguste Blanqui description in 1837 of la révolution industrielle.

Friedrich Engels in The Condition of the Working Class in England in 1844 spoke of "an industrial

revolution, a revolution which at the same time changed the whole of civil society". Credit for

popularising the term may be given to Arnold Toynbee, whose lectures given in 1881 gave a detailed

account of it.

Innovations

The only surviving example of a Spinning mule built by the inventor Samuel Crompton

The commencement of the Industrial Revolution is closely linked to a small number of

innovations,[16] made in the second half of the 18th century:

 Textiles – Cotton spinning using Richard Arkwright's water frame, James Hargreaves'sSpinning

Jenny, and Samuel Crompton's Spinning Mule (a combination of the Spinning Jenny and the Water
 Frame). This was patented in 1769 and so came out of patent in 1783. The end of the patent was

rapidly followed by the erection of many cotton mills. Similar technology was subsequently applied

to spinning worsted yarn for various textiles and flax for linen. The cotton revolution began in Derby,

which has been known since this period as the "Powerhouse of the North".

 Steam power – The improved steam engine invented by James Watt and patented in 1775 was

initially mainly used to power pumps for pumping water out of mines, but from the 1780s was

applied to power other types of machines. This enabled rapid development of efficient semi-

automated factories on a previously unimaginable scale in places where waterpower was not

available. For the first time in history people did not have to rely on human or animal muscle, wind

or water for power. The steam engine was used to pump water from coal mines; to lift trucks of coal

to the surface; to blow air into the furnaces for the making of iron; to grind clay for pottery; and to

power new factories of all kinds. For over a hundred years the steam engine was the king of the

industries.

 Iron making – In the Iron industry, coke was finally applied to all stages of iron smelting,

replacing charcoal. This had been achieved much earlier for lead and copper as well as for

producing pig iron in a blast furnace, but the second stage in the production of bar irondepended on

the use of potting and stamping (for which a patent expired in 1786) or puddling (patented by Henry

Cort in 1783 and 1784).

These represent three 'leading sectors', in which there were key innovations, which allowed the

economic take off by which the Industrial Revolution is usually defined. This is not to belittle many other

inventions, particularly in the textile industry. Without some earlier ones, such as the spinning

jenny and flying shuttle in the textile industry and the smelting of pig iron with coke, these

achievements might have been impossible. Later inventions such as the power loom and Richard

Trevithick's high pressure steam engine were also important in the growing industrialisation of Britain.
The application of steam engines to powering cotton mills and ironworks enabled these to be built in

places that were most convenient because other resources were available, rather than where there was

water to power a watermill.

In the textile sector, such mills became the model for the organisation of human labour in factories,

epitomised by Cottonopolis, the name given to the vast collection of cotton mills, factories and

administration offices based in Manchester. The assembly line system greatly improved efficiency, both

in this and other industries. With a series of men trained to do a single task on a product, then having it

moved along to the next worker, the number of finished goods also rose significantly.

Also important was the 1756 rediscovery of concrete (based on hydraulic lime mortar) by the British

engineer John Smeaton, which had been lost for 1300 years.[17]

Technological developments in Britain

In the early 18th century, British textile manufacture was based on wool which was processed by

individual artisans, doing the spinning and weaving on their own premises. This system is called a

cottage industry. Flax and cotton were also used for fine materials, but the processing was difficult

because of the pre-processing needed, and thus goods in these materials made only a small proportion

of the output.

Use of the spinning wheel and hand loom restricted the production capacity of the industry, but

incremental advances increased productivity to the extent that manufactured cotton goods became the

dominant British export by the early decades of the 19th century. India was displaced as the premier

supplier of cotton goods.

Lewis Paul patented the Roller Spinning machine and the flyer-and-bobbin system for drawing wool to a

more even thickness, developed with the help of John Wyatt in Birmingham. Paul and Wyatt opened a

mill in Birmingham which used their new rolling machine powered by a donkey. In 1743, a factory was

opened in Northampton with fifty spindles on each of five of Paul and Wyatt's machines. This operated

until about 1764. A similar mill was built by Daniel Bourn in Leominster, but this burnt down. Both Lewis

Paul and Daniel Bourn patented carding machines in 1748. Using two sets of rollers that travelled at

different speeds, it was later used in the first cotton spinning mill. Lewis's invention was later developed

and improved by Richard Arkwright in his water frame and Samuel Crompton in his spinning mule.

Other inventors increased the efficiency of the individual steps of spinning (carding, twisting and

spinning, and rolling) so that the supply of yarn increased greatly, which fed a weaving industry that was

advancing with improvements to shuttles and the loom or 'frame'. The output of an individual labourer

increased dramatically, with the effect that the new machines were seen as a threat to employment,

and early innovators were attacked and their inventions destroyed.

To capitalise upon these advances, it took a class of entrepreneurs, of which the most famous is Richard

Arkwright. He is credited with a list of inventions, but these were actually developed by people such as

Thomas Highs and John Kay; Arkwright nurtured the inventors, patented the ideas, financed the

initiatives, and protected the machines. He created the cotton mill which brought the production

processes together in a factory, and he developed the use of power—first horse power and then water

power—which made cotton manufacture a mechanised industry. Before long steam power was applied

to drive textile machinery.

Metallurgy

The major change in the metal industries during the era of the Industrial Revolution was the

replacement of organic fuels based on wood with fossil fuel based on coal. Much of this happened

somewhat before the Industrial Revolution, based on innovations by SirClement Clerke and others from

1678, using coalreverberatory furnaces known as cupolas. These were operated by the flames, which

contained carbon monoxide, playing on the ore and reducing the oxide to metal. This has the advantage

that impurities (such as sulphur) in the coal do not migrate into the metal. This technology was applied

to lead from 1678 and tocopper from 1687. It was also applied to iron foundry work in the 1690s, but in

this case the reverberatory furnace was known as an air furnace. The foundry cupola is a different (and

later) innovation.

This was followed by Abraham Darby, who made great strides using coke to fuel his blast

furnaces at Coalbrookdale in 1709. However, the coke pig iron he made was used mostly for the

production of cast iron goods such as pots and kettles. He had the advantage over his rivals in that his

pots, cast by his patented process, were thinner and cheaper than theirs. Coke pig iron was hardly used

to produce bar iron in forges until the mid 1750s, when his son Abraham Darby

II built Horsehay and Ketley furnaces (not far from Coalbrookdale). By then, coke pig iron was cheaper

than charcoal pig iron.

Matthew Boulton helped James Watt to get his business off the ground. he set up a massive factory

called the Soho Factory, in the midlands.

Bar iron for smiths to forge into consumer goods was still made in finery forges, as it long had been.

However, new processes were adopted in the ensuing years. The first is referred to today as potting and

stamping, but this was superseded by Henry Cort's puddling process. From 1785, perhaps because the

improved version of potting and stamping was about to come out of patent, a great expansion in the
output of the British iron industry began. The new processes did not depend on the use of charcoal at all

and were therefore not limited by charcoal sources.

Up to that time, British iron manufacturers had used considerable amounts of imported iron to

supplement native supplies. This came principally from Sweden from the mid-17th century and later

also from Russia from the end of the 1720s. However, from 1785, imports decreased because of the new

iron making technology, and Britain became an exporter of bar iron as well as manufactured wrought

ironconsumer goods.

Since wrought iron was becoming cheaper and more plentiful, it also became a major structural material

following the building of the innovative The Iron Bridge in 1778 by Abraham Darby III.

The Iron Bridge, Shropshire, England

An improvement was made in the production of steel, which was an expensive commodity and used

only where iron would not do, such as for the cutting edge of tools and for springs. Benjamin

Huntsman developed his crucible steel technique in the 1740s. The raw material for this was blister

steel, made by the cementation process.

The supply of cheaper iron and steel aided the development of boilers and steam engines, and

eventually railways. Improvements in machine tools allowed better working of iron and steel and further

boosted the industrial growth of Britain.

Mining

Coal mining in Britain, particularly in South Wales started early. Before the steam engine, pits were

often shallow bell pits following a seam of coal along the surface, which were abandoned as the coal

was extracted. In other cases, if the geology was favourable, the coal was mined by means of an adit or
drift mine driven into the side of a hill. Shaft mining was done in some areas, but the limiting factor was

the problem of removing water. It could be done by hauling buckets of water up the shaft or to a sough

(a tunnel driven into a hill to drain a mine). In either case, the water had to be discharged into a stream

or ditch at a level where it could flow away by gravity. The introduction of the steam engine greatly

facilitated the removal of water and enabled shafts to be made deeper, enabling more coal to be

extracted. These were developments that had begun before the Industrial Revolution, but the adoption

of James Watt's more efficient steam engine from the 1770s reduced the fuel costs of engines, making

mines more profitable. Coal mining was very dangerous owing to the presence of firedamp in many coal

seams. Some degree of safety was provided by the safety lamp which was invented in 1816 by Sir

Humphry Davy and independently by George Stephenson. However, the lamps proved a false dawn

because they became unsafe very quickly and provided a weak light. Firedamp explosions continued,

often setting off coal dust explosions, so casualties grew during the entire 19th century. Conditions of

work were very poor, with a high casualty rate from rock falls.

Steam power

The development of the stationary steam engine was an essential early element of the Industrial

Revolution; however, for most of the period of the Industrial Revolution, the majority of industries still

relied on wind and water power as well as horse- and man-power for driving small machines.

The first real attempt at industrial use of steam power was due to Thomas Savery in 1698. He

constructed and patented in London a low-lift combined vacuum and pressure water pump, that

generated about one horsepower (hp) and was used in numerous water works and tried in a few mines

(hence its "brand name", The Miner's Friend), but it was not a success since it was limited in pumping

height and prone to boiler explosions.

Newcomen's steam powered atmospheric engine was the first practical engine. Subsequent steam

engines were to power the Industrial Revolution

The first safe and successful steam power plant was introduced by Thomas Newcomen before 1712.

Newcomen apparently conceived the Newcomen steam engine quite independently of Savery, but as

the latter had taken out a very wide-ranging patent, Newcomen and his associates were obliged to come

to an arrangement with him, marketing the engine until 1733 under a joint patent. Newcomen's engine

appears to have been based on Papin's experiments carried out 30 years earlier, and employed a piston

and cylinder, one end of which was open to the atmosphere above the piston. Steam just above

atmospheric pressure (all that the boiler could stand) was introduced into the lower half of the cylinder

beneath the piston during the gravity-induced upstroke; the steam was then condensed by a jet of cold

water injected into the steam space to produce a partial vacuum; the pressure differential between the

atmosphere and the vacuum on either side of the piston displaced it downwards into the cylinder,

raising the opposite end of a rocking beam to which was attached a gang of gravity-actuated

reciprocating force pumps housed in the mineshaft. The engine's downward power stroke raised the

pump, priming it and preparing the pumping stroke. At first the phases were controlled by hand, but

within ten years an escapement mechanism had been devised worked by a vertical plug tree suspended

from the rocking beam which rendered the engine self-acting.

A number of Newcomen engines were successfully put to use in Britain for draining hitherto unworkable

deep mines, with the engine on the surface; these were large machines, requiring a lot of capital to

build, and produced about 5 hp (3.7 kW). They were extremely inefficient by modern standards, but

when located where coal was cheap at pit heads, opened up a great expansion in coal mining by

allowing mines to go deeper. Despite their disadvantages, Newcomen engines were reliable and easy to

maintain and continued to be used in the coalfields until the early decades of the 19th century. By 1729,
when Newcomen died, his engines had spread (first) to Hungary in 1722, Germany, Austria, and

Sweden. A total of 110 are known to have been built by 1733 when the joint patent expired, of which 14

were abroad. In the 1770s, the engineer John Smeaton built some very large examples and introduced a

number of improvements. A total of 1,454 engines had been built by 1800.

Chemicals

The large scale production of chemicals was an important development during the Industrial Revolution.

The first of these was the production of sulphuric acid by the lead chamber processinvented by the

Englishman John Roebuck (James Watt's first partner) in 1746. He was able to greatly increase the scale

of the manufacture by replacing the relatively expensive glass vessels formerly used with larger, less

expensive chambers made of riveted sheets of lead. Instead of making a small amount each time, he

was able to make around 100 pounds (50 kg) in each of the chambers, at least a tenfold increase.

The production of an alkali on a large scale became an important goal as well, and Nicolas

Leblanc succeeded in 1791 in introducing a method for the production of sodium carbonate. TheLeblanc

process was a reaction of sulphuric acid with sodium chloride to give sodium sulphate andhydrochloric

acid. The sodium sulphate was heated with limestone (calcium carbonate) and coal to give a mixture

of sodium carbonate and calcium sulphide. Adding water separated the soluble sodium carbonate from

the calcium sulphide. The process produced a large amount of pollution (the hydrochloric acid was

initially vented to the air, and calcium sulphide was a useless waste product). Nonetheless, this

synthetic soda ash proved economical compared to that from burning specific plants (barilla) or

from kelp, which were the previously dominant sources of soda ash,[22] and also to potash (potassium

carbonate) derived from hardwood ashes.

These two chemicals were very important because they enabled the introduction of a host of other

inventions, replacing many small-scale operations with more cost-effective and controllable processes.

Sodium carbonate had many uses in the glass, textile, soap, and paper industries. Early uses for

sulphuric acid included pickling (removing rust) iron and steel, and for bleaching cloth.

The development of bleaching powder (calcium hypochlorite) by Scottish chemist Charles Tennant in

about 1800, based on the discoveries of French chemist Claude Louis Berthollet, revolutionised the

bleaching processes in the textile industry by dramatically reducing the time required (from months to

days) for the traditional process then in use, which required repeated exposure to the sun in bleach

fields after soaking the textiles with alkali or sour milk. Tennant's factory at St Rollox, North Glasgow,

became the largest chemical plant in the world.

In 1824 Joseph Aspdin, a British bricklayer turned builder, patented a chemical process for

making portland cement which was an important advance in the building trades. This process

involves sintering a mixture of clay and limestone to about 1,400 °C (2,552 °F), then grinding it into a fine

powder which is then mixed with water, sand and gravel to produce concrete. Portland cement was

used by the famous English engineer Marc Isambard Brunel several years later when constructing

the Thames Tunnel Cement was used on a large scale in the construction of the London sewerage

system a generation later.

After 1860 the focus on chemical innovation was in dyestuffs, and Germany took world leadership,

building a strong chemical industry A spring chemists flocked to German universities in the 1860-1914

era to learn the latest techniques. British scientists by contrast, lacked research universities and did not

train advanced students; instead the practice was to hire German-trained chemists
Gas lighting

Another major industry of the later Industrial Revolution was gas lighting. Though others made a

similar innovation elsewhere, the large scale introduction of this was the work of William Murdoch, an

employee of Boulton and Watt, the Birmingham steam engine pioneers. The process consisted of the

large scale gasification of coal in furnaces, the purification of the gas (removal of sulphur, ammonia, and

heavy hydrocarbons), and its storage and distribution. The first gas lighting utilities were established in

London between 1812-20. They soon became one of the major consumers of coal in the UK. Gas

lighting had an impact on social and industrial organisation because it allowed factories and stores to

remain open longer than with tallow candles or oil. Its introduction allowed night life to flourish in cities

and towns as interiors and streets could be lighted on a larger scale than before.

Industrial Growth in India

The latest data for Index of Industrial Production (IIP) has been released for the month of October 2008.

It shows that industrial growth in India has turned negative for the first time since 1993. According to

figures of IIP, the overall growth rate of industrial production as measured by the IIP has been -0.4% in

the month of October 2008 as compared with that of October 2007.

The detailed data for the IIP is given in the following table:

Growth Rate of Industrial Production over the corresponding period of the previous year
 Month Mining Manufacturing Electricity General

2007- 2007- 2008-

2007-08 2008-09 2007-08 2008-09 08 2008-09 08 09

October 5.1 2.8 13.8 -1.2 4.2 4.4 12.2 -0.4

Apr-Oct 4.9 3.7 10.6 4.2 7.2 2.8 9.9 4.1

Source: Press Note -: Quick Estimates of Index of Industrial Production and Use-based Index (Base 1993-

94=100) for the month of October, 2008. Available at: http://pib.nic.in/release/release.asp?relid=45554

From the above table it is seen that the growth rate of the overall index declined from a high value of

12.2% in October 2007 to a negative -0.4% in October 2008. If we compare the growth rates of April-

October 2007 and that of 2008 we see that the growth rate declined from 9.9% in 2007 to 4.1% in 2008.

In September 2008, this growth rate was 4.8%. (Source: http://mospi.nic.in/mospi_iip.htm). This

massive decline in the growth rate of the overall industrial index is driven mainly by a drastic fall in the

growth rate of the manufacturing sector.

It is seen from the above table that the growth rate of Manufacturing registered the maximum fall,

whereby it declined from 13.8% in October 2007 to a negative -1.2% in October 2008. On the other

hand, the growth rate of manufacturing declined to 4.1% in April-October 2008 as compared to 9.9% in

the same period in the previous year. The growth rate of manufacturing in September 2008 was 4.8%.

(Source:http://mospi.nic.in/mospi_iip.htm). Manufacturing sector’s weight in the overall industrial index

is close to 80%. Therefore, it is obvious that such large fall in the growth rate of the manufacturing

sector has resulted in a negative growth rate for the overall IIP.

As far as mining is concerned, it is seen that the growth rate declined from 5.1% to 2.8%, while there has

been a minor increase in the growth rate of electricity production from 4.2% to 4.4%.

Let us also look into the growth rate of the 6 core infrastructure companies, whose figures have also

been released. This is shown in the following table:

Index of six core sector industries - October 2008

Sector Weight Oct ’07 Oct ’08 Apr-Oct Apr-Oct

(%) % % ’07-’08 ’08-’09

in IIP growth growth % growth % growth

Crude 4.17 -0.1 -0.3 0.6 -0.7

Petroleum

Refinery 2.00 2.7 5 8.8 4.5

Products

Coal 3.22 8.9 10.9 3.7 8.4

Electricity 10.17 4.2 4.4 7.1 2.8

Cement 1.99 7.5 6.2 8.5 6.0

Finished Steel 5.13 5.2 -0.5 7.3 4.2

(carbon)
Overall 26.7 4.6 3.4 6.6 3.9

Source: Infra Growth Dips to 3.4% in October, Business Standard, 12

December 2008

From the above figure it is clear that the overall growth rate of the infrastructure industries declined

from 4.6% in October 2007 to 3.4% in October 2008. There was a massive decline in the growth rate of

steel production from 5.2% to a negative growth of -0.5%. It is seen that the growth rate of cement

production also declined from 7.5% to 6.2% in the same period.

The above two tables show that there has been very significant slowdown in the industrial sector

growth rate in India, which is almost spread across the board. In order to understand the nature of this

decline in the growth rate of industrial production, let us first look at the Use-Based categorization of

the IIP figures. This is shown in the following table:

Source: Press Note -: Quick Estimates of Index of Industrial Production and Use-based Index (Base 1993-

94=100) for the month of October, 2008.

From above table it is seen that all categories of industries witnessed decline in their growth rates in

October 2008 as compared to October 2007. The most noteworthy aspect is the fact that there has been

a drastic decline in the growth rate of capital goods industries, which declined from a very high figure of

20.9% in October 2007 to a low figure of 3.1% in October 2008. if we consider the intermediate

industries, then also a similar picture emerges, where the growth rate declined from 13.9% ion October

2007 to a negative growth rate of -3.7% in October 2008. Similar is the story of the consumer goods

industries, where the growth rate declined from 13.7% in October 2007 to -2.3% in October 2008.

Within the consumer goods sector, the growth rates of both consumer durables as well as non-durables

turned negative in October 2008, while both these growth rates were quite high in October 2007.

The question is what explains this overall slow down in the growth rate of industrial production in India.

Firstly, it must be remembered that the Indian economy has been adversely affected by the global

financial crisis. It has been the case that as a result of the global economic crisis, there has been a crisis

of credit even in the Indian economy. As a result, banks have become more stringent in giving loans to

individuals or companies to meet their consumption or investment needs. This has adversely affected

the investment decisions of firms and companies. As a result we are witnessing that the growth rate of

production of capital goods industry has declined sharply in the country. Capital goods production

essentially depends on the investment decisions of firms. In a situation where the overall economic

scene is positive,firms increase their investments which get reflected in an increase in the production of

capital goods. By the same logic, a sharp decline in the production of capital goods essentially shows

that firms are less than forthcoming in taking up new investments.

Why have firms become reluctant in taking investment decisions? One reason for firms’ reluctance to

make investments has been already mentioned in the previous paragraph which is in terms of higher

interest rates on loans. There is however an additional reason for this reluctance, which is the following.

Investment decisions of firms are based upon expectations of the future which in turn is formed on the
basis of the demand performance at the present. If at present, there is a drop in demand, then for the

firms this will manifest itself as an increase in their unutilized capacity and/or a build up of

their inventories.In this case, the firms perceive that their earlier investment decisions were

overestimates, since there exist unutilized capacities and therefore they cut back on investment

decisions. To some extent this is currently happening in the Indian economy. We have seen how big

firms like TATA Motors or Ashok Leyland closed down their units for some days or JSW steel cutting

production and so on and so forth. This is nothing but a manifestation of a demand problem, which is

reflected in the fact that the growth rate of the consumer goods sector has turned negative in October

2008 from a very high level in October 2007 as has been shown in the above table.

Now, the question is what accounts for the fall in the demand in the Indianeconomy,which is reflected

in the drastic fall in the growth rate of consumer goods. It must first be noted that the demand in the

Indian economy which has led the good growth performance of the last few years is very narrowly

based. It stems mainly from the demand of the rich and the middle class based upon easy loans made

available to them by banks. Now, with the global financial crisis hitting India, the banks stopped giving

easy loans which has resulted in the decline in demand for consumer goods, particularly consumer

durables in India. At the same time, with massive poverty existing, particularly in the Indian countryside,

there is very little demand that this segment of the population generates. Therefore, what is needed is a

plan of action which tries to put more purchasing power in the hands of the poor, whose demand can

then increase the overall demand base in the economy and lead India towards a sustained demand led

growth.

On the other hand it has also been the case that in the fact of global recession, particularly in

the USA, India’s exports have also been badly hit. In fact the export growth in October 2008 has been

negative, the lowest in many years. So, the external demand for Indian industrial output has also not

been strong enough.

It can however be argued that since the demand in India was largely based on the consumption of the

rich and middle class on the basis of soft loans, what is essential is interest cuts, which will then

automatically increase the demand in the economy. This however is not necessarily the case. The

present crisis is a crisis of confidence, where even with low interest rates, banks might just refuse to

lend to any borrowers other than the truly credit worthy one. On the other hand, given the uncertainties

in the market, the borrowers are also less than willing to take such loans. In other words, only an

injection of liquidity in the market may not solve the problem, since people may just hold on to the

excess liquidity without creating any demand, a case which Keynes called the liquidity trap. The current

world as well as the Indian economic situation is akin to this phenomenon. (See, ‘In Search of a real

Stimulus’, Jayati Ghosh, Another argument can be made at this point which is the following. Even if it is

granted that by a mere reduction of interest rates will not solve the problem,the current stimulus

package announced by the Government will take care of the problem which talks about an additional

fiscal stimulus and also tax cuts in the form of a cut in excise duties. Firstly, it needs to be pointed out

that the fiscal expenditure of Rs 20,000crores planned by the Government is only 0.5% of

the IndianGDP and is grossly inadequate to quell the crisis. Secondly, the tax cuts in terms of cuts in

excise duties will increase demand only if they are passed on to the consumers through a price cut.

More importantly, however such cuts in the excise duties is aimed at only a short term solution of giving

rise to a demand bubble based on lower prices. But it completely ignores the aspect of increasing the

purchasing power of the poor by direct intervention of the state in funding the Public Distribution

System, expenditure in rural areas etc. In short the current stimulus package is inadequate to meet the

serious problem that the economy is in right now.

Data Analysis & Interpretation:

Questionnaire:-

1. Do you think the organization is quality conscious toward employees?

Response Respondents Percentage

Yes 147 73.5

No 53 26.5

Total 200 100

Respondents
147

53

yes no
Interpretation:-the above analysis is showing organization is quality conscious toward

employees are 147 are yes and 53 employees say no.

 2. Does the organization have the certification of ISO 9000?

Response Respondents Percentage

yes 18 9

no 182 91

Total 200 100

Respondents
182

18

yes no

Interpretation :- the above analyses about the organization have the certification of ISO 9000

9% are say positive and 91% are say negative.

 3. Is the organization providing quality assurance system & operation?

Response Respondents Percentage

YES 168 84

NO 32 16

Total 200 100

persantage

NO
16%

YES
84%

Interpretation :- the above analyses about the organization providing quality assurance system

& operation 84% are say yes and 16% are say no.
 4. Does the organization have quality circle?

Response Respondents Percentage

YES 125 62.5

NO 75 37.5

Total 200 100

Percentage

62.5

37.5

YES NO

Interpretation:- the above analysis are showing organization have quality circle 62% are aware

of that ,37% are not aware of that .

 5. How many people are involved in quality circle?

Response Respondents Percentage

Below 10 83 41.5

above 10 15 7.5

above 15 11 5.5

can’t say 91 45.5

Total 200 100

Respondents
100
90
80
70
60
50
Respondents
40
30
20
10
0
Below 10 above 10 above 15 can’t say
Interpretation:-the above chart showing 41% are maintain below 10 employees are in quality

circle . 45% are can’t say any thing

 6. How frequently the organizations have the meeting of quality circle?

Response Respondents Percentage

Weekly 14 7

biweekly 25 12.5

monthly 79 39.5

yearly 82 41

Total 200 100

Percentage
41
39.5

12.5

Weekly biweekly monthly yearly

Interpretation:- the employees are frequently the organizations have the meeting of quality

circle 75 are weekly , 12.5% are biweekly ,39% are monthly, 41% are yearly in the total 200

members
 7. Do you know about the agenda of information or any other information?

Response Respondents Percentage

Yes 138 69

No 62 31

Total 200 100

Respondents
138

62

Yes No
Interpretation:-the above chart showing 69% are says yes know about the agenda of

information or any other information 31% no idea about the information

8. Are the organization is going for the quality audit?

Response Respondents Percentage

YES 155 77.5

NO 45 22.5

can’t say 68 34

Total 200 100

 Percentage
77.5

34

22.5

YES NO can’t say

Interpretation:-77% no idea about the organization is going for the quality audit, 22% no idea

about quality audit 34% are can’t say anything.

 9. Does your organization have quality information system?

Response Respondents Percentage

YES 116 58

NO 72 36

can’t say 12 6

Total 200 100

can’t say
6% Percentage

NO
36%
YES
58%

Interpretation:-that above survey about the organization has quality information system 58%

told yes 36% say no 6% are not say anything about the quality information system.
 10.Are the information system is regularly updated?

Response Respondents Percentage

YES 82 41

NO 73 36.5

can’t say 45 22.5

Total 200 100

Percentage
Percentage

41
36.5

22.5

YES NO can’t say

Interpretation:- the above analysis about the information system is regularly updated 41% say

yes 36% are say no about the pupation about he information.

 11.Do you think the organization used bench marking?

YES NO Can’t say

Option Resp %

Yes 150 75%

No 20 10%

Can't Say 30 15%

Total 200 100%

160
140
75%
120
100
Series2
80 150 Series1
60
40
20 10% 15%
30
20
0
Yes No Can't Say

75% of the respondents shared their view that

CHAPTERIV

CONCLUSIONS AND RECOMMENDATIONS

1. Total Quality Management plays important role for focusing improvement of quality

system and involvement of all people in the organization on continual basis

2. It is the basis for improve the quality characteristics both internal and external

customers. By implementing the TQM customer satisfaction has been improved and

paying way for implementation of ISO 9000 System in the organization.

3. Business process improved four fold after implementation of TQM

4. Rejection level is reduced by 40 to 60 % after implementing TQM

5. By forming the quality circles, employees are delighted for the ideas they are generated

and satisfaction of recognisation of the employees in decision making process for

improving the quality

6. Customers complaints has been reduced by 40%

7. Implementation of statistical tools in the shop floor quality has been improved by 60 to

70% and rework is reduced

8. Company has improved the exports orders after implementing the TQM

9. Shop floor utilization has improved substantially

 bliography

1. Anderson J., Rungtusanatham M., Schroeder, R., 1994. A Theory of Quality Management

underlying the Deming Management Method. The Academy of Management Review.

Vol. 19, No. 3,

2. Business Week, 1992. Quality: Small and midsize companies seize the challenge - not a

moment too soon. November, 66-75

3. Crosby P., 1979. Quality is Free: The Art of Making Quality Certain. McGraw-Hill.

4. Deming, E.W., 1986. Out of crisis. Cambridge University Press. MGrant, R.M., Shani R.,

Krishnan R. 1994. TQM's challenge to management theory and practice. Sloan

Management Review. Vol. 35, No. 2, 25-35assachusetts, USA.

5. ISO 9000:2000: SFS-EN ISO 9000 collection of quality management standards

(Fundamentals and vocabulary, Requirements and Guidelines for performance

improvements). Finnish standards Association. Helsinki

6. Juran J.M., 1974. The Quality Control Handbook, 3rd edition. McGraw-Hill. New York.

7. Powell, T., 1995. Total Quality Management as Competitive Advantage: a Review and

empirical study. Strategic Management Journal, Vol. 16, 15-37.

Questionaire:-

1. Do you think the organization is quality conscious toward employees?

YES NO

2. Does the organization have the certification of ISO 9000?

a. YES NO
3. Is the organization providing quality assurance system & operation?

a. YES NO

4. Does the organization have quality circle?

a. YES NO

5. How many people are involved in quality circle?

a. Below 10 above 10 above 15 can’t say

6. How frequently the organizations have the meeting of quality circle?

a. Weekly biweekly monthly yearly

7. Do you about the agenda of information or any other information?

a. YES NO

8. Are the organization is going for the quality audit?

a. YES NO Can’t say

9. Does your organization have quality information system?

a. YES NO can’t say

10. Are the information system is regularly updated?

a. YES NO can’t say

11. Do you think the organization used bench marking ?

i. YES NO can’t say