BSH Sip Prefinal PDF

Total quality management practices and its effects on AIRTECH PVT LTD
Executive Summary:
During the recent years the world of business has changed vastly. We the people of different
walks of life cannot be able to imagine that what is going to be the future picture if this change
continues at this speed. Today there are very much competition in-between them and for that
reason each and every business organization are trying to offer competitively better facilities for
their customers compared to their competitors.
Every nation has its own independent historical and cultural background. The quality scenario,
therefore, differs from one national setting to the other. The nations are orienting their quality
management strategies and systems to meet the requirements of the operating environment
though the primary focus remains the same, that is, Total Customer Satisfaction .Many of the
present techniques of quality management were developed in Japan. However, U.S.A., European
nations and developing nations have also contributed significantly to this development. The
studies carried out by researchers in different national settings reveal that the concept and
philosophies of TQM are not understood by the managers and others. An all out effort, therefore
is required to promote the understanding by launching massive educational and management
development programs at all levels so as to create a cultural consciousness towards quality.
TQM is not undimensional approach but is multifaceted in nature. Understanding these facets is
essential to promote a successful quality improvement program. An integrated approach on all
vital components of TQM is required to achieve the desired goal.
Total quality management is wide concept which has gained rapid importance over the years due
to its benefits and new concepts being developed over the years by different quality gurus. In
today’s competitive world where every organization has started focusing on their quality
development, for reducing their costs of production and also the wastage in production. Total
quality management has many principles, Statistical tools, concepts, techniques for
implementation and as well as its effects on organization. How it is going to help the medium
scale manufacturing industries to gain the ISO certifications. How different tools and techniques
of TQM can help Airtech industry to solve their problems related to quality in production as well
as in other departments.
Kousali Institute of Management Studies, Karnatak university, Dharwad 1

This project includes the information about the tools and techniques of TQM used in industry;
the organization, the theoretical and practical concepts of TQM relating to the applications in
manufacturing industries, along with the data analysis of manufacturing of products and
interpretation of the study done in two-months. Today’s competitive world where every
organizations weather it is manufacturing or Service industry is main focus is to satisfying the
customers by providing quality products or Service In order to understand we have done study
of how different type of control charts can be used for solving real production problems and cost
analysis. This project main focus is to reduce the cost and wastage in Airtech Pvt Ltd and how
TQM concepts can help the medium scale industries to overcome the problems in all
departments by implementing the total quality management concept and also at all levels of
management in the organization.
Study is undertaken to find out the objectives mentioned in the report. Data collection involved
secondary sources. From machines of different product manufacturing, some machines were
selected among all of them for the purpose of study. And the analysis was done for certain
machines which were facing real problems in production as a part of quality, to reduce wastage,
to understand the application of TQM concepts in practical way and to increase the profit for
the organization.
The result was analyzed and interpreted with the help of Microsoft Excel. Findings and
suggestions are made to conclude the project. The project is an attempt to understand the
theoretical concept of Total quality management with that of practical applicability of the
knowledge in the organization.

Chapter-1
Introduction

1.2 Statement of the problem:

Although manufacturing industry has implemented total quality management from long time,
but what are the techniques used and implemented in the medium scale manufacturing industry,
how TQM concepts have helped the Airtech Pvt Ltd to reduce their costs, wastages .Also to
produce defect free quality products to satisfy their customers. To study the effects of TQM
implementation on company’s performance in economic terms
1.3 Significance of the study:

 The significant of the study lies in understanding of the total quality management
concepts in medium scale manufacturing industry.
 The study is an attempt to assess how total quality management tools and techniques are
practically practiced and helps in overcoming production problems.
 The study also helps to signify the scope of the total quality management control charts
analysis finds application in the near future for solving quality problems.
 It helps the company Airtech Pvt Ltd to improve the application further and practice new
concepts of Total quality management in future.

1.4. Introduction to Total quality management:
Total Quality Management is an approach to the art of management that originated in Japanese
industry in the 1950's and has become steadily more popular in the West since the early
1980's. Total Quality is a description of the culture, attitude and organization of a company that
aims to provide, and continue to provide, its customers with products and services that satisfy
their needs. The culture requires quality in all aspects of the company's operations, with things
being done right first time, and defects and waste eradicated from operations.
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. Many
companies have difficulties in implementing TQM. Surveys by consulting firms have found that
only 20-36% of companies that have undertaken TQM have achieved either significant or even
tangible improvements in quality, productivity, competitiveness or financial return. As a result
many people are sceptical about TQM. However, when you look at successful companies you
find a much higher percentage of successful TQM implementation.
Some useful messages from results of TQM implementations:
 If you want to be a first-rate company, don't focus on the second-rate companies who
can't handle TQM, look at the world-class companies that have adopted it.
 The most effective way to spend TQM introduction funds is by training top management,
people involved in new product development, and people involved with customers.
 It's much easier to introduce EDM/PDM in a company with a TQM culture than in one
without TQM. People in companies that have implemented TQM are more likely to have
the basic understanding necessary for implementing EDM/PDM. For example, they are
more likely to view EDM/PDM as an information and workflow management system
supporting the entire product life cycle then as a departmental solution for the
management of CAD data.

1.4 a. Aspects of TQM:
a) Customer-driven quality,
b) Top management leadership and commitment,
c) Continuous improvement,
d) Fast response,
e) Actions based on facts,
f) Employee participation and a TQM culture.
a) Customer-driven quality
TQM has a customer-first orientation. The customer, not internal activities and constraints,
comes first. Customer satisfaction is seen as the company's highest priority. The company
believes it will only be successful if customers are satisfied. The TQM Company is sensitive to
customer requirements and responds rapidly to them. In the TQM context, `being sensitive to
customer requirements' goes beyond defect and error reduction, and merely meeting
specifications or reducing customer complaints. The concept of requirements is expanded to take
in not only product and service attributes that meet basic requirements, but also those that
enhance and differentiate them for competitive advantage. Each part of the company is involved
in Total Quality, operating as a customer to some functions and as a supplier to others. The
Engineering Department is a supplier to downstream functions such as Manufacturing and Field
Service, and has to treat these internal customers with the same sensitivity and responsiveness as
it would external customers.
b) TQM leadership from top management
TQM is a way of life for a company. It has to be introduced and led by top management. This is
a key point. Attempts to implement TQM often fail because top management doesn't lead and get
committed - instead it delegates and pays lip service. Commitment and personal involvement is
required from top management in creating and deploying clear quality values and goals
consistent with the objectives of the company, and in creating and deploying well defined
systems, methods and performance measures for achieving those goals.These systems and
methods guide all quality activities and encourage participation by all employees. The

development and use of performance indicators is linked, directly or indirectly, to customer

requirements and satisfaction, and to management and employee remuneration.
c) Continuous improvement
Continuous improvement of all operations and activities is at the heart of TQM. Once it is
recognized that customer satisfaction can only be obtained by providing a high-quality product,
continuous improvement of the quality of the product is seen as the only way to maintain a high
level of customer satisfaction. As well as recognizing the link between product quality and
customer satisfaction, TQM also recognizes that product quality is the result of process quality.
As a result, there is a focus on continuous improvement of the company's processes. This will
lead to an improvement in process quality. In turn this will lead to an improvement in product
quality, and to an increase in customer satisfaction. Improvement cycles are encouraged for all
the company's activities such as product development, use of EDM/PDM, and the way customer
relationships are managed. This implies that all activities include measurement and monitoring
of cycle time and responsiveness as a basis for seeking opportunities for
improvement. Elimination of waste is a major component of the continuous improvement
approach. There is also a strong emphasis on prevention rather than detection, and an emphasis
on quality at the design stage. The customer-driven approach helps to prevent errors and achieve
defect-free production. When problems do occur within the product development process, they
are generally discovered and resolved before they can get to the next internal customer.
d) Fast response
To achieve customer satisfaction, the company has to respond rapidly to customer needs. This
implies short product and service introduction cycles. These can be achieved with customer-
driven and process-oriented product development because the resulting simplicity and efficiency
greatly reduce the time involved. Simplicity is gained through concurrent product and process
development. Efficiencies are realized from the elimination of non-value-adding effort such as
re-design. The result is a dramatic improvement in the elapsed time from product concept to first
shipment.

e) Actions based on facts
The statistical analysis of engineering and manufacturing facts is an important part of TQM.
Facts and analysis provide the basis for planning, review and performance tracking,
improvement of operations, and comparison of performance with competitors. The TQM
approach is based on the use of objective data, and provides a rational rather than an emotional
basis for decision making. The statistical approach to process management in both engineering
and manufacturing recognizes that most problems are system-related, and are not caused by
particular employees. In practice, data is collected and put in the hands of the people who are in
the best position to analyze it and then take the appropriate action to reduce costs and prevent
non-conformance. Usually these people are not managers but workers in the process. If the right
information is not available, then the analysis, whether it be of shop floor data, or engineering
test results, can't take place, errors can't be identified, and so errors can't be corrected.
f) Employee participation and A TQM culture
A successful TQM environment requires a committed and well-trained work force that
participates fully in quality improvement activities. Such participation is reinforced by reward
and recognition systems which emphasize the achievement of quality objectives. On-going
education and training of all employees supports the drive for quality. Employees are encouraged
to take more responsibility, communicate more effectively, act creatively, and innovate. As
people behave the way they are measured and remunerated, TQM links remuneration to
customer satisfaction metrics. It's not easy to introduce TQM. An open, cooperative culture has
to be created by management. Employees have to be made to feel that they are responsible for
customer satisfaction. They are not going to feel this if they are excluded from the development
of visions, strategies, and plans. It's important they participate in these activities. They are
unlikely to behave in a responsible way if they see management behaving irresponsibly - saying
one thing and doing the opposite.

g) Product development in a TQM environment
Product development in a TQM environment is very different to product development in a non-

TQM environment. Without a TQM approach, product development is usually carried on in a
conflictual atmosphere where each department acts independently. Short-term results drive
behaviour so scrap, changes, work-around, waste, and rework are normal practice. Management
focuses on supervising individuals, and fire-fighting is necessary and rewarded. Product
development in a TQM environment is customer-driven and focused on quality. Teams are
process-oriented, and interact with their internal customers to deliver the required results.
Management's focus is on controlling the overall process, and rewarding teamwork.
h) Awards for Quality achievement
The Deming Prize has been awarded annually since 1951 by the Japanese Union of Scientists
and Engineers in recognition of outstanding achievement in quality strategy, management and
execution. Since 1988 a similar award (the Malcolm Baldrige National Quality Award) has been
awarded in the US.
Early winners of the Baldrige Award include following organizations listed below
1. AT&T (1992)
2. IBM (1990)
3. Milliken (1989)
4. Motorola (1988)
5. Texas Instrument (1992)

List of Deming prize winners from the 1951 to 2017
SI.NO Year Name of Organization
1 1951 Fuji Iron & Steel Co., Ltd. (now part of Nippon Steel)
2 1951 Showa Denko K.K.
3 1951 Tanabe Seiyaku Co., Ltd
4 1951 Yawata Iron & Steel Co., Ltd (now part of Nippon Steel)
5 1958 Kaneka Corporation
6 1961 Denso Japan
7 1965 Toyota Motor Corporation
8 1976 Pentel Co., Ltd
9 1989 Florida Power & Light (first non-Japanese winner of award)
10 1994 Lucent Technologies, Power Systems (first American
manufacturer to win award
11 1998 Sundaram Clayton brakes division
12 2002 TVS Motor Company (TVSMC)[5]
13 2003 Mahindra & Mahindra Ltd., the world's first tractor company to
win.[6]
14 2003 Rane Brake Lining Ltd.
15 2003 Sona Koyo Steering Systems Ltd
16 2004 Indo Gulf Fertilisers Ltd.
17 2004 LUCAS TVS
18 2004 SRF LTD

19 2005 Rane Engine Valve Ltd
20 2005 Rane TRW Steering Systems Ltd.(SGD
21 2005 Krishna Maruti Ltd., Seat Division
22 2006 Sanden International
23 2007 Rane(Madras) Ltd
24 2008 Tata Steel
25 2010 National engineering instruments Ltd
26 2011 Sanden Vikas(India) Ltd
27 2012 SRF Ltd
28 2012 Mahindra and Mahindra Farm Equipments sector
29 2013 RSB Transmission
30 2014 GC America
31 2014 Yaskawa
32 2014 Mahindra Powerol
33 2016 Ashok Leyland, Pantanagr
34 2017 Ashok Leyland, Hosur
35 2017 CEAT LTD
Table.1.1.list of Deming award winners

1.5. Literature review
(Jun & Cai, 2010)
The interference of quality management practices has brought excellent impact on the rampant
organizational endeavours. Previous researches have indicated that when quality management
practices are applied, positive effects within the organizational networking can attest to its
establishment. Quality management is any practice that produces better products while
decreasing cost and increasing consumer satisfaction levels. Customer satisfaction is usually
defined as post purchase of product comparison in between performance expected and
expectation before purchase .Globally, manufacturing firms apply quality management practices
mainly for meeting customer’s satisfaction.
The expected results of quality management are better organizational performance, enhanced
productivity, efficient processes and competitive goods and services that satisfy the consumer
and enhance the organizational competiveness. Organizational performance stands out as the
most critical variable in the administration look into and without a doubt the most imperative
pointer of hierarchical achievement. The primary condition that is important to enhance and
accomplish perfection in business is creating and executing a framework for measuring
performance of the association. As indicated by Robert Kaplan (2003), "Every association must
make and impart approaches to gauge execution to mirror its special methodology. The prompt
part of execution estimation is to check the association's advance in accomplishing its objectives.
Another essential part of an execution estimation framework is to inform people the angles that
are critical for achievement and distinguishing the areas that need change.
(Hoyle, 2007)
Quality management has gained prominence in the recent past as it directly impacts on the
overall performance of manufacturing organizations. Quality has been noted to affect the whole
organization and comes with a dramatic cost implication. Poor quality becomes a big problem
when it leads to dissatisfied customers and eventually leads to loss of customers. The building
blocks of TQM: processes, people, management systems and performance measurement

.Everything we do is a Process, which is the transformation of a set of inputs, which can include
action, methods and operations, into the desired outputs, which satisfy the customers’ needs and
expectations. In each area or function within an organisation there will be many processes taking
place, and each can be analysed by an examination of the inputs and outputs to determine the
action necessary to improve quality. In every organisation there are some very large processes,
which are groups of smaller processes, called key or core business processes. These must be
carried out well if an organisation is to achieve its mission and objectives. The section on
Processes discusses processes and how to improve them, and Implementation covers how to
prioritise and select the right process for improvement. The only point at which true
responsibility for performance and quality can lie is with the People who actually do the job or
carry out the process, each of which has one or several suppliers and customers. An efficient and
effective way to tackle process or quality improvement is through teamwork. However, people
will not engage in improvement activities without commitment and recognition from the
organisation’s leaders, a climate for improvement and a strategy that is implemented. Once the
strategic direction for the organisation’s quality journey has been set, it needs Performance
Measures to monitor and control the journey, and to ensure the desired level of performance is
being achieved and sustained. They can, and should be, established at all levels in the
organisation, ideally being cascaded down and most effectively undertaken as team activities and
this is discussed in the section on Performance.
Total Quality Management is an approach to the art of management that originated in Japanese
industry in the 1950's and has become steadily more popular in the West since the early 1980's.
Total Quality is a description of the culture, attitude and organization of a company that aims to
provide, and continue to provide, its customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations, with things being
done right first time, and defects and waste eradicated from operations.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 organisation doing the right things right, first time. Many companies have
difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of

companies that have undertaken TQM have achieved either significant or even tangible
improvements in quality, productivity, competitiveness or financial return. As a result many
people are sceptical about TQM. However, when you look at successful companies you find a
much higher percentage of successful TQM implementation. 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 organisation, in the same way that the. Japanese
achieve this with companywide quality control.
Customers and suppliers
There exist in each department, each office, and 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 organisation 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. To achieve quality throughout an organisation, every person in the quality chain must be
trained to ask the following. Questions about every customer-supplier interface:
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?
As well as being fully aware of customer’s needs and expectations, each person must respect the
needs and expectations of their suppliers. The ideal situation is an open partnership style
relationship, where both parties share and benefit.
Poor practices To be able to become a total quality organisation, some of the bad practices
must be recognised and corrected.
These may include:
 Leaders not giving clear direction

 Not understanding, or ignoring competitive positioning
 Each department working only for itself
 Trying to control people through systems
 Confusing quality with grade
 Accepting that a level of defects or errors is inevitable
 Fire fighting, reactive behaviour
 The It’s not my problem attitude

The essential components of TQM – commitment & leadership
TQM is an approach to improving the competitiveness, effectiveness and flexibility of an

organisation for the benefit of all stakeholders. It is a way of planning, organising and
understanding each activity, and of removing all the wasted effort and energy that is routinely
spent in organisations. It ensures the leaders adopt a strategic overview of quality and focus on
prevention not detection of problems. Whilst it must involve everyone, to be successful, it must
start at the top with the leaders of the organisation. All senior managers must demonstrate their
seriousness and commitment to quality, and middle managers must, as well as demonstrating
their commitment, ensure they communicate the principles, strategies and benefits to the people
for whom they have responsibility. Only then will the right attitudes spread throughout the
organisation. A fundamental requirement is a sound quality policy, supported by plans and
facilities to implement it. Leaders must take responsibility for preparing, reviewing and
monitoring the policy, plus take part in regular improvements of it and ensure it is understood at
all levels of the organisation. Effective leadership starts with the development of a mission
statement, followed by a strategy, which is translated into action plans down through the
organisation. These, combined with a TQM approach, should result in a quality organisation,
with satisfied customers and good business results.
The 5 requirements for effective leadership are:
 Developing and publishing corporate beliefs, values and objectives, often as a mission
statement.
 Personal involvement and acting as role models for a culture of total quality.
 Developing clear and effective strategies and supporting plans for achieving the mission and
objectives.
 Reviewing and improving the management system
 Communicating, motivating and supporting people and encouraging effective employee
participation.

The task of implementing TQM can be daunting. The following is a list of points that leaders
should consider; they are a distillation of the various beliefs of some of the quality gurus:
 The organisation needs a long-term commitment to continuous improvement.

 Adopt the philosophy of zero errors/defects to change the culture to right first time.
 Train people to understand the customer/supplier relationships.
 Do not buy products or services on price alone – look at the total cost.
 Recognise that improvement of the systems must be managed 20.
 Adopt modern methods of supervising and training – eliminate fear.
 Eliminate barriers between departments by managing the process – improve
communications and teamwork.
 Eliminate goals without methods, standards based only on numbers, barriers to pride of
workmanship and fiction – get facts by studying processes.
 Constantly educate and retrain – develop experts in the organisation.
 Develop a systematic approach to manage the implementation of TQM.
Culture change
The failure to address the culture of an organisation is frequently the reason for many
management initiatives either having limited success or failing altogether. Understanding the
culture of an organisation, and using that knowledge to successfully map the steps needed to
accomplish a successful change, is an important part of the quality journey. The culture in any
organisation is formed by the beliefs, behaviours, norms, dominant values, rules and the
―climate‖. A culture change, e.g., from one of acceptance of a certain level of errors or defects to
one of right first time, every time, needs two key elements:
 Commitment from the leaders & Involvement of all of the organisation’s people.
There is widespread recognition that major change initiatives will not be successful without a
culture of good teamwork and cooperation at all levels in an organisation, as discussed in the
section on People.

The building blocks of TQM: processes, people, management systems and performance
measurement
Everything we do is a Process, which is the transformation of a set of inputs, which can include
action, methods and operations, into the desired outputs, which satisfy the customer’s needs and
expectations. In each area or function within an organisation there will be many processes taking
place, and each can be analysed by an examination of the inputs and outputs to determine the
action necessary to improve quality. In every organisation there are some very large processes,
which are groups of smaller processes, called key or core business processes. These must be
carried out well if an organisation is to achieve its mission and objectives. The section on
Processes discusses processes and how to improve them, and Implementation covers how to
prioritise and select the right process for improvement. The only point at which true
responsibility for performance and quality can lie is with the People who actually do the job or
carry out the process, each of which has one or several suppliers and customers. An efficient and
effective way to tackle process or quality improvement is through teamwork. However, people
will not engage in improvement activities without commitment and recognition from the
organisation’s leaders, a climate for improvement and a strategy that is implemented
thoughtfully and effectively. The section on People expands on these issues, covering roles
within teams, team selection and development and models for successful teamwork. An
appropriate documented Quality Management System will help an organisation not only achieve
the objectives set out in its policy and strategy, but also, and equally importantly, sustain and
build upon them. It is imperative that the leaders take responsibility for the adoption and
documentation of an appropriate management system in their organisation if they are serious
about the quality journey. The Systems section discusses the benefits of having such a system,
how to set one up and successfully implement it. Once the strategic direction for the
organisation’s quality journey has been set, it needs Performance Measures to monitor and
control the journey, and to ensure the desired level of performance is being achieved and
sustained. They can, and should be, established at all levels in the organisation, ideally being
cascaded down and most effectively undertaken as team activities and this is discussed in the
section on Performance.

The eight elements of TQM
Total Quality Management is a management approach that originated in the 1950's and has
steadily become more popular since the early 1980's. Total Quality is a description of the culture,
attitude and organization of a company that strives to provide customers with products and
services that satisfy their needs. The culture requires quality in all aspects of the company’s
operations, with processes being done right the first time and defects and waste eradicated from
operations.
To be successful implementing TQM, an organization must concentrate on the eight key

elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
Total Quality Management (TQM), a buzzword phrase of the 1980's, has been killed and
resurrected on a number of occasions. The concept and principles, though simple seem to be
creeping back into existence by "bits and pieces" through the evolution of the ISO9001
Management Quality System standard. Companies who have implemented TQM include Ford
Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.
The latest changes coming up for the ISO 9001:2000 standard’s "Process Model" seem to
complete the embodiment. TQM is the concept that quality can be managed and that it is a
process. The following information is provided to give an understanding of the key elements of
this process.

TOTAL QUALITY MANAGEMENT (TQM)
Total = Quality involves everyone and all activities in the company,
Quality = Conformance to Requirements (Meeting Customer Requirements),
Management = Quality can and must be managed.
TQM = A process for managing quality; it must be a continuous way of life; a philosophy of
perpetual improvement in everything we do.
TQM Compared to ISO 9001:
ISO 9000 is a Quality System Management Standard. TQM is a philosophy of perpetual

improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable
objectives. An ISO implementation is a basis for a Total Quality Management implementation.
Where there is an ISO system, about 75 percent of the steps are in place for TQM. The
requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard
is that the proposed changes for the next revision (1999) will contain customer satisfaction and
measurement requirements. In short, implementing TQM is being proactive concerning quality
rather than reactive.
TQM as a Foundation:
TQM is the foundation for activities which include
1. Meeting Customer Requirements

2. Reducing Development
3. Cycle Times
4. Just In Time/Demand Flow Manufacturing Improvement
5. Teams Reducing
6. Product and Service Costs
7. Improving Administrative Systems Training.

Characteristics of TQM
The characteristics of TQM, as revealed from above definition are as follows:

1. TQM is customer oriented.
2. TQM requires a long term commitment for continuous improvement of all
processes.
3. The success of TQM demands the leadership of top management and
continuous involvement.
4. Responsibility for establishments and improvement of systems lies with the
management of an organization.
5. TQM is a strategy for continuously improving performance at all levels and in all
areas of responsibility.
Potential Benefits of TQM
The advantages of adopting TQM system compared to conventional quality system are
numerous and are outlined below.
1. TQM helps to focus clearly on the needs of the market. The traditional approach of
quality control focuses on the technical details of a product so as to satisfy the
customer. However, the customer longs for different satisfaction perspectives which
are generally overlooked in the traditional approach. The needs change from person
to person and also from place to place. As TQM focuses on the concept of university,
it tries to abstract the satisfaction perceptions of the market and thus helps the
organization to identify and meet the requirements of the market in a better way.
2. TQM facilitates to aspire for a top quality performer in every sphere of activity. It is a
well accepted fact that the negative attitudes of employees and non- participative
culture of the organization pose the greatest hurdle to organization’s success, growth
and prosperity. TQM emphasis, on bringing about attitudinal and cultural change
through Promotion of participative work culture and effective team-work. The
employee’s performance, thus, is not restricted to the product or service areas but
reflects in other spheres as well.

3. It channelizes the procedures necessary to achieve quality performance. Quality in its

true sense cannot be achieved instantly. It requires a systematic and a long-term
planning and strategic approach. By focusing on defining the quality policies, goals
and objectives, and communicating these properly to one and all in the organization,
adopting SQC and SPC techniques and developing and using a system of evaluation ,
the organization can channelize their efforts to achieve the desired and objectivity
quality performance.
4. It helps examine critically and continuously all processes to remove non- productive
activities and waste. The organizations always aim at improving productivity as it
leads to reduction in cost resulting in increase in profitability. The efforts in this
direction are contributed because of the formation of quality improvement teams
which meet regularly and through a systematic approach which tries to remove non-
productive activity. A continuous effort to identify the problems and resolve them
helps to reduce the waste. The culture of well being thus improves housekeeping,
cost-effectiveness and safety.
5. It gears organizations to fully understand the competition and develop an effective
combating strategy. The dynamic changes in the global market and the open market
policies adopted by a large number of organizations have resulted in increased
competition and for many organizations the survival has become a key issue. For
this cause it is essential for the organizations to understand the competition and
develop and adopt suitable strategies to meet the challenges. As TQM helps to
understand the pulse of customer and thus the market, it gives an edge to the
organizations of variable nature to meet the competition.
6. It helps to review the process needed to develop the strategy of never ending
improvement. Quality improvement efforts cannot be restricted to any time period.
They need to be continuous to meet the dynamic challenges. TQM emphasizes on a
continuous and periodic review so as to make the required changes.
7. The benefits derived by the organizations, therefore, are many and multi-faceted.
Many of these can be measured in quantitative terms. However, the intangible
benefit, which includes enrichment of the quality of the work life and many more
are not quantifiable. At the same time, it has to be established whether they do occur

or not in order to prove or disapprove the efficacy of the concept. This can be
assessed by a well-planned research project or by carrying out an opinion survey
periodically. The tangible and intangible benefits of TQM are variable in nature.
The Ten Steps to TQM are as follows:
1. Pursue New Strategic Thinking

2. Know your Customers
3. Set True Customer Requirements
4. Concentrate on Prevention, Not Correction
5. Reduce Chronic Waste
6. Pursue a Continuous Improvement Strategy
7. Use Structured Methodology for Process Improvement
8. Reduce Variation
9. Use a Balanced Approach
10. Apply to All Functions.
The Principles of TQM are as follows:
1. Quality can and must be managed.

2. Everyone has a customer and is a supplier.
3. Processes, not people are the problem.
4. Every employee is responsible for quality.
5. Problems must be prevented, not just fixed.
6. Quality must be measured.
7. Quality improvements must be continuous.
8. The quality standard is defect free.
9. Goals are based on requirements, not negotiated.
10. Life cycle costs, not front end costs.
11. Management must be involved and lead.

12. Management Commitment

a. Plan (drive, direct)
b. Do (deploy, support, participate)
c. Check (review)
d. Act (recognize, communicate, revise)
13. Employee Empowerment

a. Training
b. Suggestion scheme
c. Measurement and recognition
d. Excellence teams
14. Fact Based Decision Making
a. SPC (statistical process control)

b. DOE, FMEA
c. The 7 statistical tools
15. Continuous Improvement
a. Systematic measurement and focus on CONQ

b. Excellence teams
c. Cross-functional process management
d. Attain, maintains, and improves standards.
16. Customer Focus
a. Supplier partnership
b. Service relationship with internal customers
c. Never compromise quality
d. Customer driven standards

1.6 Objectives
 To study and understand the functions of different departments of Airtech Pvt Ltd.
 To know the Total quality management practices implemented in the Airtech Pvt Ltd.
 To analyze the different techniques, tools and usage of Total quality management and its
effects.
 To also see the results of different techniques and its effects.
1.7 Scope of the study

The study covered understanding of the Total quality management practices, tools and
techniques at Airtech Pvt Ltd. The solving of production problems and overcoming difficulties.
How it is going to help in reducing the wastage Cost of production /unit in rupees. This study
will help the organization in improving their production and reducing the costs of failure as
analyzed on High pressure di-casting machine – Buhler machine and Militap, by taking readings
from the production report, I have analyzed the use of different control charts, cost of quality
analysis, efficiency of machines performance. How these Total quality management practices,
tools and techniques have helped to overcome the production problems in the various
departments of the organization and what are the effects of it.

1.8 Company profile
 Year of Establishment: 1980, Dharwad

Founder: 1.Mr. Lajpath Rai Sukhiji
2. Mr. M.B Suhindra Rao
3. Mr. D.Dhume
4. Mr. P.G.K Murthy
5. Mr. N. Sukraval
 Management
1. Mr. Lajpath Rai Sukhiji (Chairman and Managing Director)

2. Mr. M.M .Dhume
3. Mr. S.A Phalnikar
4. Mr. Vishvanth swamy
5. Mr. P.KG. Murthy
6. Mr. Anil Madan
7. Mrs. Renu Anil Madan
8. Mr. Rohit Seth
9. Mrs. Sapna Rohit Seth
10. Mr. Vikrant Saigal
 Location: 5th KM, NH-4, Village Narendra, Dharwad-580 005.

1.8AIRTECH PVT LTD:
Airtech Beginning in 1980 with the manufacturer of the Coventry concentric chucks, they have
grown to become one of the leading manufacturers of chucks. In fact, they provide total work
holding solutions. The company is registered under the company act 1956 as ―Airtech Pvt. Ltd.
with the initial outlay of Rs. 5, 00,000. Nature of the company is machine tool manufacturing.
Beginning in 1980 with the manufacturing of the concentric Coventry chucks, In fact, they
provide the complete work holding solutions. Constant interaction with the customers and
continuous product innovation spanning two decades, have helped them to add to their range of
standard products. The technical competence gained has also helped them to provide the cost
effective customized solution to some of the most complex work holding requirements. They
have also developed a range of the matching cylinders. To ensure a consistently superior product,
Airtech adopts a system of continuous checks and inspection right from raw material to finished
products. The company’s trained workforce also keeps and eagle eye during the production, as
they are proud of Airtech’s reputation for the quality. Research and development has been yet
another area of focus at Airtech private limited a modern cad center manned by qualified
personnel has not only seen the introduction of new products but improvements on existing range
based on the continuous feedback from the customer this dedication has ensured that Airtech
always stay ahead. In the year 2012 they started manufacturing new components to TATA
Motors, TATA steels, Dugong etc. With investment of 30 corers for their new ASU plant. Now
company is having turnover of 30 corers per annum and it’s raising every year.

Chapter 2
Machine tools

2.1 Introduction:
Improvements and diffusion of machine tools have had a major impact on productivity in
manufacturing industry since the industrial revolution. The impact has been both direct and
indirect. The direct impact consists of raising labor productivity through the use of faster, more
accurate, more mechanized machines, and of higher capital productivity through higher
operating rates, greater reliability, and higher utilization rates. The direct impact arises as the use
of new or improved machine tools has necessitated or facilitated organizational changes affecting
labor, capital, raw materials, and energy. The magnitude of these impacts has varied over the
years with the areas of applications as new production methods have made possible entirely new
products or lowered the cost of existing products sufficiently to create new markets.
The first part of the paper contains a review of the historical development of machine tool
technology since the Industrial Revolution, paying particular attention to the role of interaction
between producers and users of machine tools. The second part focuses on the way in which
recent development differs from that in earlier periods. In particular, it is found that the major
changes in machine tool technology, from the so-called American System of Manufactures in the
early 19th century to the development of "Detroit Automation" in the 1950s, have tended to
improve mass production methods. By contrast, the development of numerical control, beginning
in 1948, has opened up the possibility of extending industrial production methods and
automation to areas previously characterized more by handicraft methods. Even though this
technology is not yet fully utilized, it is clear that the economics of industrial production has
been revolutionized by the cost reduction of small scale production relative to large scale and the
degree of flexibility offered by the technology.
The third section of the paper deals with the present development trends, particularly discussing
the increasing importance of flexibility and the shifting emphasis from development of
individual pieces of machinery to integration and control of entire manufacturing processes, i.a.
through the use of industrial robots. The reasons for the need for greater flexibility in
manufacturing are also identified.

Machine tools are defined as power-driven machines that are used to cut, form or shape metal.
The product of the metalworking industries employing such tools make up nearly half of
manufacturing output in developed industrial countries. Clearly improvements and diffusion of
machine tools have had a strong impact on productivity in manufacturing industry since the
Industrial Revolution. The impact has been both direct and indirect. The direct impact consists
of raising labor productivity through the use of faster, more accurate, more mechanized
machines, and of higher capital productivity through higher operating rates, greater reliability,
and higher utilization rates. The indirect impact has arisen as the use of new or improved
machine tools has necessitated or facilitated organizational changes affecting labor, capital, raw
materials and energy. Over the years, the magnitude of these impacts has varied with the areas
of application as new production methods have made possible entirely new products or lowered
the cost of existing products sufficiently to create new markets. The composition of the impact as
.Regards direct and indirect effects on productivity also seems to have shifted over time. The
main impact in recent years seems to have been indirect, i.e., through organizational change.
a. 1850-1900
Machine Tools come off and America Takes the Lead At mid-century, Great Britain was still
leading in most fields of technology, including machine tools. The "American System" was an
exception. But by 1853, it was being exported to England in the form of machinery and
knowhow to produce arms using American methods at the Enfield Arsenal in Britain. (See Ames
&. Rosenberg.) In the second half of the century, technological change in machine tools became
gradual and universal rather than associated with spectacular changes in particular types of
machine tools
b. 1900-1939: The Automobile Dominates Machine Tool Development

Toward the end of the century, the automobile industry took over from the bicycle manufacturers
the role as the leading machine tool user. No industry has had a more profound influence on the
development of machine tools in the 20th century than the automobile industry.
c. 1939-1945: The Impact of World War II
The conversion to war production in connection with World War II had a tremendous impact on
manufacturing technology. For one thing, it forced the auto industry to take over production of

airplanes from the airplane manufacturers which were simply too small and poorly organized to
be able to handle the enormous production volume required. In November 1938, the United
States Assistant Secretary of War directed the Chief of Staff to prepare plans for an Air Force of
10,000 planes within two years. This represented over ten years’ production at the then current
rate of production! (Wagoner, p. 238.).
The application of production knowhow from the auto industry to the manufacture of airplanes
led to important cross-fertilization of the manufacturing technology between these two
industries. Because of the increase in capital equipment required to accomplish this, the special
production problems involved, and the high priority assigned to expansion of aircraft
production, the aircraft industry became the dominating influence on technological change in
machine tools during World War II, a position which it has since retained (jointly, since the late
19505, with the space industry). However, aircraft production was not the only industry to
expand in connection with the war effort. The same story was repeated on a smaller scale in
many manufacturing industries. This is reflected in machine too l production.
d. 1941 to 1945
The American machine tool industry produced about 800,000 machine tools, out of which about
100,000 were exported. A very large share of the who1e stock of machine tools in use was
renewed, large1y by adding new capacity: "When the American Machinist Inventory was taken
in 1940, only 28 % of the machine tools in use were less than 10 years old. Five years later, that
figure had gone to 62 %". (American Machinist, P.G-1)
Indeed, it is no exaggeration to say that much U.S. plant capacity to this day, and even some of
the machine tools in use, originated in this period. As many industries geared up for
substantially higher production and invested in new plant and equipment, the advances which
had occurred in machine tool technology in the 19305 were rapidly diffused, especially
cemented carbide tools and automatic transfer machines. As many industries geared up for
substantially higher production and invested in new plant and equipment, the advances which
had occurred in machine tool technology in the 19305 were rapidly diffused, especially
cemented carbide tools and automatic transfer machines. Thus, during World War II, and in
large rneasure directly as a result of and in large rneasure directly as a result of the war effort,

American manufacturing industry became equipped with new machinery for high-volume
production to an extent which gave America a substantial lead over her overseas competitors in
this type of technology. This, in combination with the massive destruction of industrial capacity
in both Europe and Japan, probably explains a great deal of the competitiveness of American
industry and the ―Dollar glut" of the 1950s - but probably also the slow rate of investment and
relative decline of several sections of American industry since that time.
e. 1945-1982: "Detroit Automation" and Numerical Control
When the war ended and manufacturing industries returned to civilian production, the production
methods and tools used during the war were applied to civilian products. The higher speeds and
greater rigidity of machine tools required by the new tool materials also put increased demands
on the motive power of machine tools: In 1938, the average horsepower of machine tools was
11.9. By 1948 it was 23.4, and by 1958 it had reached 50 horsepower, i.e., the horsepower per
machine doubled every ten years. (Sonny, 1971, p.77).Another important development was
increased use of mechanization. As we have seen, mechanization had been an important part of
technological change in machine tools since the end of the 19th century, particularly in the
automobile industry, with Ford as the technological leader. Special-purpose machines had been
common even before there was an rnachine-tool industry - but by gun maker s or other
specialists for their own use. Automatic control of such machines was possible since the
development of the cam, i.e., a mechanical device such as a projection on a wheel which causes
an eccentric rotation or a reciprocating motion to another wheel, shaft, etc. Later, methods of
control using pneumatic, hydraulic, and electric devices.
Began to develop, during the years immediately following World War II, Ford Motor Co was in
serious trouble and tried to reduce production costs by introducing mechanical handling de vices
between transfer machines. A new term was coined: automation. The first large-scale application
of automation at Ford was the Cleveland engine plant built around 1950. It was built for
machining engine blocks and had mechanical handling of the block in, out and between
machines. What was new at Ford was the tying together of several separate transfer machines in
to a continuous system. (American Machinist, pgno.6-8.)
Even though the plant was not really automatic, it employed more than 4,500 people, and even
its most automatic element, the cylinder-block line, used 36 operator s and Il inspectors per shift

and even though it had few feedback mechanisms and no automatic assembly of the engine, it
inspired a succession of improved engine plants throughout the industry: Pontiac in 1954-55,
Dodge-Plymouth in 1956, and others. (Bright, pgno 651-653.)
Numerically controlled (N C) machine tools occupy an intermediate position between

conventional automatic machines (transfer machines) and conventional hand-operated machines.
In the beginning, the emphasis in the development of numerical control was definitely on
reducing the trial and error costs associated with manufacturing complex parts with a high degree
of precision on conventional, manually operated machines.
f. Present Development Trends
Flexibility vs. Economies of Scale

The foregoing historical analysis raises the following irnportant question: Are scale economies
becorning less significant and the cost consequences of flexibility more important (economies of
scale vs. economies of scope). Let us start with the question of why scale economies may
become less important. If one wants to produce, say, 200,000 or rnore units a year of a
particular item, there is probably no better way to do it than to use a specially built (dedicated)
production line - a transfer line. But suppose that for some reason it is desirable to change the
design of the product being made change the dimensions somewhat, drill a different size hole,
etc. If the changes are large enough, it would be necessary either to buy a new transfer line or to
re-build the old one. Only very minor changes could be handled by changing heads or tools on
the old machine. Even so, it would involve shutting down the machine for a very considerable
period of time and carrying out the change manually. Alternatively, suppose that the projected
production volume of 200,000 units per year turns out to be too optimistic. If so, the transfer line
may end up running much less time each year than planned. But because it is a highly dedicated
machine, it cannot be used for anything else. In this case, the capital cost becomes considerably
higher and the profits smaller than expected. In contrast to this case of large-volume production
of a single standardized part, consider a situation in which one wants to produce a family of
parts, i.e. a set of parts with similar characteristics but differing slightly in size or shape. Let's say
the desired production consists of 5,000 units of part A, 20,000 units of part B, 50,000 units of
part e, and only 1,000 units of part D. No one of these parts is to be produced in sufficient
numbers to warrant a dedicated machine. Instead, a set of machines which can be easily program

med to handle any one of these parts and the n switch quickly to the next part would be more
appropriate. This would be a typical application of numerically controlled machines. If desired,
they could be linked together via some materials handling system, or they could be operated in
batch mode. In the latter case, each batch might be accompanied by a punched tape or other
device to be inserted into the numerical control unit of each machine and instructing the machine
as to what operations to perform.
Each machine could perhaps perform only one operation at a time rather than several as on a
transfer machine, so that it would take more machine time to get the finished part than on a
transfer line. But using a system of this sort, based on numerical control, gives a much higher
degree of flexibility than a transfer machine. If it becomes necessary to change the design of one
or all the parts, this can be done essentially by giving new instructions to the appropriate
machines. If the allocation of production among parts A - D should turn out to be different from
that originally planned, that can be easily handled. And should the total production volume fall
short of the projected level, the machines could be used to manufacture other parts, if so desired.
Obviously, there is some output volume beyond which it would always pay to get a dedicated
machine, and there is some output volume below which it would always be cheaper to buy NC or
even conventional machines. There are and will remain to be grey areas in between in which
these three types of technologies will compete. As indicated earlier, transfer machine
manufacturers have begun in recent years to respond to the need for increased flexibility, e.g. by
Developing devices facilitating tool or head changes, thus making it possible to manufacture
families of slightly varied parts on a single machine. At the same time, NC machines are
becoming more productive through greater cutting speed, the addition of more spindles, better
feeding and unloading devices, etc.
Now, to get back to the question of why scale economies may be becoming less irnportant, it is
clear that this is very much linked to the notion of flexibility in the rnanufacturing process.
Essentially, the greater the need for flexibility, the rnore difficult it is to fully utilize a highly
dedicated machine designed for a large production volume. However, the production volume is
essentially determined by the type of product and the market, not by the manufacturer alone. A
manufacturer who decides deliberately to produce a smaller volume than his competitors in
order to use rnore flexible machinery may find himself doing better in slumps and worse in
booms than his competitors. Who will be the most competitive in the long run is determined

largely by the market growth rate and its stability. American firms, operating in a huge domestic
market, have often been forced into larger scale, less flexible production than their foreign
competitors. This gives them an advantage when the market is steady and growing but also a
disadvantage when it is unstable or declining. But the tendencies towards convergence of large
and small scale production technology which we now observe indicate that the choice of
technology in the future may become substantially less dependent on scale than has been the case
up to now. In addition, the internationalization of markets means that scale becomes a company
characteristic, not a national one. It seems as though these are important factors in trying to
understand the changes in international competitiveness which have occurred in recent years.
g. Reasons for the Need for Greater Flexibility
However, at the same time as the tradeoff between scale and flexibility is changing, there seems
to be a secularly increasing need for flexibility in the manufacturing process. There are several
reasons for this
1. The character of competition has changed dramatically, particularly in the last decade.
The internationalization of markets means not only greater competition (although the
number of competitors in a particular field may actually be reduced as a result of new
competitors forcing older firms out of business) but also competition of a different kind.
This has been shown, for example, to be true in the machine tool industry. (See Carlson,
1983.) But this is likely to be true not only for machine tools but also for a very large
group of manufactured goods. American firms are faced with foreign competition to an
extent never hear d of before, while in Europe intra-European competition has been
supplemented with extra-European competitors, particularly from Japan and other
countries in the far East. Thus, in both America and Western Europe there is a new
element: competitors with fundamentally different cost structures and ways of doing
business. This has led, among other things, to a greater variety of products being offered
in the market. Given a greater choice, customers are forced to become more
discriminating in their purchases. The greater their technical competence, the more
features they demand on the products they buy. But unless the manufacturer is able to
simply add more features as standard equipment on every product or unless the greater
variety of products leads to a substantial market expansion, this means a larger number

of short production runs to produce families of parts rather than a very large production
of a single part. In other words, a greater variety of features means a greater need for
flexibility of the production equipment.
2. Greater competition tends to reduce the product life cyc1es. Hence, in order to extend
the life of existing basic designs, manufacturers are forced to make frequent small design
changes. This requires capability (flexibility) in terms of both organization and
machinery.
3. The greater competitive pressure has reduced profitability and has forced companies to
reduce the amount of capital tied up in their operation, i.e. to increase the capital turnover
rate. Since in the engineering industry typically 50-60 percent of the operating capital is
tied up in raw materials, goods in process, and inventory of finished goods (the
remaining 40-50 % being divided between plant and equipment and accounts
receivable), reduced inventories has become an important target in many firms. But since
the optimal inventory is determined by the time and cost required reproducing the
inventory, the more flexible the production equipment, the smaller the required inventory
of finished goods. For similar reasons customers, too, want to hold down their
inventories. This means reduced lot sizes and increased order frequency, which for the
manufacturer means greater need for flexibility of the production equipment and of the
whole manufacturing operation. The extremely high interest rates in recent years have
made it even more imperative to reduce the capital tied up in the manufacturing process.

Chapter 3
Industry Profile

3.0 Industry Profile
Introduction:
Manufacturing Industry:
Manufacturing has traditionally played a key role in the economic growth of developing
countries. It has been argued in recent years that the importance of manufacturing has diminished
over the last 20-25 years, resulting in premature deindustrialization or no industrialization in
developing countries. This study explores whether the low levels of industrialization in
developing countries are attributable to long-term changes in the development characteristics of
manufacturing or to the manufacturing sector’s general global prospects. The study’s findings
indicate that the decline in both manufacturing value added and manufacturing employment
shares in many developing countries has not been caused by changes in the manufacturing
sector’s development potential, but is primarily caused by the failures of manufacturing
development in a large number of developing countries against the backdrop of rapid
manufacturing development in a small number of countries, thus resulting in a concentration of
manufacturing activities in developing countries.
Kuznets (1966) described long-term development patterns of countries based on empirical

analyses of national accounts and argued that industrialization—or increases in the share of
manufacturing in GDP—is a key feature of modern economic growth, which is markedly
different from the much lower growth rates observed in the world before the onset of the
industrial revolution. Kaldor examined the relationship between industrial development and
economic growth, and based on empirical results, characterized the manufacturing sector as ―the
main engine of fast growth‖ (Kaldor, 1967:48). This not only held true for the 12 early
industrializes Kaldor examined, from the UK to Japan, but is also characteristic of catching-up
countries that have experienced rapid, sustained growth (The Growth Report, 2008; Felipe et al.,
2014). At high income levels, and as a standard feature of successful structural change, countries
invariably experience deindustrialization, resulting in lower growth rates. Deindustrialization is
primarily attributed to a decline in labor intensity and a shift of manufacturing activities to lower
income countries based on trade between mature economies and developing countries (Tregenna,
2009; Kucera and William, 2003; Row thorn and Ramaswamy, 1997).

Premature deindustrialization or non-industrialization has recently been increasingly noticeable

in developing countries with a lower share of manufacturing in GDP at their peak, which they
reached at a much lower level of income than the early industrializes (Dasgupta and Singh, 2006;
Amirapu and Subramanian, 2015; Rodrik, 2015; Ghani and O’Connel, 2014). While the debate
on whether services can become a new growth-enhancing sector continues, research indicates
that premature deindustrialization is prevalent in developing countries and that manufacturing no
longer plays the role of the engine of growth in developing countries. However, to attribute
premature deindustrialization to a fundamental decline in the significance of manufacturing in
the world due to changes in global demand and supply rather than to the failures of some
countries to develop their manufacturing sector, we need to ascertain at least one of the following
two conditions.
Indian manufacturing industry is on high growth trajectory .As targeted National manufacturing
competitiveness council (NMCC) ,it is set to contribute 25% to the GDP by 2025 compared to
the current share of 16 % .Notably this sector contributed at 66% to the nation’s exports by FY11
and has been streghthing at CAGR of 20% in the last five years. Manufacturing holds a key
position in the Indian economy, accounting for nearly 16 per cent of real GDP in FY12 and
employing about 12.0 per cent of India’s lab our force. Growth in the sector has been matching
the strong pace in overall GDP growth over the past few years. For example, while real GDP
expanded at a CAGR of 8.4 per cent over FY05-FY12, growth in the manufacturing sector was
marginally higher at around 8.5 per cent over the same period. Consequently, its share in the
economy has marginally increased during this time – to 15.4 per cent from 15.3 per cent. Growth
however has remained below that of services, an issue that has not escaped the attention of
policy makers in the country.
Strong growth has been accompanied by a change in the nature of the sector – evolving from a
public sector dominated set-up to a more private enterprise driven one with global ambitions. In
fact, according to UNIDO, India (with the exception of China) is currently the largest producer
of textiles, chemical products, pharmaceuticals, basic metals, general machinery and equipment,
and electrical machinery. In the coming year, the sector’s importance to the domestic and global
economy is set to increase even further as a combination of supply-side advantages, policy
initiatives, and private sector efforts set India on the path to a global manufacturing hub.

Global Scenario of Machine tool industry:

In a competitive global manufacturing world, increasing productivity is the most crucial aspect.
One way to increase the productivity is through skilled work force. Another way to improve
productivity is through more efficient equipment, like Machine tools. It’s very easy to look at
these two means of achieving higher productivity as strictly competitive, for example when lab
our bemoans the introduction of robots or other more efficient capital equipment. But, in reality,
higher skilled labor and more efficient Machine tools are complementary. Higher skilled labor is
necessary to make the most of more efficient Machine tools and vice versa. Therefore, it’s the
appropriate combination of the two that lead to higher standards of living. How these two factors
of production are combined is governed by their relative costs. In recent years, the skill set of
manufacturing laborers around the world has been on the rise. This is evident in the improved
quality of machined parts around the world. But, a higher skilled workforce demands higher
wages and other benefits. At the same time, interest rates around the globe are hitting all-time
low, which has significantly lowered the cost of capital equipment. The dynamic of raising wage
rates and declining interest rates means that it is now relatively cheaper to increase productivity
through capital equipment investment. Because Machine tools have a hand in virtually
everything that is manufactured, the level of investment in machine tools is a sign of which
countries are investing with an eye to the future of a more highly skilled workforce. Current
Machine tool purchasing trends show that the strongest manufacturing countries are making
greater investments in the latest machine tool technology. Global Machine tools consumption
was $75.3 billion, an increase of just 0.3 percent in 2014. But, among the 10 largest machine
tools consuming countries, which generally correspond with the 10 largest global economies,
machine tool consumption increased 1.7 percent in 2014. In the other 15 countries used to
estimate the global total, Machine tools consumption contracted 7.9 percent in 2014.
So, the countries with a stronger manufacturing base made a much larger relative investment to
enhance the productivity gap between them and everyone else. World Machine tool production
fell for the third year in a row to $81.2 billion. In 2014, world production fell by 3.1 percent. The
rate of contraction in production moderated in 2014 as Machine tool builders brought inventory
levels down, bringing supply into a better balance with demand. This is an indication that
Machine tool prices around the world should be firming up. Looking ahead 2015, global Gardner

Research is forecasting world Machine tool consumption will fall 0.4 percent to $75.0 billion.
However, the ten largest Machine tool consumers will see a decline of 1.1 percent while the
remaining 15 countries will see consumption increase 3.7 percent. China remained the world’s
largest consumer of Machine tools by a wide margin. However, China’s consumption of machine
tools have dropped to $31.8 billion in 2014 from $40.8 billion in 2011 i.e. 22 percent decline
over three years. Because China’s money supply is growing at nearly its slowest rate in more
than two decades and its industrial production has grown at a continually slower rate since
January 2012, we think China’s machine tool consumption will decline again in 2015. We are
forecasting $28.6 billion of machine tool consumption in China. At $8.1 billion, machine tool
consumption was essentially unchanged in the U.S., which is the world’s second largest machine
tool consumer. We expect machine tool consumption to increase to $10.4 billion in 2015.
Germany remained the third largest machine tool consumer in the world. However, Germany’s
consumption dropped by 10.8 percent, which was the second largest percent decline of any
country in the top 10 consumers. Germany’s money supply, industrial production, and capacity
utilization are all growing at decelerating rates. Therefore, we think machine tool consumption in
Germany is likely to fall by another 8 percent in 2015. Japan and South Korea remained in the
top five consuming countries. But, they flip flopped places with Japan moving up to number four
And South Korea falling to number five. In 2014, Japan’s machine tool consumption increased
39.4 percent, which was the largest increase of any country. Japan should see an increase in
consumption in 2015 as well, albeit a much smaller one. Consumption increased by 13.2 percent
In South Korea in 2014. Like Japan, it should see a smaller increase in 2015. Two countries that
have seen significant declines in machine tool consumption are India and Brazil. In 2011, both
countries consumed close to $2.5 billion and were ranked numbers six and seven in the world,
respectively. But, in 2014 India consumed just $1.4 billion of machine tools and Brazil just $1.0
Billion. However, India seems to be turning around as we think consumption will increase in
2015 for the second year in a row. Brazil looks to be a different story. We think consumption
will drop to $0.7 billion in 2015 as both its industrial production and capacity utilization are
contacting at a rapidly rate. Key high lights of Global performance were continued by Chinese
dominance. China for years has been the largest machine tool consuming countries. In 2009 it
became the largest manufacturing nation as well and this leadership continued and still today
China is dominant player in the field of Machine tools. China has been the world’s largest

producer of machines tools since 2009. But, its production has fallen to $23.8 billion from its
peak of $29.5 billion in 2011. Given the nature of China’s machine tool market and the cooling
off of its economy, production is likely to decline further in 2015. For the second year in a row,
Germany was the second largest producer of machine tools. However, production declined
roughly 20 percent in 2014. It’s also the world’s largest exporter of machine tools. In Japan,
machine tool production dropped nearly 50 percent from 2011 to 2013. But, production
rebounded in 2014, increasing to $12.8 billion. This put Japan in third place in the world, just
$0.1billion behind Germany. South Korea moved up one spot to number four while Italy fell one
Spot to number five. Both countries produced more than $5 billion of machine tools. Japan
bounced back smartly despite all odds and onslaught of tsunami by retaining third position in
global ranking of leading machine tool players. The gap between China and Japan is
substantially large making an arduous task for the latter to catch even the next few years. The
second largest Machine Tool manufacturing country- Germany fared equally well with a positive
Growth of 40%, notwithstanding the not- so- positive conditions in European Union.2010
onwards were equally years of delight for other Asian performers like Korea &Taiwan and these
Countries grew at over 65% and secured leading position and achieved the status of being among
Top ten in overall production ranking. Sluggish market conditions in Europe led to slip in
fortunes of most of the European Machine Tool manufacturing countries during this period.
Italy, Switzerland, Spain, France, Austria, Czech Republic and UK either had flat growth or
witnessed decline in production of machine tools. USA also witnessed similar business scenario
during this period and dropped to 6th position. It is second successive year of decline for USA
With production 4700 million USD being less than half what it achieved in year 2008. Asia is
now being seen as the future destination for global machine tool market and it is expected that
next few years will be the years of resurgence for all leading Asian machine tool Players. Share
of Asian countries in global production increased to 62% in 2011-12 and is well on course to
achieving a two-third share within next year. All in all, 2011-12 was remarkable year with high
growth for most of the machine tool manufacturing countries of the world. Asian belt will
continue to be the global attraction vis-à-vis the machine tool industry- with expectations of
better performance by all its manufacturing countries in next few years. Exports of machine tools
by 28 countries in 2011-12 totaled 45.7 billion USD, generating a mighty 37.3% growth over the
previous year. Japan continued its dominance over the export front, followed closely by

Germany and Italy. Together with Italy, the three countries accounted for more than half of the
global machine tool exports in 2011-12. Germany surpassed the Japan in 2014 and became the
largest exporter of machine tools in the world. There was good news on import front too with a
38% growth on total imports worth 38billion USD in 2011-12. The world’s largest importer
happened to be China with more than one-third share; followed by USA, Germany and Russia.
The global industry consumed 86.3 billion USD worth of metal working machine tools in 2011-
12 and registered a growth of 34% over the previous year. China again, as always, led the pack
with a stupendous share of 45% of the total share of consumption and averaging marvelous
growth of 33%. Other big consumers- Japan, Germany and USA also reported quantum growth
in their respective machine tool market from the view point of consumption. Global scenario in
consumption witnessed downward trend in 2013-14 and 2014-15. China is as usual emerged as
leader followed by USA, Germany and Japan during this period. India with 3% global share of
consumption occupies 9th largest position in the world.

Indian scenario of Machine tools:

Since 1990, India has also emerged as one of the wealthiest economies in the developing world.
During this period, the economy has constantly grown, albeit a few major setbacks. India ranks
14th in the world in factory output accounting for 27.6% of GDP. Post liberalization, economic
Reforms brought in foreign competition that led to privatization of certain public sector
enterprises, opened up sectors hitherto reserved for the public sector and led to an expansion in
the production of fast moving consumer goods. The government is giving thrust to
manufacturing sector at the right time when the world is looking at India as a manufacturing hub
for global requirement. The Indian manufacturing base is 4th largest emerging economies in the
World. The next five to seven years are very critical.
The objective is to ensure sustained growth of 15-20% which will not be feasible unless proper
Thrust is given to Machine Tools manufacturing sector. The need of the hour is to globalize the
Machine Tool Industries of India to cater to the raising expectation and requirement of
Automobile, Railways, Defense, Aerospace and other engineering Industries to give required
Boost to manufacturing sector. Being an integral sector, growth of machine tool industry has an
Immense bearing on the entire economy, especially India’s manufacturing industry. It is even
More crucial for development of country’s strategic segments such as Defense, Railways, Space
and Atomic energy. Machine tool industry in India comprises about 450 manufacturers with 150
units in organized Sector. Almost 80 percent of production is contributed by ten to fifteen major
companies of this Industry. The industry has an installed capacity of over 5000 corer and
employs a work force of totaling 45,000 skilled and unskilled personnel. Machine tool industry
in India is scattered all over the country.
The hub of manufacturing activities, however is concentrated in places like Mumbai and Pune in
Maharashtra, Batala and Ludhiana in Punjab, Ahmadabad, Baroda, Jamnagar, Rajkot and
Surendranagar in Gujarat; Coimbatore and Chennai in Tamil Nadu; some part in east India;
Bangalore in Karnataka. Bangalore is considered as the hub for the Indian Machine Tool
industry. The city, for instance, houses renowned names such as HMT Machine Tools Ltd, Ace
Group, BFW and Kenna Metals. India is ranking on 12th position in terms of production and
produced 875 US $ million worth of machine tools in year 2011-12, having share of 0.93% in
global production. India ranks 7th in consumption and consumed 2638 US $ million holding
share of 3% in global consumption. Machine Tool production declined in 2013-14 and 2014-15.

And at present India ranks on 14th position in terms of production and 10th position in terms of
Consumption. Machine tool consumption is almost three times the production which justifies the
Immense growth potential in Machine Tools industry and all out efforts should be made to
Reverse this trend, which will be major step towards much needed economic development of the
Country and large scale generation of employment.
Manufacturing Range:
The Numerical Control (NC) machines were developed in the late 1940s and 1950s by linking
computers to production machinery, which led to the automation of machine tools. This was
followed by the introduction of computerized numerical control (CNC) machines in the 1960s,
which utilized digital controls technology and computers to control the movements of the
machines for performing the metal working process. CNC machines reduced the human
interaction required in different steps of machining process. Moreover, they have removed the
need for manual work to make complicated mathematical calculations required to produce
shapes with high complexity and accuracy. The computerization of metal working technologies
continued by the introduction of computer-aided design (CAD) and computer-aided
manufacturing (CAM) software which shortened the period between the design and production
process and provide efficiency gains in material consumption. Today, modern CNC machines are
Fully-automated sophisticated metal working tools controlled by computers and they combine
different types of machine tools to produce even more complicated parts required by modern
technology. These are called turning centers, machining centers & grinding machines and
represent the state-of- the-art technology in metal working. Machine tools have had a direct
Impact on cost reduction, set-up and lead times, quality improvement and productivity. As such,
The machine tool industry is the backbone of modern manufacturing; the prime mover of
progress and is the cornerstone of economic development. Today, machine tools have a wide
range of applications in major industries of the economy ranging from automotive to aerospace,
energy generation, mechanical construction and medical equipment engineering. It is very
critical subsector of Mechanical Engineering and manufacturing sector. The Indian Machine
Tool industry including HMT Machine Tools Ltd manufactures almost the complete range of
metal cutting and metal forming machine tools. Customized in nature, the product from the
Indian basket comprises conventional machine tools as well as computer numerically controlled

(CNC) machines. There are other variants offered by Indian manufacturers too, including special
purpose machines, robotics, handling systems and TPM- friendly machines.
1. General Purpose Machine Tools (Hydro-Mechanical control)

2. Standard CNC (Computer Numerically Controlled Machines) Machines
3. Gear cutting Machines (CNC & Conventional)
4. Grinding Machines (CNC & Conventional
5. Broaching Machines (CNC & Conventional)
6. Special Purpose Machines (CNC & Conventional)
7. Press & Press Brakes (CNC & Conventional)
8. Pipe Bending Machines (CNC & Conventional)
9. Automation Solutions and Robotics
10. Multi Tasking Machines (MTMS) –CNC Machine Tool with multiple axes that combine
Turning, milling, grinding, material handling and automation into a highly automated and
Sophisticated Machine Tool.
User Sector:
The user sector of machine tools are Automobiles and Auto ancillaries, Railways, Defense,
Agriculture, Steel, fertilizers, Electrical, Electronics Telecommunication, textile machinery, Ball
& roller bearings, Industrial valves, Power driven pumps, Multi product engineering companies,
Earth moving machinery, Compressors and consumer durables like washing machines
refrigerators, television sets, watches, vacuum cleaners, air conditioners, etc. The critical user
sector includes Strategic sector of our country such as Defense, Power, Aero-space, Ship
building and various research establishments which can only progress with co-existence of
strong Machine Tool Industry.

Future scope:
Looking at the rate at which the manufacturing industry is consuming the machine tools with
increase in its production rate the consumption will also increase linearly. The Indian machine
tool industry is growing at a steady pace and with the continuous support of the government aims
to grow even further ahead .The Indian machine tool industry has slowly but steadily positioned
itself in the global market. The current market size of machine tools in India for 2016–2017 is
estimated to be around 1.78 billion dollars of which the domestic production accounts for about
47 % of the total consumption. The industry registered an impressive growth rate of 23 % during
2016–2017, states the Indian Machine Tool Manufacturers’ Association (IMTMA). In terms of
global rank, India is 12th in production and 8th in consumption as per the latest Gardner
Research Survey 2017.
India stands 12th in production and 8th in the consumption of machine tools in the world as per
the 2017 Gardner Business Media survey. The country is set to become a key player in the global
machine tools industry and is likely to see substantial high-end machine tool manufacturing.
With emphasis on Make in India and manufacturing growth, for which the machine tools sector,
serves as the mother industry.

Chapter-4
Company Profile

4.0 Company profile
Airtech was established in the year 1980 as a machine tools manufacturing industry .Airtech
beginning in 1980 with the manufacturer of the Coventry concentric chucks, they have grown to
become one of the leading manufacturers of chucks. In fact, they provide total work holding
solutions. Constant interaction with the customers and continuous product innovation spanning
two decades, have helped them to add to tier range of standard products. The technical
competence gained has also helped them to provide the cost effective customized solution to
some of the most complex work holding requirements. They have also developed a range of the
matching cylinders. To ensure a consistently superior product, Airtech adopts a system of
continuous checks and inspection right from raw material to finished products. The company’s
trained workforce also keeps and eagle eye during the production, as they are proud of Airtech’s
reputation for the quality. Research and development has been yet another area of focus at
Airtech private limited a modern cad center manned by qualified personnel has not only seen the
introduction of new products but improvements on existing range based on the continuous
feedback from the customer this dedication has ensured that Airtech always stay ahead.

Name: Airtech Pvt Ltd
Company Logo:
Established Year: 1980
Office adress: Block No87E, 5TH KM, National Highway No-4, Village Narendra,
Dharwad-580008
Business Type: Manufacture of power chucks, rotary cylinders, Custom built chucks
, turret lath tooling
Chairman of Airtech: Mr. Lajapatrai Sukhija
Man power: 400
Annual turn over: 30 crores
Competitotrs : Airtech pvt Ltd is one of the manufacturing concerns of concentric

Coventry chucks and it is also one of the major work holding companies in India. Even though it
faces huge competition from various companies such as,
1. Guinduy machine tool (GMT), Chennai.

2. Scientific engineering corporation Punjab.
3. Chennai Clamping devices.
4. Jaws manufacturing Pune.
5. Bharath Forge limited.

These are competitive in cost margin. This can be manageable by the Airtech pvt Ltd through its
quality and the services. It is eligible to compete with the other company. They even faces the
competition from various international companies, hence competitors can classified as Indian
and foreign competitors.
Foreign Competitors:
1. ROHM, Germany SMW –Auto Block

2. Kitagawa – Japan
3. ITW USA & India (Hyderabad)
1) Customers: It has 4 different customers are as Follows:-
1) OEM (Original Equipment manufacturers)
a. Laxmi Machine Works, Coimbatore

b.ACE Designers Bangalore
c. Jyoti Machine, Rajkot
d.HMT
Public & Private Company
a. Bajaj Auto, Aurangabad
b.Telco, Dharwad & Pune
c. BHEL Bangalore
d.HAL Bangalore
3) Government Organization
a. Railways
b.Defenses
c. Power Supply Plant
4) SSI around Hubli & Dharwad

4.1 Mission and Vision statement:
Vision:
 To design, develop and manufacture high precision work holding that are second to none.
 To create quality standards that will be bench mark in work holdings.
 To build the brand name that would be preferred by choice not by persuasion.
Mission:
 Build an organization that installs in every employee a sense of dedication, true
camaraderie and feeling of the family.
 Make working in Airtech a passion rather than a duty.
 To be a social responsible, environment friendly organization that care for the society and
environment it belongs to.
Quality Policy:
 Expert engineers for expert work.
 Customer’s contribution and care.
 Leading manufacturers of chucks.
 Provisions of work holding solutions.
 Continues interaction with the customers.

4.2 PRODUCT PROFILE:
APL manufactures three kinds of machine products they are
1. Chucks
2. Cylinder
3. Chuck Jaws
a) CHUCK
Figure .4.2a .Chuck manufactured

Manufactured from high-grade alloy steel, all the sliding surfaces of these chucks are hardened
and ground for accurate running and long service. Lubrication facility provided on each base
jaw, ensures better gripping force output. The Wedge design of the chuck has a self-locking
feature, that prevents accidents and it does not lose its gripping power even at cutting loads.
These compact and sturdy chucks offer powerful grip together with high repeatability. Their
stable gripping power even at higher speeds makes them ideal for CNC applications.
The base jaw design is such that in the event of breakage it is retained within the jaw ways of the
chuck. The chuck is actuated by a rear mounted hydraulic or pneumatic cylinder via a draw bar
passing through the machine spindle bore. Since it is important that the cylinder should provide
the correct operating force to match the chuck, the supply of line pressure to the cylinder should
be adjusted accordingly. These chucks are offered both in two-jaw and three-jaw versions.
Standard hard and soft jaws can be replaced with special hard and soft jaws for chucking
different components.
b.Cylinder
Figure 4.2b.Cylinders manufactured
This model is improved version of previous model HCHS. Cylinder Body and Distributor are
made of Aluminum alloy. Compact design reduces the weight on the machine spindle and
maintains outstanding stability during high-speed operation. It is ideal for high-speed CNC
chucking lathes. It is also suitable for Front or Rear mounting. The oil supply system in the
distributor housing allows a little oil leak out, to ensure continuous lubrication of the bearings
and avoid heat generation. To ensure higher operational safety, provision to fit proximity
switches can be provided as on option. These cylinders can perform with oil pressure ranging

from 3kgs per cm to 40kgs per cm. Cylinders with non-return valves can also be offered on
request.
c. Chucks Jaws
Figure 4.2c.Chuck Jaws
All the soft jaws are made of high carbon steel. The hard reversible jaws are made of case
hardened steel. Hardened and ground, they are provided with diamond serrations for a firm grip.
The form ground serrations range from 1/16‖ x 90, 3/32‖ x 90, 1.5 x 60, 2.5 x 60, and 3.0 x 60.
Special jaws are offered to customer's specifications or to suit customer's components.
d. Front Gear Box and Rear gear box production
Figure .4.2d.Front and Rear gear box

4.3 Departmental Study:
Following are the departments at Airtech
1. Administration and HR department

2. Accounts
3. Marketing and customer support
4. Design
5. Production (Airtech and Chuck -matic)
6. Planning and Purchase
7. Quality
8. Stores

4.3a.Administration and HR Department:
To look after all the administrative works of the organization and other departments with
common objective of achieving a good administration and control of human resources. Giving
training to the employees based upon the performance in the job and to achieve the better
productivity from them.
All department heads every day they meet to the administration regarding their issues and areas
of improvement by giving suggestions to the administration head. This department consist
experts and experienced people who are given responsibility for handling legal, other corporate
issues. There are 200 permanent and 200 contract workers work in company. In order to have
good combination for achieving common objective of the company the department acts like a
bridge between permanent and contract workers.
The HR department has been a key role for the organization from the since its inception by
recruiting the great technical skilled lab our and retaining them in the company. The company
follows the old performance appraisal system for which I have suggested a new format for the
organization which was being accepted by the HR department. Recruitment is done for the
experienced people and local talented people of the same domain.
In order to reduce the company costs they have stopped hiring permanent employees and HR
Department has played a major role by brining the policy of contractual recruitment which is
fewer burdens on the organization, which has helped the organization in reducing the cost.

4.3b.Accounts:
Airtech Pvt Ltd is maintaining separate department for the purchase of accounting ―Tally soft
ware package is used for accounting ―general banking transaction are carried out through SBI.
The company has recently decided to bring the SAP based application software for its accounting
in order to reduce the time consumption for accounts and for better performance.
Responsibilities of account department:

 Preparation of cash transaction, vouchers, daybook, checking cash disbursement etc.
 Distribution of salary and wages
 Maintaining Cash book
 Preparing monthly report for operational, Store, Sales, Raw materials and income
expenditure.

4.3C.Marketing Department:
Marketing department plays an important role in every organization. The hierarchy of the
department is as follows in the below diagram
Marketing Manager
Assistant Manager Customer Care Manager
Marketing Executive Service Engineer
Representative Dealers
Functions of marketing department:
 Marketing department carries out B2B marketing for its Products.

 It generates orders for the company for producing goods.
 To develop the marketing strategy to compete with the competitors.
 To assist the existing customer in solving their problems when problem arise.
 To adopt modern marketing plans and developing new customers
 Taking part in trade shows and online marketing.

As we know that the marketing of a consumer product is different from that of the industrial
products like chucks, cylinders, jaws, gear box, motor cover other parts etc. The people who
work at Airtech are highly technically skilled and need to have thorough knowledge of the
product, since it is business to business marketing the amount of single product may vary from
15000 rupees to up to 10 lakhs rupees depending on the technical specification of the chuck and
cylinder. The volume may be less but it costs more. The sales person or marketing persons need
to give more importance to the technical specification of the product.
Hence the marketing department gives thorough training and development to its people, provides
discount to its customer, compared to the competitors. Department also develops then a
competitive strategy by taking suggestions from the top management.
While Budget allocation determination for Advertising they use competitive parity method
which involves following steps. This method involves setting budgets to match competitors’
outlays and funds. In this method, the company monitors competitors’ advertising and follows it.
This method is generally used in markets in which advertising is heavier and it is felt absolutely
important to the companies not to be left behind the competitors.
The market department follows its own customer satisfaction analysis for its products by getting
feedback from their customers through survey on line or printed form. They analyze it and see
the satisfaction level of their customer and further steps to improve it. Every year they spend 2 to
5% for promotion of their products.

4.3d.Design and development:

The main objective is to design the product and help the customer in solving their design
problems, issues of the product design. This department is continuously involved in designing
and development of the product.
In the design team it consists of 10 members.
Software Used: AUTO-CAD.
Cost of software: 30 lakhs.
They also involved in research and development of new products in ongoing process.

4.3e.Production department:
The production department is involved in producing of the goods designed and required by the
customer. The majority of the employees belong to this department.
The department had initially started with 8 machines and few people, which have now, have
more than 200 workers .The Company has upgraded as per the requirements in implementing
technology in the production department, and also to compete with its competitors. As I have
mentioned regarding the detail description of product profile, I would like to give few important
aspects which was implemented in the department. Presently the company is supplying gear box,
other parts to TATA marc polo, TATA motors, Dugong etc.
The department has a new ASU plant which is fully automated machines and High pressure di-
casting is being done, with 3 other MILI-tap machines for drilling, tapping etc. This new plant
was started in the year 2012 by investing around 25corers.
Following diagram has hierarchy for production department
Production Department
Production of Chucks and Assembly Chuckmatic

cylinders manger Manager
Manager
Production Production Production

assistant manger assistant manger assistant manger
Supervisor Supervisor Supervisor
Operators Operators Operators

The department has 3 sub divisions which consist of head of chuckmatic, Assembly, Chucks and
cylinders department.
1) Production Manager
He is head of the department who guide the workers in production according to the needs of
the customers which is designs the products.
2) Assistant manager
He is assisting the manager in looking of overall department functions, audits etc.
3) Supervisor
There duty is to look after the production in particular shift and maintaining the parameters for
that. Supervisors is a person who supervises the workers work and sees whether the work is
going on properly or not and also takes care that raw materials is providing properly or not.
4) Operators
Operators are the persons who operates the machine manually or semi automatic. These people
are given training by the department. These people do production according to the customer’s
need which is designed by the designers.

The following diagram show s the process flow of production department for chucks and
cylinders
Raw Material
Bar Cutting Forging Casting
Machine
Turning Milling Drilling Heating Grinding Inspection
Assembly
Inspection Testing & Marketing Stores

Evaluation
Packing

4.3f.Planning and purchase:

The company gets the order from various suppliers as well as from perspective customers, after
seeing to its terms and cost aspects planning department issues acceptance order. Planning
process is done with the help of following diagram
Customer Representative
Product specification
Status of raw materials
Production
Outsourcing
Raw material is classified into four categories at Airtech private Ltd, they are
1. Raw material
This consists of the basis material which is raw in stake like carbon steel and alloy steel etc.
2. Components
These are sub parts which are required as a part in the final product like screw, nuts bolts etc.
also comes carbon steel and alloy steel screws.

3. Consumable
These are the inputs consumed while carrying out production such as oil, lubricants etc.
4. Packing material
These are the material used for the final packing of products. Purchase department procure
the raw material for standard products one month before but for special products it follows
just in time technique.
5. Suppliers
Airtech private limited gets raw material from the 50 suppliers few of them are as follows
1) Hitech forge, Banglore.

2) Rukmani forge, Banglore.
3) Sona steels, Mumbai.
4) Ganesh Metals,Hubli
In future the company is implementing ERP and SAP software for its stores department.

4.3g.Quality department:
Main function of this department is to check the design/ drawings; this is very important
department from quality point of view because quality and reliability are the hall mark of Airtech
Pvt. Ltd. Products. Airtech Pvt. Ltd. Adopts a system of continuous check and inspection right
from raw materials to finished product stage. In case of out sourced products the department
checks the products if the quality is not up to the mark then it are rejected. Development and
implement of new technology for quality checking of products is under process.
4.3h.Stores Department:
To establish a proper system for receipt, storage and issue of materials. The procedure is
applicable to both main stores and finished stores. Procedure: When the material is received the
sum is tallied with the delivery challan/invoice/cash memos/credit memos/placing slips etc .In
the absence of purchase order or any other document from sub contractor, the authorizes by
issuing the inter departmental note, the details received is first entire in inward register.
Subsequently after the completion of inward inspection the material both accepted and rejected
both comes at stores along with material receipt the material is stored at desired place.

Chapter 5
TQM Practices
In
Airtech

5.1Introduction:
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: Everyone 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.
5.1 a. Management:
1. Decision in a planned way.

2. To maintain existing lever of quality.
3. To improve existing lever of quality.
4. Effective utilization of resource.
Total Quality Management features centrally the customer-supplier interfaces, (external and
internal customers and suppliers). A number of processes sit at each interface. Central also is an
organizational commitment to quality, and the importance of communicating this quality
commitment, together with the acknowledgement that the right organizational culture is essential
for effective Total Quality Management. More about the fundamentals and structures of the
TQM model, including the people, processes and systems in the organization

Processes - Understanding Processes and Methods for Process Improvement

Understanding processes is essential before attempt is made to improve them. This is a central
aspect to Total Quality Management, and also to more modern quality and process improvement
interpretations and models such as Six Sigma. More about Total Quality Management process
and process improvement methods
5.1b.Concepts of TQM followed:
a) Principles of TQM
 Delight the customer

 Management by fact
 People based management
 Continuous improvement
 Strong leadership
 Quality system measure& record
 Team work, Team accountable, correct problem
 People oriented technology, speed.
b) Quality Process Improvement Tools and Techniques
 A wide range of tools and techniques is used for identifying, measuring, prioritising and
improving processes which are critical to quality. Again these ideas and methods feature
prominently in modern interpretations of Total Quality Management methodology, such
as Six Sigma. These process improvement tools and techniques include: DRIVE (Define,
Review, Identify, Verify, Execute), process mapping, flow-charting, force field analysis,
cause and effect, brainstorming, Pareto analysis, Statistical Process Control (SPC),
Control charts, bar charts, 'dot plot' and tally charts, check-sheets, scatter diagrams,
matrix analysis, histograms.
 People are a fundamental component within any successfully developing organization.
Take away the people and the organization is nothing. Take away the people's
motivation, commitment and ability to work together in well-organised teams, and again,

the organization is nothing. Conversely, inspire the people to work well, creatively,
productively, and the organization can fly. Logically therefore, the development and
proper utilization of people are vital to the success of all quality management initiatives.
There are a wide range of models that are used in selecting, assessing, training and
developing and motivating people, among which are classical models such as Belbin,
Myers Briggs Type Indicator (see the personality models section), Bruce Tuckman's
'Forming, Storming, Norman, Performing' model, John Adair's Action Centred
Leadership model.
c) KAIZEN
 Kaizen is a very significant concept within quality management and deserves specific
explanation. Kaizen (usually pronounced 'kyzan' or 'kyzen' in the western world) is a
Japanese word, commonly translated to mean 'continuous improvement'. Kaizen is a core
principle of quality management generally, and specifically within the methods of Total
Quality Management and 'Lean Manufacturing'. Originally developed and applied by
Japanese industry and manufacturing in the 1950s and 60s, Kaizen continues to be a
successful philosophical and practical aspect of some of the best known Japanese
corporations, and has for many years since been interpreted and adopted by 'western'
organizations all over the world. Kaizen is a way of thinking, working and behaving,
embedded in the philosophy and values of the organization. Kaizen should be 'lived'
rather than imposed or tolerated, at all levels. The aims of a Kaizen organization are
typically defined as:
 To be profitable, stable, sustainable and innovative.
 To eliminate waste of time, money, materials, resources and effort and increase
productivity.
 To make incremental improvements to systems, processes and activities before problems

arise rather than correcting them after the event.

 To create a harmonious and dynamic organization where every employee participates and
is valued.
Key concepts of Kaizen:
 Every is a key word in Kaizen: improving everything that everyone does in every aspect
of the organization in every department, every minute of every day.
 Evolution rather than revolution: continually making small, 1% improvements to 100

things is more effective, less disruptive and more sustainable than improving one thing by
100% when the need becomes unavoidable.
 Everyone involved in a process or activity, however apparently insignificant, has

valuable knowledge and participates in a working team or Kaizen group (see also Quality
Circles below).
 Everyone is expected to participate, analyzing, providing feedback and suggesting

improvements to their area of work.
 Every employee is empowered to participate fully in the improvement process: taking

responsibility, checking and coordinating their own activities. Management practice
enables and facilitates this.
 Every employee is involved in the running of the company, and is trained and informed
about the company. This encourages commitment and interest, leading to fulfillment and
job satisfaction.
Kaizen teams use analytical tools and techniques to review systems and look for ways to
improve (see Quality Tools below). At its best, Kaizen is a carefully nurtured philosophy that
works smoothly and steadily, and which helps to align 'hard' organizational inputs and aims
(especially in process-driven environments), with 'soft' management issues such as
motivation and empowerment. Like any methodology however, poor interpretation and
implementation can limit the usefulness of Kaizen practices, or worse cause them to be
counter-productive.

Kaizen is unsuccessful typically where:
 Kaizen methods are added to an existing failing structure, without fixing the basic
structure and philosophy.
 Kaizen is poorly integrated with processes and people's thinking.
 Training is inadequate.
 Executive/leadership doesn't understand or support Kaizen.
 Employees and managers regard Kaizen as some form of imposed procedure, lacking
meaningful purpose.
Kaizen works best when it is 'owned' by people, who see the concept as both empowering of
individuals and teams, and a truly practical way to improve quality and performance, and thereby
job satisfaction and reward. As ever, such initiatives depend heavily on commitment from above,
critically.
 To encourage and support Kaizen.
 To ensure improvements produce not only better productivity and profit for the
organization, but also better recognition and reward and other positive benefits for
employees, whose involvement drives the change and improvement in the first place.
d) Quality tools:
 'Quality Tools' refers to tools and techniques used in support of Kaizen and other quality
improvement or quality management programmers’ and philosophies.
 Based mainly on statistical and manufacturing process tools, Quality Tools are used at all
levels of an organization - typically in 'quality circles' or Kaizen work teams to analyze
and review activities and uncover inefficiencies.

The main Quality Tools are:
 The '5 Whys' - asking 'Why?' at least five times to uncover root cause of a problem.
 Flowcharts - boxes and arrows method of examining activities, potentially used

in brainstorming, also found in business process modeling.
 Fishbone/Ishikawa Diagrams - fishbone-structured diagram for identifying cause/effect

patterns, in which primary categories are generally pre-determined according to context.
See fishbone diagram and usage examples for project management.
 Run Charts - a graph which plots data/change along a timeline.
 Pareto Charts - a line and bar graph displaying cause/effect ratios, especially biggest
relative cause, based on Pareto theory.
 Histograms - a bar graph displaying data in simple categories which together account for
a total.
 Checklists/Check sheets - pre-formatted lists for noting incidence, frequency, etc.,

according to known useful criteria.
 Control/Shewhart Charts - a standard pattern of performance/time for a given process,

often in Run Chart format, which acts as a template to check conformance and deviation.
 Scatter Diagram/Scatter plot - a graph which plots points (typically very many individual
instances) according to two variables, which produces a useful visual indication of the
relationship between the two variables.
 Some quality tools, like flowcharts and checklists, have become part of mainstream
management.
Others tools such as the Fishbone diagram have stayed quite specific to the engineering and
manufacturing disciplines, which traditionally have a strong focus and expertise in Kaizen, 'Lean'
management and other quality management methodologies.

5.3c.Quality Circles:
Quality circles, similar to Kaizen teams, are a key part of any continuous improvement programs
me. In this context the word 'circle' refers to a team of people. Teams or small groups (the
circles) meet to analyze, and review working practices with a view to making suggestions for
improvement in their work and the systems. As with many Quality Tools, the specific use of
Quality Circles is chiefly concentrated among manufacturing and engineering organizations or in
technical departments of this sort. The term Quality Circles may be found in more general use
outside of these traditional areas, in which case the name tends to imply or symbolize that teams
are working in an empowered, cooperative way, especially focused on problem-solving and
improvements, rather than a strict adherence to technical Total Quality Management or related
processes. This article contains a summary of implementation of TQM improvement projects in
the Manufacturing and Service Sectors over the last 5 years. It highlights difficulties encountered
in using specific improvement tools as well as handling of the team members.

Chapter 6
Analysis and
interpretations

6.0 Analysis for Buhler machine (High pressure die-casting machine)
In order to find out the application of control charts, I have taken the production readings from
the reports (secondary sources). The machine produces Front gear box, Rear gear box and other
parts. The main customer for the above products TATA motors, TATA Marco polo, Dugong etc.
The above data is used for plotting control charts for above two products to analyze the
production performance & its effects .Graphs are plotted using MS-excel
6.1 Front head gear box- FH801:

The data was collected from the 25 days production in all 3 shifts of a day, and how it can be
helpful for overcoming production problems .In order to find the solution of ongoing production
in Airtech new aluminum casting Buhler machine manufacturing. The company is facing many
process problems and to control the defects in production per day , per shift the control charts
are very helpful in determining it and taking corrective actions on it increasing the quality of
products and reduce the wastage of cost, reducing the defective products. In order to determine
this data of Aluminum casting machine was being used (BUHLER) by taking readings for front
and rear gear box production of Tata Motors as a customer for this product. The target of this
machine for production of FH801-front gear box production and Rear gear box production-1004
parts last 16 days and above data was taken for plotting control charts and how its application
can help the company to overcome their problems of production.
FP801-Front gear box production in aluminum casting

Data collected from records of production reports of Buhler aluminum casting machine
net net
Date shift production Cold rejection Rejection production
23-6-18 c 134 3 1 130
B 0 0 0 0
A 0 0 0 0
22-6-18 c 209 2 3 204
B 178 2 5 171
A 136 7 7 122
21-6-18 0
C 196 1 3 192
B 202 2 5 195

A 193 2 2 189
20-6-18 0
C 204 0 2 202
B 35 10 6 19
9-6-18 0
C 71 3 0 68
B 112 7 5 100
A 186 2 2 182
8-6-18 C 0 0 0 0
B 113 7 4 102
A 76 2 1 73
7-6-18 0
C 0 0 0 0
B 93 6 3 84
A 5 4 1 0
6-6-18 0
C 0
B 56 11 1 44
A 206 2 204
19-5-18 C 0 0 0 0
B 221 2 2 217
A 210 0 1 209
18-5-18 C 0 0 0 0
B 158 1 2 155
A 226 2 224
0
17-5-18 C 188 5 4 179
B 93 4 89
A 233 233
0
16-5-18 0
C 196 2 4 190
B 143 4 3 136
A 18 5 2 11
15-5-18 C 186 2 2 182
B 113 7 4 102
A 76 2 1 73
0
21-4-18 0
C 0 0 0 0
B 0 0 0 0

A 143 4 2 137
20-4-18 C 200 2 3 195
B 183 2 4 177
A 192 2 4 186
19-4-18 C 200 1 2 197
B 167 3 3 161
A 157 4 2 151
18-4-18 C 207 1 4 202
B 159 4 5 150
A 201 1 3 197
17-4-18 C 198 3 195
B 195 2 8 185
A 177 2 4 171
16-4-18 C 198 12 186
B 151 10 9 132
A 5 5 0
10-3-18 C 121 2 3 116
B 144 4 5 135
A 166 2 7 157
9-3-18 C 179 2 177
B 158 6 4 148
A 166 2 7 157
8-3-18 C 0
B 64 5 1 58
A 153 4 149
0
7-3-18 C 197 2 195
B 184 4 3 177
A 145 1 3 141
6-3-18 0
C 193 1 3 189
B 200 1 3 196
A 0 0 0 0
Table no.6.1.Front gear box production data of Buhler machine

1) FH801-Front gear box production in aluminum casting: Data collected from records of
production reports of Buhler aluminum casting machine
A. X-Bar chart:
In industrial statistics, the X-bar chart is a type of Shewhart control chart that is used to monitor
the arithmetic means of successive samples of constant size, n. This type of control chart is used
for characteristics that can be measured on a continuous scale, such as weight, temperature,
thickness etc. For example, one might take a sample of 5 shafts from production every hour,
measure the diameter of each, and then plot, for each sample, the average of the five diameter
values on the chart. For the purposes of control limit calculation, the sample means are assumed
to be normally distributed, an assumption justified by the Central Limit Theorem.
By using above collected data we have plotted the X-bar chart for FH801, in order to determine
the weather the process is under control or not can be analyzed
Formulas used for calculation are as follows:
a. X-bar (central line) =X1+X2+X3/3
∑ 𝑥𝑖 −𝑥𝑏𝑎𝑟 2
b. Standard deviation = =
𝑛−1
c. Xdbar=average of X-bar
d. UCL=Xdbar+3standard deviation
e. LCL= Xdbar-3standard deviation
Days XA XB XC X bar CL(Xdbar) UCL LCL

1 0 0 1 0.33 2.67 7.92 -2.58
2 7 5 3 5.00 2.67 7.92 -2.58
3 2 5 3 3.33 2.67 7.92 -2.58
4 0 6 2 2.67 2.67 7.92 -2.58
5 2 5 0 2.33 2.67 7.92 -2.58
6 1 4 0 1.67 2.67 7.92 -2.58
7 1 3 0 1.33 2.67 7.92 -2.58
8 2 1 0 1.00 2.67 7.92 -2.58
9 0 2 1 1.00 2.67 7.92 -2.58
10 2 2 0 1.33 2.67 7.92 -2.58
11 0 0 4 1.33 2.67 7.92 -2.58
12 2 3 4 3.00 2.67 7.92 -2.58

13 1 4 2 2.33 2.67 7.92 -2.58

14 2 0 0 0.67 2.67 7.92 -2.58
15 4 4 3 3.67 2.67 7.92 -2.58
16 2 3 2 2.33 2.67 7.92 -2.58
17 3 5 4 4.00 2.67 7.92 -2.58
18 4 8 4 5.33 2.67 7.92 -2.58
19 0 9 12 7.00 2.67 7.92 -2.58
20 7 5 3 5.00 2.67 7.92 -2.58
21 7 4 2 4.33 2.67 7.92 -2.58
22 0 1 0 0.33 2.67 7.92 -2.58
23 3 3 2 2.67 2.67 7.92 -2.58
24 3 3 0 2.00 2.67 7.92 -2.58
Table no 6.2.Calculation for front gear box production X-bar chart
X -Bar chart for determining the process control of Front gear X bar
box production and defective pieces (Rejection) in Bhuler machine
CL(Xdbar)
UCL
LCL
9.00
Upper control limit
7.00 7.00
Mean
5.33
5.00 5.00 5.00
4.33
4.00
3.67
3.33
3.00 3.00 Central line
2.67 2.67
2.33 2.33 2.33
2.00
1.67
1.33 1.331.33
1.00 1.001.00
0.67
0.33 0.33
-1.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Lower control
limit
-3.00
Sample no
Graph no 6.1. X -Bar chart for determining the process control of Front gear box production

Interpretation:
From the above graph it has been observed that the number of rejections for front gear box
production the process is under control from the above chart.
B. R-chart
The R-chart shows sample ranges (difference between the largest and the smallest values in the
sample), while the s-chart shows the samples' standard deviation. The R-chart was preferred in
times when calculations were performed manually, as the range is far easier to calculate than the
standard deviation; with the advent of computers, ease of calculation ceased to be an issue, and
the s-chart is preferred these days, as it is statistically more meaningful and efficient. Depending
on the type of variation chart used, the average sample range or the average sample standard
deviation is used to derive the R chart's control limits.
Formulae:
a. Range =Max-Min of samples

b. R-bar=average of all range values
c. R-chart factor for sample of size 3 is LCL from chart is =0 and ULC=2.575
d. UCL=R-bar*D4
e. LCL=R-bar*D3
Days XA XB XC Range Rbar UCL LCL

1 0 0 1 1 3.21 8.25 0
2 7 5 3 4 3.21 8.25 0
3 2 5 3 3 3.21 8.25 0
4 0 6 2 6 3.21 8.25 0
5 2 5 0 5 3.21 8.25 0
6 1 4 0 4 3.21 8.25 0
7 1 3 0 3 3.21 8.25 0
8 2 1 0 2 3.21 8.25 0
9 0 2 1 2 3.21 8.25 0
10 2 2 0 2 3.21 8.25 0
11 0 0 4 4 3.21 8.25 0
12 2 3 4 2 3.21 8.25 0
13 1 4 2 3 3.21 8.25 0
14 2 0 0 2 3.21 8.25 0
15 4 4 3 1 3.21 8.25 0

16 2 3 2 1 3.21 8.25 0
17 3 5 4 2 3.21 8.25 0
18 4 8 4 4 3.21 8.25 0
19 0 9 12 12 3.21 8.25 0
20 7 5 3 4 3.21 8.25 0
21 7 4 2 5 3.21 8.25 0
22 0 1 0 1 3.21 8.25 0
23 3 3 2 1 3.21 8.25 0
24 3 3 0 3 3.21 8.25 0
Table no 6.3.Calculation for front gear box production R- chart
Range
R -Bar chart for determining the process control of Front gear box
Rbar
production and defective peices(Rejection ) in Bhuler machine of
aluminium casting UCL
LCL
14
12 12
10
Upper control limit
Rang
8
e
6 6
5 Central line 5
4 4 4 4 4 4
3 3 3 3
2 2 2 2 2 2 2
1 1 1 1 1
0 Lower control limit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Sample no
Graph no 6.2. R- Chart for determining the process control of front gear box production

Interpretation:
From this chart also we can observe that the process is under control for front gear box
production and one outlier is there which signifies that one of the readings is above the UCL. For
which the proper measures and correction in Factors has been done.
2) RP1004-Rear part production in aluminum casting: Data collected from Buhler aluminum
high pressure die-casting machine
net Cold
Date Shift production rejection Rejection net production
15-6-18 C 76 76
B 258 3 4 251
A 265 1 1 263
0
14-6-18 C 284 2 1 281
B 255 2 6 247
A 209 1 2 206
13-6-18 C 253 2 2 249
B 226 2 1 223
A 244 1 4 239
12-6-18 C 284 2 2 280
B 233 2 1 230
A 259 1 4 254
9-6-18 C 136 9 6 121
B 0 0 0 0
A 0 0 0 0
24-5-18 c 0 0 0 0
B 209 2 3 204
A 110 5 2 103
23-5-18
C 2 2 0 0
B 103 0 0 103
A 285 2 0 283
22-5-18 C 297 3 0 294
B 300 4 2 294
A 267 1 2 264
21-5-18 C 287 287
B 235 6 5 224
A 23 5 2 16
26-4-18
C 101 1 2 98

B 238 4 7 227
A 222 5 1 216
25-4-18 C 273 1 5 267
B 223 1 4 218
A 267 1 4 262
24-4-18 C 271 4 267
B 280 4 276
A 167 6 9 152
23-4-18 C 233 2 1 230
B 239 3 5 231
A 32 4 3 25
21-4-18 C 271 1 4 266
B 164 4 2 158
A 0 0 0 0
20-3-18 C 0 0 0 0
B 122 2 1 119
A 282 1 5 276
Table no 6.4. Rear gear box production data of Buhler machine
A.X-Bar chart
In industrial statistics, the X-bar chart is a type of Shewhart control chart that is used to monitor
the arithmetic means of successive samples of constant size, n. This type of control chart is used
for characteristics that can be measured on a continuous scale, such as weight, temperature,
thickness etc. For example, one might take a sample of 5 shafts from production every hour,
measure the diameter of each, and then plot, for each sample, the average of the five diameter
values on the chart. For the purposes of control limit calculation, the sample means are assumed
to be normally distributed, an assumption justified by the Central Limit Theorem. By using
above collected data we have plotted the X-bar chart for RP1004 in order to determine the
weather the process is under control or not. The formulas are similar as mentioned for FH801-
front gear box calculation.

X
bar(sample CL(XD
Days XA XB XC mean) bar) UCL LCL
1 265 258 76 199.67 189.35 385.93 -7.23
2 209 255 284 249.33 189.35 385.93 -7.23
3 244 226 253 241.00 189.35 385.93 -7.23
4 259 233 284 258.67 189.35 385.93 -7.23
5 88 244 272 201.33 189.35 385.93 -7.23
6 0 0 136 45.33 189.35 385.93 -7.23
7 110 209 0 106.33 189.35 385.93 -7.23
8 285 103 2 130.00 189.35 385.93 -7.23
9 267 300 297 288.00 189.35 385.93 -7.23
10 23 235 287 181.67 189.35 385.93 -7.23
11 222 238 101 187.00 189.35 385.93 -7.23
12 267 223 273 254.33 189.35 385.93 -7.23
13 167 280 271 239.33 189.35 385.93 -7.23
14 32 239 233 168.00 189.35 385.93 -7.23
15 0 164 271 145.00 189.35 385.93 -7.23
16 282 122 0 134.67 189.35 385.93 -7.23
Table no 6.5. Calculation for Rear gear box production X-bar chart

X bar(sample mean)
X -Bar chart for determining the process control of Rear
CL(XD bar)
gear box production in Bhuler machine
UCL
LCL
390.00
Upper control limit

340.00
290.00 288.00
258.67 254.33
249.33
240.00 241.00 239.33
Mean
Central line
199.67 201.33
190.00
181.67187.00
168.00
140.00 145.00
130.00 134.67
106.33
90.00
40.00 45.33
Lower control limit
-10.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Sample no
Graph no 6.3. X -Bar chart for determining the process control of Rear gear box production
Interpretation:
From this chart also we can observe that the process is under control for front gear box
production.

B. R-chart
The R-chart shows sample ranges (difference between the largest and the smallest values in the
sample), while the s-chart shows the samples' standard deviation. The R-chart was preferred in
times when calculations were performed manually, as the range is far easier to calculate than the
standard deviation; with the advent of computers, ease of calculation ceased to be an issue, and
the s-chart is preferred these days, as it is statistically more meaningful and efficient. Depending
on the type of variation chart used, the average sample range or the average sample standard
deviation is used to derive the X-bar chart's control limits.
Days XA XB XC Range Rbar UCL LCL
1 265 258 76 189 156.94 404.11 0
2 209 255 284 75 156.94 404.11 0
3 244 226 253 27 156.94 404.11 0
4 259 233 284 51 156.94 404.11 0
5 88 244 272 184 156.94 404.11 0
6 0 0 136 136 156.94 404.11 0
7 110 209 0 209 156.94 404.11 0
8 285 103 2 283 156.94 404.11 0
9 267 300 297 33 156.94 404.11 0
10 23 235 287 264 156.94 404.11 0
11 222 238 101 137 156.94 404.11 0
12 267 223 273 50 156.94 404.11 0
13 167 280 271 113 156.94 404.11 0
14 32 239 233 207 156.94 404.11 0
15 0 164 271 271 156.94 404.11 0
16 282 122 0 282 156.94 404.11 0
Table no 6.6. Calculation for Rear gear box production R chart

R -Bar chart for determining the process control of Rear gear box Range
production in Bhuler machine of aluminium casting Rbar
UCL
LCL
400
Upper control limit
350
300
283 282
264 271
250
Range
209 207
200
184 central line
150
136 137
113
100
75
50 51 50
27 33 Lower control limit
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Sample no
Graph no 6.4. R-chart for determining the process control of Rear gear box production.
Interpretation:
From this chart also we can observe that the process is under control for rear gear box
production. Since the number of samples determined are within Upper control limit.

3) Control charts:
a) NP chart for FH801-front gear box production
Days Sample (n) defective( np) CL(nP0) UCL LCL

1 900 3 2 6.238 -2.238
2 900 11 2 6.238 -2.238
3 900 10 2 6.238 -2.238
4 900 12 2 6.238 -2.238
5 900 9 2 6.238 -2.238
6 900 10 2 6.238 -2.238
7 900 11 2 6.238 -2.238
8 900 2 2 6.238 -2.238
9 900 1 2 6.238 -2.238
10 900 9 2 6.238 -2.238
11 900 11 2 6.238 -2.238
12 900 11 2 6.238 -2.238
13 900 4 2 6.238 -2.238
14 900 6 2 6.238 -2.238
15 900 8 2 6.238 -2.238
16 900 6 2 6.238 -2.238
17 900 4 2 6.238 -2.238
18 900 15 2 6.238 -2.238
19 900 8 2 6.238 -2.238
20 900 8 2 6.238 -2.238
21 900 9 2 6.238 -2.238
22 900 5 2 6.238 -2.238
23 900 2 2 6.238 -2.238
Table no 6.7. Calculation for NP control chart front gear box production
Formulas
a. 𝑝 = ∑ 𝑑/𝑛𝑘
b. 𝐶𝐿 = 𝑛𝑝
c. 𝑈𝐶𝐿 = 𝑛𝑝 + 3 𝑛𝑝(1 − 𝑝 )
d. 𝐿𝐶𝐿 = 𝑛𝑝 − 3 𝑛𝑝(1 − 𝑝 )

defective( np)
CL(nP0)
NP Chart for front gear box production of Buhler machine UCL
LCL
Number of non conformance in 900 sample
15 15
13
12
11 11 11 11 11
10 10
9 9 9 9
8 8 8
7 UCL
6 6
5 5
4 4
3 3
CL
2 2
1 1
-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
LCL
-3
Sub groups
Graph no 6.5. NP-chart for determining the process control of Front gear box production
Interpretation:
From this above graph it has been analyzed that the process for front gear box production of
High pressure die-casting machine is out of control, number of rejections is more which is loss
for the company, and increase in Cost of production /unit in rupees as a burden, wastage has
increased.

b) NP chart for Rear gear box production
defective(
Days Sample (n) np) CL(nP0) UCL LCL
1 900 4 6.5625 14.220 -1.095
2 900 5 6.5625 14.220 -1.095
3 900 5 6.5625 14.220 -1.095
4 900 5 6.5625 14.220 -1.095
5 900 11 6.5625 14.220 -1.095
6 900 9 6.5625 14.220 -1.095
7 900 7 6.5625 14.220 -1.095
8 900 8 6.5625 14.220 -1.095
9 900 4 6.5625 14.220 -1.095
10 900 11 6.5625 14.220 -1.095
11 900 10 6.5625 14.220 -1.095
12 900 3 6.5625 14.220 -1.095
13 900 6 6.5625 14.220 -1.095
14 900 9 6.5625 14.220 -1.095
15 900 5 6.5625 14.220 -1.095
16 900 3 6.5625 14.220 -1.095
Table no 6.8. Calculation for NP control chart Rear gear box production

defective( np)
NP Chart for Rear gear box production of Buhler machine CL(nP0)
UCL
LCL
15
13 UCL
11 11 11
conformance in 900
10
Number of non
9 9 9
8
sample
7 7
6
CL
5 5 5 5 5
4 4
3 3 3
-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 LCL
-3
Sub groups
Graph no 6.6. NP-chart for determining the process control of Rear gear box production.
Interpretation:
From this above graph it has been analyzed that the process for Rear gear box production of
High pressure die-casting machine is in control, number of rejections is less which is good sign
for the company, and increase in achieving maximum customer satisfaction, wastage has
decreased.

6.2. Cost of quality:

COQ (Cost of quality analysis) for the above mentioned 2 products for 1st and 2nd stage of
production from the data collected it consists of all the production costs. COQ curves for the first
stage of production for
a) Front gear box production FH801
Cost of
production First stage
/unit in Defective failure cost in
SI.No Days rupees components rupees
1 1 125 3 375
2 2 125 11 1375
3 3 125 10 1250
4 4 125 12 1500
5 5 125 9 1125
6 6 125 10 1250
7 7 125 11 1375
8 8 125 2 250
9 9 125 1 125
10 10 125 9 1125
11 11 125 11 1375
12 12 125 11 1375
13 13 125 4 500
14 14 125 6 750
15 15 125 8 1000
16 16 125 6 750
17 17 125 4 500
18 18 125 15 1875
19 19 125 8 1000
20 20 125 8 1000
21 21 125 9 1125
22 22 125 5 625
23 23 125 2 250
Table no 6.9. Calculation for first stage cost analysis of front gear box

Cost of quality analysis for front gear box production

internal failure cost
2000
1875
1800
1600
1500
internal fialure cost in rupees
1400 1375 1375 13751375

1250 1250
1200
1125 1125 1125
1000 1000 10001000
800
750 750
600 625
500 500
400 375
250 250
200
125
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Days
Graph no 6.7. Cost of quality analysis for the first stage of front gear box production
Interpretation:
From this plot we can see that the cost is raising as the number of defective component number is
increasing and decreasing since cost is associated with it. The amount of failure cost is more, in
order to recue this cost the production parameters needs to be followed, maintained. Like
maintaining temperature inside the HPDC during casting to it.

b) Rear gear box productionRP1004
Cost of
production First stage
/unit in Defective failure cost in
SI.No Days rupees components rupees
1 1 115 4 460
2 2 115 5 575
3 3 115 5 575
4 4 115 5 575
5 5 115 11 1265
6 6 115 9 1035
7 7 115 7 805
8 8 115 8 920
9 9 115 4 460
10 10 115 11 1265
11 11 115 10 1150
12 12 115 3 345
13 13 115 6 690
14 14 115 9 1035
15 15 115 5 575
16 16 115 3 345
Table no 6.10. Calculation for first stage cost analysis of Rear gear box

Cost of quality analysis for Rear gear box production

internal failure cost
1400
1265 1265
1200
Internal failure cost in
1150
1035 1035
1000
920
rupees
800 805
690
600 575 575 575 575
460 460
400
345 345
200
0
0 2 4 6 8 10 12 14 16 18
Days
Graph no 6.8. Cost of quality analysis for the first stage of Rear gear box production
Interpretation:
increasing and decreasing since cost is associated with it, the company it has to take care of
reducing the defective components.
a) Second stage cost of quality analysis for FH801 and RP1004 (front gear box and Rear gear
box production)
Cost of
production
/unit in Defective Second stage
SI.No Days rupees components cost in rupees
1 1 150 2 300
2 2 150 4 600
3 3 150 3 450
4 4 150 1 150

5 5 150 5 750
6 6 150 4 600
7 7 150 4 600
8 8 150 5 750
9 9 150 5 750
10 10 150 6 900
11 11 150 2 300
12 12 150 5 750
13 13 150 2 300
14 14 150 3 450
15 15 150 4 600
16 16 150 3 450
17 17 150 4 600
18 18 150 2 300
19 19 150 2 300
20 20 150 4 600
21 21 150 3 450
22 22 150 4 600
23 23 150 5 750
Table no 6.11. Calculation for second stage for cost analysis of front gear box

cost of quality analysis for FH801 -second stage

second stage cost
1000
900 900
800
750 750750 750 750
700
600 600 600600 600 600 600 600
Cost in
rupees
500
450 450 450 450
400
300 300 300 300 300300
200
150
100
0
0 5 10 15 20 25
Days
Graph no 6.9. Cost of quality analysis for the second stage of front gear box production
Interpretation:
reducing the defective components, it is important to control or detect in the first stage of
production for reducing the cost.

b) Second stage cost of quality analysis for RP1004 ( Rear gear box production)
Cost of
production /unit Defective Second stage cost in
SI.No Days in rupees components Rupees
1 1 140 7 980
2 2 140 5 700
3 3 140 4 560
4 4 140 2 280
5 5 140 3 420
6 6 140 5 700
7 7 140 6 840
8 8 140 4 560
9 9 140 2 280
10 10 140 1 140
11 11 140 3 420
12 12 140 4 560
13 13 140 2 280
14 14 140 3 420
15 15 140 4 560
16 16 140 1 140
Table no 6.12. Calculation for second stage for cost analysis of Rear gear box

Cost of quality analysis for RH1004-second stage

second…
1200
1000 980
840
800
700 700
Cost in
rupees
600
560 560 560 560
400 420 420 420
280 280 280

200
140 140
0
0 2 4 6 8 10 12 14 16 18
Days
Graph no 6.10. Cost of quality analysis for the second stage of Rear gear box production
Interpretation:
reducing the defective components, it is important to control or detect in the first stage of
production for reducing the cost.
The internal failure cost needs to be controlled in first stage by applying TQM techniques by
detecting the defective components in first stage and avoiding further production losses, costs.

6.4. PARETO chart analysis for MILITAP:

For plotting of this and its analysis was done by taking data from its production reports. Since
from this analysis of cost it was not clear for determining which process was having a problem,
hence, I have used the PARETO chart for that for the readings obtained from the MILITAP
machines and operations.
blow
Days defects bore size Tap drill unclean hole crack
1 7 3 2 1 0 1
2 5 1 0 1 2 1
3 4 1 0 2 0 1
4 2 0 0 1 1 0
5 3 0 1 0 0 1
6 5 4 0 0 0 1
7 6 0 0 1 3 2
8 4 0 1 3 0 0
9 2 0 2 0 0 0
10 1 0 0 1 0 0
11 3 0 2 0 0 1
12 4 0 0 1 3 0
13 2 0 0 2 0 0
14 3 0 2 0 1 0
15 4 0 3 0 1 0
16 1 0 0 0 1 0
Table no 6.13. Data for PARETO analysis from MILITAP machine

Reasons Defects Cumulative cumulative %

Unclean 13 13 24%
Tap drill 13 26 47%
Blow hole 12 38 69%
Bore size 9 47 85%
Crack 8 55 100%
55
Table no 6.14. Calculation for PARETO analysis
Defects
PARETO CHART ANALYSIS for MILITAP Machine cumilative %
14 120%
12 100%
10
80%
8
60%
6
40%
4
20%
2
0 0%
Unclean Tapdrill Blow hole Bore size Crack
Graph no 6.11. PARETO Chart for MILITAP machine
Interpretation:
From the pare to chart it can be seen that the main cause for defective components are the
unclean surface, Tap drills, Blow holes ,Bore size, Cracks in the produced parts are the reason
for production of defective components. The company has to take care of above all reasons and
take preventive steps for reducing such in further days, improving the quality of products.

Chapter 7
Findings, Suggestions
And
Conclusion

Findings:
1. From this project I have came to know that the medium scale manufacturing industry like
Airtech have to face lot of challenges in production.
2. Maintaining a good quality is a big problem for them consistency in new plant.
3. The management needs to carry out thorough TQM improvements in the organization.
4. The objective is not only to get ISO certifications for the organization, but also to
implement the TQM for better productivity and performance of the employees.
5. The production department needs to use statistical quality control tools for its analysis for
determining the defects.
6. All suppliers are listed by practicing an ISO audit, and short listed based upon the time of
delivery, Quality of product, Price carrying out vendor analysis every year.
7. The updating of software for usage of design of a product, for new product development
needs to be updated by changing from Auto cad.
8. The need for applying of new software for Purchase department is must instead of using
TALLY as software updating.
9. The number of rejected materials for chuckmatic section is more hence creates heavy loss
of 15% of production cost of both products which is result of cost of quality analysis for
both stages of production.
10. Lack in use of Ishikawa or fish bone diagrams, PARETO charts usage, concepts of TQM
in all departments.
11. Use of Average billing method is good for all departments to know the exact status of the
dispatch.
12. The internal audit for its contractors is done every yearly.
13. Mostly they are using just in concept for the chuckmatic division for supplying to TATA
motors Dharwad.
14. The die used for the production of gear box has become inefficient which is the main
reason for production of defective materials.

Suggestions:
1. The use of Total quality management concepts can help the Airtech Pvt Ltd ,to
reduce the Cost of production /unit in rupees in the High pressure die –casting
machine for front gear box production ,Rear gear box production etc.
2. In order to develop as large scale manufacturing the company needs to expand its
plant.
3. The use of Ishikawa diagrams ,Control charts ,Cost of quality analysis, can help in
reducing the problems faced by the production department ,can help in reducing
losses due to defective product produced in the High pressure die casting
machine.
4. Formation of effective quality circles in every department can help the
organization to have better performance for achieving the objectives of the
organization.
5. The internal failure costs needs to be reduced in order to maximize the profit,
smooth running of plant.
6. Use of SAP software in store department can help the company to reduce the
time, know the status of inventory at any time.
7. To encourage employees in TQM implementation their participation is a must by
giving rewards and giving trainings on job, as well as off the job training.
8. Changing of Die for better quality products is a must, needs to be focused.

Conclusion:
The study has helped me in understanding of the production of different machine tools, how
Total quality management can help the organization in achieving quality, and to give customer
satisfaction by producing the quality products to its customers. How a all different departments
function together to achieve goals of the organization. By implementing TQM which can
decrease the wastage of products. From this study I have practically analyzed the usage of
control charts, to determine the reason for the defective production of products. The company
has been accepted the implementing and usage of certain concepts for implementing in the
organization after suggesting them. Learning the TQM practically was helpful for me, learning
the audit of vendors, suppliers.

Bibliography

8.1 Books:
 Out of crisis -W. Edward Deming
 What is quality control(The Japanese Way)-Karou Ishikawa
 Total quality management(Key concepts and case studies)-DR.R.Kiran
 Total quality management (2nd edition)-Poornima M.Charanthimat
8.2 Websites:
 Organization details
 www.airtechindia.com
 Industry profile
 https://www.ibef.org/industry/manufacturing-sector-india.aspx
 https://www.pwc.in/industries/industrial-manufacturing.html
 https://www.sciencedirect.com
 https://www.businesstoday.in
 Journal Papers:
 Carlson, B., 1981, The Content of Productivity Growth in Swedish Manufacturing,
Research Policy 10, 336-355. , 1983, The Machine Tool industry - Problems and Pro
sects in an International Perspective, IUI Working Paper No. 96 (IUI, Stockholm).
 Amitava Mitra, (2001). Fundamentals of Quality Control and Improvement, New
Delhi: Pearson education Inc.
 Jonathan Osborne., Sibel Erduran., and Shirley Simon., (2004).Enhancing the
quality of argumentation in school science, Journal of Research in Science Teaching,
Vol. 41, No. 10, pp. 994-1020.
 Ravichandran Joghee,(2017) QUALITY PAPER Control chart for high-quality
processes based on Six Sigma quality, International Journal of Quality & Reliability
Management, Vol. 34 Issue 1 pp. 2 – 1.
 Other references:
 ‎https://ocw.mit.edu/index.htm
 www.edx.org/MIT‎

Annexure

I. List of Tables:
Serial Table Page

No. No Title No
1 1.1 List of Deming award winners 11
2 6.1 Table no.6.1.Front gear box production data of Buhler machine 80
Table no 6.2.Calculation for front gear box production X-bar

3 6.2 chart 82
4 6.3 Calculation for front gear box production R- chart 84
5 6.4 Rear gear box production data of Buhler machine 86
Table no 6.5. Calculation for Rear gear box production X-bar

6 6.5 chart 87
7 6.6 Table no 6.6. Calculation for Rear gear box production R chart 89
Table no 6.7. Calculation for NP control chart front gear box

8 6.7 production 91
Table no 6.8. Calculation for NP control chart Rear gear box

9 6.8 production 93
Table no 6.9. Calculation for first stage cost analysis of front

10 6.9 gear box 95
Table no 6.10. Calculation for first stage cost analysis of Rear

11 6.1 gear box 97
Table no 6.11. Calculation for second stage for cost analysis of

12 6.11 front gear box 99
Table no 6.12. Calculation for second stage for cost analysis of

13 6.12 Rear gear box 101
Table no 6.13. Data for PARETO analysis from MILITAP

14 6.13 machine 103
15 6.14 Table no 6.14. Calculation for PARETO analysis 104

II. List of Figures:
Serial
No. Fig No Title Page No
1 4.2a Figure .4.2a .Chuck manufactured 53
2 4.2b Figure 4.2b.Cylinders manufactured 54
3 4.2c Figure 4.2c.Chuck Jaws 55
4 4.2d Figure .4.2d.Front and Rear gear box 55

II. List of Graphs:
Serial
No. Graph no Title Page No
Graph no 6.1. X -Bar chart for determining the

1 Graph no 6.1. process control of Front gear box production 81
Graph no 6.2. R- Chart for determining the

2 Graph no 6.2. process control of front gear box production 83
Graph no 6.3. X -Bar chart for determining the

3 Graph no 6.3. process control of Rear gear box production 87
Graph no 6.4. R-chart for determining the

4 Graph no 6.4. process control of Rear gear box production. 89
Graph no 6.5. NP-chart for determining the

5 Graph no 6.5. process control of Front gear box production 91
Graph no 6.6. NP-chart for determining the

6 Graph no 6.6. process control of Rear gear box production 93
Graph no 6.7. Cost of quality analysis for the

7 Graph no 6.7 first stage of front gear box production 95

8 Graph no 6.8 first stage of Rear gear box production 97

9 Graph no 6.9 second stage of front gear box production 99

10 Graph no 6.10 second stage of Rear gear box production 101
Graph no 6.11. PARETO Chart for MILITAP

11 Graph no 6.11 machine 103


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Total quality management practices and its effects on AIRTECH PVT LTD

Kousali Institute of Management Studies, Karnatak university, Dharwad 1

Kousali Institute of Management Studies, Karnatak university, Dharwad 2

Kousali Institute of Management Studies, Karnatak university, Dharwad 3

1.2 Statement of the problem:

1.3 Significance of the study:

Kousali Institute of Management Studies, Karnatak university, Dharwad 4

1.4. Introduction to Total quality management:

Some useful messages from results of TQM implementations:

Kousali Institute of Management Studies, Karnatak university, Dharwad 5

1.4 a. Aspects of TQM:

b) TQM leadership from top management

Kousali Institute of Management Studies, Karnatak university, Dharwad 6

development and use of performance indicators is linked, directly or indirectly, to customer

Kousali Institute of Management Studies, Karnatak university, Dharwad 7

e) Actions based on facts

f) Employee participation and A TQM culture

Kousali Institute of Management Studies, Karnatak university, Dharwad 8

g) Product development in a TQM environment

Product development in a TQM environment is very different to product development in a non-

h) Awards for Quality achievement

Kousali Institute of Management Studies, Karnatak university, Dharwad 9

List of Deming prize winners from the 1951 to 2017

SI.NO Year Name of Organization

2 1951 Showa Denko K.K.

3 1951 Tanabe Seiyaku Co., Ltd

5 1958 Kaneka Corporation

6 1961 Denso Japan

7 1965 Toyota Motor Corporation

8 1976 Pentel Co., Ltd

9 1989 Florida Power & Light (first non-Japanese winner of award)

10 1994 Lucent Technologies, Power Systems (first American

manufacturer to win award

11 1998 Sundaram Clayton brakes division

12 2002 TVS Motor Company (TVSMC)[5]

14 2003 Rane Brake Lining Ltd.

15 2003 Sona Koyo Steering Systems Ltd

16 2004 Indo Gulf Fertilisers Ltd.

17 2004 LUCAS TVS

18 2004 SRF LTD

Kousali Institute of Management Studies, Karnatak university, Dharwad 10

19 2005 Rane Engine Valve Ltd

20 2005 Rane TRW Steering Systems Ltd.(SGD

21 2005 Krishna Maruti Ltd., Seat Division

22 2006 Sanden International

23 2007 Rane(Madras) Ltd

24 2008 Tata Steel

25 2010 National engineering instruments Ltd

26 2011 Sanden Vikas(India) Ltd

27 2012 SRF Ltd

28 2012 Mahindra and Mahindra Farm Equipments sector

29 2013 RSB Transmission

32 2014 Mahindra Powerol

33 2016 Ashok Leyland, Pantanagr

34 2017 Ashok Leyland, Hosur

35 2017 CEAT LTD

Table.1.1.list of Deming award winners

Kousali Institute of Management Studies, Karnatak university, Dharwad 11

1.5. Literature review

(Jun & Cai, 2010)

Kousali Institute of Management Studies, Karnatak university, Dharwad 12

Kousali Institute of Management Studies, Karnatak university, Dharwad 13

Customers and suppliers