Change Management at the PTC (Quality Improvement Program 2007)

Change Management at PTC

Group Members:

Jarrar Haider -056

Faizan Anjum -101

Saleha Hashim -155

Zunaira Shabbir -102Date: Wednesday, 14 May

2014

Content

Introduction Problem faced by PTC TQM Program Challenges for Implementation SQC Tools Solution for Change Voice of customer Implementation Results References

Introduction

• Operational in 180 countries

• 85000 people employed

• Sold 17% share of global market of cigrates

BAT group

• Was in operations in India from 1905

• In 2005 PTC paid the government Rs.20 Billion in excise and sales taxes (66millions per day)

PTC incorporated

in 1947

• 2 operational factories at Jhelum and Akora Khattak

• ISO 9001 and 14001 certifiedFactories

Problem Faced by Company

Market decreasing share

• Complaints from customers

• Quality issues for product

Statistical quality control (SQC) tools to cater this issue

• Different perception of employee and managers

Objectives of program was to

Change organizational culture from classic authoritative & shareholder-focused to a more participative and consumer-focused

TQM Program

Low cost and high quality is essential,

so need of

Efficient and

responsive supply chain

Low process wastes and

quality product

Challenges for Implementation of

Change

Behavior and resistance to program of employee

Motivation level was low

Series of complementary program introduces ◦ WOW (Winning in our World)

◦ Business Excellence Program (MRP)

◦ Supply Chain Modification

SQC Tools

Variation in product characteristcs

Cigarette is more lucrative product

◦ Highly taxed

◦ Taste dependent (question origion)

For company fighting with variations

was important

Solutions for Modifying

Behaviour of Employee for

Change Company embarked on the SQC implementation

program with the following outlines:

Planned to get assistance of highly qualified outside consultants for the training & education

Educate line Mangers.

Educate shop floor employees (Team Members)

Developing graphs and use on machines manually.

Introduce an online system.

Failure and Modification

Insufficient commitment of top management, to create enthusiasm in the participants. ◦ 40% dropout from course on second day

◦ Only 50% participant could manage to get “Course Attendance Certificate ”

Threat of failure came on the shoulders of the consultant

New Team for Change

New hired consultant(highly respected and experienced ), proved to be as ineffective as the first one was.

Management now tough on different line

Approached academia professor

New team formed of two consultant and one professor

Problem Sorted Out

Low literacy rate of the workforce is an impediment.

Age profile of the workforce is contributing to the lack of enthusiasm for leaning new tools

Most workers have not been to classroom environment for more than 20 years

• Finding it difficult to adjust to the environment

The lack of confidence to acquire the same level of skills on the new tools

• loose their personal leadership

Recommendation by team

Brain storming with site session

participants

Listen to their feedback and views to

make a more realistic action plan

First step towards VOC (Voice of

Customer)

VOC (voice of customer)

After consideration ◦ Venue changed for sessions (Islamabad)

◦ Properly invited events for session

Objectives communicated to training manager ◦ This not for us (trainer didn’t quoted example

of relevant industry)

◦ What is in it for me (extra work view of employee)

◦ What are the benefits for PTC

Alternate Route

Fact-finding team found itself facing a set of ground realities totally different from assumed

◦ Need of aligning the training contents to the training needs

◦ The site management should carry out all the development work using indigenous resource

◦ Training of the employees should be done by someone from within.

◦ There should reward and recognition system in place for high performers

Implementation

Training material developed in Urdu Language ◦ With relevent industry examples

Course completed successfully ◦ All participants got above 60% marks in final

exam

Crashed program offered for senior machine operators on 7-quality tools ◦ Concerned about product, weight,

circumference and pressure-drop

Web-based quality information system developed to display graphs on CRTs

Reward and Recognition

Comprehensive test was scheduled at

the end of each course

Top 3 position honored by professors

for recognition

Dinners arranged for participants

Results (period starting 1999 to 2007)

Factory Production Floor: (MQI)

Results (period starting 1999 to

2007) Manufacturing Quality Index


Ex-market


Market Complaints

Conclusion

Program proved to be very successful

Within one year the shop-floor employees started using control charts, Ishikawa & Pareto diagrams and histograms for analysing product and process quality and taking corrective actions.

The enthusiasm was so high that people started to volunteer for the training course

References Company Reference

Turab Ali Khan

Product Assurance Manager

Pakistan Tobacco Company Ltd. Pakistan

Web references

◦ http://en.wikipedia.org/wiki/Pakistan_Tobacco_Company

◦ www.ptc.com.pk/group/sites/pak_7shbxn.nsf/.../medMD933EBD.pdf

◦ http://www.brecorder.com/company-news/235:pakistan/1161783:pakistan-tobacco-company/

◦ http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWebLive/DO7T5LR5?opendocument&SKN=1

◦ http://www.pakistanbusinessjournal.com/b2b-directory/pakistan-tobacco-company-ltd_26812.html

◦ http://www.ptc.com.pk/

◦ http://www.ptb.gov.pk/

Change Management at the PTC (Quality Improvement Program 2007)

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Transcript of Change Management at the PTC (Quality Improvement Program 2007)