MBAAR Assignment

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TABLE OF CONTENTS:- I Executive Summary 7 II Introduction about the company 8 Part 1 1a Evaluate the interrelationship between the different processes and functions of the organisation 9 1b Justify the methodology to be used to map processes to the organisations goals and objectives 19 1c Evaluate the output of the process and the quality gateways. 20 Part 2 2a Design plans which promote goals and objectives for own area of responsibility. 22 2b Write objectives which are SMART based to align people and other resources in an effective and efficient way. 26 2c Implement appropriate systems to achieve in most efficient way on time to budget and meeting organisational standards of quality? 31 2d Carry out work activities meeting the operational plan through effective monitoring and control 35 Part 3 3a Design system to manage and monitor quality standard specified by the organisation. 38 3b Demonstrate quality culture to ensure continuous monitoring, evaluation and development of the process 41 3c Recommend improvement which align with the organisation’s objectives & goals and which results in improvement 45 3d Report on the wider implication of the proposed changes within the organisation 46 Part 4 4a Carry out risk assessments as required by legislation, regulation and organisational requirements ensuring appropriate action is taken. 48 4b Demonstrate that health and safety regulations and 50 1

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Transcript of MBAAR Assignment

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TABLE OF CONTENTS:-

I Executive Summary 7II Introduction about the company 8

Part 11a Evaluate the interrelationship between the different processes and functions

of the organisation9

1b Justify the methodology to be used to map processes to the organisations goals and objectives

19

1c Evaluate the output of the process and the quality gateways. 20Part 2

2a Design plans which promote goals and objectives for own area of responsibility.

22

2b Write objectives which are SMART based to align people and other resources in an effective and efficient way.

26

2c Implement appropriate systems to achieve in most efficient way on time to budget and meeting organisational standards of quality?

31

2d Carry out work activities meeting the operational plan through effective monitoring and control

35

Part 33a Design system to manage and monitor quality standard specified by the

organisation.38

3b Demonstrate quality culture to ensure continuous monitoring, evaluation and development of the process

41

3c Recommend improvement which align with the organisation’s objectives & goals and which results in improvement

45

3d Report on the wider implication of the proposed changes within the organisation

46

Part 44a Carry out risk assessments as required by legislation, regulation and

organisational requirements ensuring appropriate action is taken.48

4b Demonstrate that health and safety regulations and legislation applicable in specific work situations are correctly and effectively applied.

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4c Carry out a systematic review of organisational health and safety policies and procedures in order to ensure they are effective and compliant

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4d Carry out practical applications of health and safety policies and procedures in the workplace.

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III Conclusion 55IV Bibliography 56

LIST OF DIAGRAMS: -

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1.1 The Mission, Vision, & Values of Asian Paints ltd 91.2 Business objectives of Asian Paints ltd for the year 2011-12 101.3 Asian Paints tall hierarchical structure 111.4 Asian Paints flat organisational structure 121.5 Organisational pyramid of Asian Paints ltd 141.6 Types of Business Processes 151.7 Various Business Processes used in Asian Paints ltd 151.8 business process in Asian Paints ltd 171.9 core and key activities of Asian paints ltd 191.10 Asian paints critical success factors 212.1 Ansoff’s matrix 232.2 elements of planning in Asian Paints 242.3 Business plan of CRM SAP process 252.4 SMART objectives abbreviation 262.5 SMART Objectives of CRM process in Asian paints 272.6 implementation of SAP software 282.7 CRM process of Asian Paint with SAP software 282.8 Process Areas which are affecting Asian paints other department with

implementation of SAP software30

2.9 Work Breakdown Structure of CRM process in Asian Paints 312.10 Gantt chart and Project milestones of CRM SAP process 323.1 Critical path analysis of SAP CRM process 333.2 Risk factor analysis of SAP CRM process 343.3 primary activities of Asian paints 353.4 Secondary activities of Asian paints 363.5 Operational plans of Asian paints 373.6 Quality Policy at Asian Paints 383.7 David Bain’s 5 key steps of quality control system 393.8 Quality Assurance factors in Asian Paints 403.9 Quality control chart of Asian paint 403.10 Manufacturing process 424.1 Factors which will help Asian paints to have better TQM 434.2 critical success factors of Six Sigma 454.3 Benefits of using Six Sigma 464.4 Negative impact of having Six Sigma in Asian Paints 474.5 Health safety risk assessment at APL 494.6 Risk Assessment at Asian Paints 494.7 benefits to Asian paints of having health & safety regulations 504.8 Health and Safety Regulations apply to Asian paints. 524.9 Health and safety policy 534.10 Evaluation and recommendation of Health and safety. 54

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Executive Summary:-

The assignment describes the way in which Asian Paints Ltd. conduct their operations in

India and in International markets. The assignment covers the following topics:

1. Aims and objectives affecting the structure, culture and business processes of Asian Paints

2. Areas of responsibilities and operational plan of Asian Paints

3 .Quality control systems and methods to monitor appropriate system to improve

organisational performance at Asian Paints,

4. Health & safety policies at Asian Paints ltd.

The Purpose and aim of the assignment is

To create new plans which would help Asian Paints ltd to improve their performance

in local and in International markets

To provide an understanding of the skill in order to manage the activities in the

business workplace so as to improve their effectiveness and efficiency.

To create effective planning, on how the management of Asian Paints ltd can

improve the business processes.

To give an understanding of how the operational planning skills can give a new looks

so that it leads to the development of the organisation.

To take into account how quality is of core importance in introducing new quality

checks, methods and systems.

To Suggests how health and safety regulations in a workplace can be improved in

better ways.

INTRODUCTION: -

Asian paints ltd is the India’s largest paint company in the public sector and a quoted

company on the stock exchange at BSE Sensex (code 500820) being its benchmark, which

deals in manufacturing decorative coatings which means that they are into secondary sector

who deals into manufacturing the output of the primary sector. Asian Paints operates in 22

countries and has 30 paint manufacturing facilities in the world servicing consumers in over

65 countries. The company was incorporated in the year 1942 in India. Asian Paints have

extensively computerized its operations in India using the cutting edge solution provided by

SAP and i2. It helped the company drive benefits of faster market analysis for better decision

making.

Asian Paints Ltd. has a combined turnover of 830 million US dollars with its strong presence

in the Indian subcontinent, south East Asia, Far East, South pacific Caribbean, Africa &

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Europe. Along with Asian paints the group consists of SCIB chemicals, Berger International

& APCO coatings. Together the group has 30 manufacturing unit globally.

They have the highest number of range of product portfolios in the industry of

chemicals, Paints & Resin manufactures. They are as follows Exterior walls (4), Interior

walls (10), Enamels (4), Wood finishes (4)

1.1) Evaluate the interrelationship between the different processes and functions of the

organization.

Mission statements’ are formal declarations of underlying purpose. They say what an

organisation exists to do, “Viva Books Private Limited, (2009) Business essential:

Management (1st edition) BPP learning media: London.” in relation to the chosen

organisation i.e. Asian Paints ltd, they have broken down their mission statement in 3

modified steps and they are as follows:

Figure 1.1 The Mission, Vision, & Values of Asian Paints ltd (www.asianpaints.com)

Business objectives of Asian Paints ltd: -

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Mission

statement

To provide paints as per demand, ensuring desired level and quality of customer (dealer) service, continued availability of the right product mix of right quality at the right time.

Vision

to become one of the top five decorative coatings companies’ worlds – wide by leveraging in the higher growth emerging markets.

Values

Trust Openness Commitment Customer satisfaction Value for moneyQuality Growth Orientation Integrity

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Figure 1.2 Business objectives of Asian Paints ltd for the year 2011-12

(www.Asianpaints.com)

ORGANISATIONAL STRUCUTRE OF ASIAN PAINTS LTD: -

Wilson and Rosenfeld (1990, p.215) says, “The established pattern of relationships between

the component parts of an organisation, outlining both communication, control and authority

patterns. Structure distinguishes the parts of an organisation and delineates the relationship

between them”. Organisations are structured in a variety of ways, dependant on their

objectives and culture. The structure of an organisation will determine the manner in which it

operates and its performance. Structure allows the responsibilities for different functions and

processes to be clearly allocated to different departments and employees.

The management of Asian Paints ltd has adopted a newer organisational structure from the

year 2007 leaving behind their “tall & formal hierarchical structure where the authority

was centralised and bureaucracy was presented. But it is now the management who has

adopted a more decentralised structure and a flatter (functional) structure which is more

flexible in working and it (functional structure) is arranged according to what each section or

department does. By having this type of organisational structure the problem of

communication in the form of feedback from employees is resolved, also the structure allows

cross functioning of department which helps in better decision making as well as valuable

inputs from the employees are taken into consideration. The last but not the least it allows the

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Business objectives

To introduce a new innovative product

each year (R&D department)

Targeting a rapid growth by 10% in

the overseas market (Egypt, Carribean)

To cut down on inventory and

Reduce the number of rejection level in making a product To increase sales in

national 25-30%& international

operations 22 -27%.

To improve CRM in the year 2012

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organisation to delegate task to the lower level that are willing to take responsibilities and

wants to achieve the goals of the firms, which makes the organisation best suited.

The figure 1.3 and 1.4 below shows both earlier and the recently adopted organisational

structure of Asian Paints ltd.

Figure 1.3 Asian Paints tall hierarchical structure (field work)

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Chief Executive/MD States Management representatives

Chief GM Operations DGM Accounts DGM Logistic DGM Purchase DGM Admin GM Planning/MKT/ Quality assurance

SR MGR Sales Admin

SR MGR Sales Admin

SR Purchase Executive

MGR Excise EDP Manager

MGR Maintenance

ENV & Safety Officer

MGR Personnel & Admin

GM Production

Chairman

ORGANISATIONAL STRUCUTRE OF ASIAN PAINTS LTD

Figure 1.4 – Asian Paints flat organisational structure. (Field research)

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The concept of culture has developed from ANTHROPOLOGY i.e. the study of the human

behaviour as a whole and as well as the study of the mankind. The management and

organisational behaviour journal of “Laurie J. MULLINS of the eighth edition” states that

Organisational Culture is the collection of traditional values, policies, beliefs and attitudes

that constitute a pervasive context for everything that we do and think in an Organisation.

Asian paint’s adopts a people orientated culture, Asian Paints believes that people are its

strongest assets, for a company can go only as high as its people aim. It is people who

innovate and invent, and who engineer the efficiencies that make a business succeed. It is

they who drive growth and lead to greater heights. An open and interactive work culture

brings out the best from their people. A sense of ownership and freedom to experiment at

their workplace brings out creativity and innovation in every individual. Excellent training

is provided to develop leaders and re-strengthen competencies from within the organisation.

Besides encouraging achievers from within the organisation, they absorb the best talent

from some of the best management and technology institutes in the country.

They hire people who are best suited to the job and whose personal goals are in alignment

with their corporate purpose. Thus, the task is cut out for every individual within the

framework of result-orientation, market insight, customer perspective, trust, respect and

problem solving.

The culture used in Asian paints follows a very influential system. So that in order for a

company to move forward and ensure that the company earns and makes profit. “Cultural

Aspect (2008) Employees roles [online] (updated 13 August 2008) Available at:

http://www.asianpaints.com [Accessed 24th October 2011].”

The organisation results in making organisation making an organisational pyramid which

helps the management to break a common mission.

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Operate business/coordinate activities to accomplish objectives

Put plans into action, allocating individual work and seeing that it’s accomplished

Figure 1.5 Organisational pyramid of Asian Paints ltd

Business Process: -

A business process is best defined as any function within an organisation that enables the

organisation to successfully deliver its products or services. “(source: article, the benchmark

exchange; (online); updated at 2011; Available at: http://www.benchnet.com/datproc.htm)

(Accessed on 17/10/2011)”.

Rummler & Brache (1995) defines business process is a series of steps designed to produce a

product or service. Most processes (...) are cross-functional, spanning the ‘white space’

between the boxes on the organization chart. There are 3 types of business processes and they

are as follows:-

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Board mission statement

Top management (strategy)

Middle management (Tactics)

Junior Management (operations)

Team Members

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Figure 1.6 Types of Business Processes (Management: business essential viva books Pvt

ltd)

The various processes that are being used in Asian Paints ltd are the same types of processes

which are being drafted in the above diagram, the only difference in the Asian paints process

is the second process which they have termed as value creation process instead of

operational process. Below is a diagrammatic representation of business process that is used

in Asian Paints ltd.

Figure 1.7 Various Business Processes used in Asian Paints ltd (field work)

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It is the processes that govern the operation. it includes Corporate governance, strategic management etc.

Management Processes

Create the primary value.the part of core business.Purchasing, Marketing and sales

Operational Processes Supporting processes -

support the core processes. Accounting, Recuritment, IT Support.

Supporting Processes

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Business process is a set of linked activities that create value by transforming an input into a

more valuable output. Both input and output can be artefacts and/or information and the

transformation can be performed by human actors, machines, or both.

All the business processes which are mentioned above are in some way or the other

interrelated to the organisation. There are 3 processes which are followed in Asian Paints

ltd, they are as follows: - Management process, Value creation processes and Support

processes.

All employees work for achieving the objectives of an organisation in the form of a business

cycle so does Asian Paints. It all starts with the Management process wherein all the

strategic planning or change management things take place in this process. Thereafter it is

followed by the Value creation processes which have 2 sections, where it goes to the first

section of demand creation process of value creation process where all the market agency

report (Crisil market agency ltd) is being gathered and the report is sent for formulation for

market development and customer acquisition bifurcation. It then goes to the demand

fulfilment process where Designing of the product takes place in the Design process (R&D)

who coordinates with the finance department for the requirement of funds to help

Design process to design the product, after which it goes to the production and delivery

processes, where the manufacturing of the designed product is being carried out as per the

demand forecasted by the Crisis market agency and then simultaneously the logistics and

quality assurance department will work together for assuring the product is of good quality

and whereas logistics is concerned they will check the availability of the product in the

warehouse. Then the marketing department will market their product in the market and

thereafter Service Processes i.e. after sale service where they will try to satisfy the

customer with its after sales service strategies.

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Figure 1.8 the business process in Asian Paints ltd (field work)

Critical Analysis of business process:-

According to the author, the whole business process of Asian Paints ltd is an ideal business

process which should be implemented by other organisations (for a paint industry). With the

deployment of newer technology in the business process like SAP or ERP software has

gained a 360 degree view of the customer, the reason behind this is that Asian Paints ltd has

got the experience of cross functioning in the organisation. For example if they want to

create a new product which has value added features and will benefit the company in their

bottom line. In that case the Planning department will coordinate with the R&D (Design

Process) to make R&D aware of making a new product. Then the R&D will contact the

production department to start the production of the designed product which the R&D has

designed.

Thereafter the production will contact the logistics department to check whether they have

the raw materials to start the production if not then they will contact the purchase department

to purchase the raw material in order to start the production.

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After the production is completed the production unit will forward the lead to the Quality

assurance department to check the products are of the right quality standard which according

the company’s quality policy and if the products are of the right quality standard then the

marketing department will carry out the marketing strategies to ensure that the product has

reached the end users.

It is because of cross functioning process Asian paints efficiency and productivity level

has increased and has erased the errors and the rejection levels of orders by 7% from

the year 2009- 11 in the organisation and are now targeting to manufacture zero defects

products.

The main factors which Asian Paints ltd needs to look upon is the communication: increase

in communication with the other department’s will lead to a better understanding and

coordination between departments as well as performing an activity in the business process.

This will lead to an increase in the efficiency levels and productivity levels in the company.

Constant training and monitoring of activities/targets in the organisation will help gain

focus in doing any task. And constant interaction with the R&D and marketing

department will help the organisation to remain updated and be competitive in the market.

Therefore with the help of cross functions techniques which Asian paints currently uses

and as well the suggestions which the author has given in the above lines will help APL to

achieve the values (customer satisfaction, growth orientation and quality in process)

refer figure 1.1 and mission statement and as well as the objectives of the firm.

The author would like to give an example: Asian Paints ltd can achieve global standards like

NIPPON paints ltd of Japan, if they implement the recommended process of SAP and ERP

in their organisation. Also Asian Paints ltd can reach to the standards of Nippon if they

implement the same processes of Nippon and their family like culture wherein they involve

the employees for suggestion in the business goals and future roads ahead, has lead the

company to do wonders in the organisation by 5% growth every year.

1.2) Justify the methodology to be used to map processes to the organization’s goals and

objectives.

The Process Mapping is a visual aid which helps in understanding the work process of Asian

Paints ltd. The success of any business depends on the ability to communicate the core

functions and the key activities of the business. Process mapping is a technique where a

business process or workflow is converted into a visual, step by step diagram. The success of

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any business depends on the ability to communicate the core functions and the key activities

of the business as well as how processes and activities interrelate and the directional flow of

the process.

Figure 1.9 Core and key activities of Asian paints ltd

Critical Analysis: - The above diagram explains the core processes and the key activities of

Asian Paints ltd where the core processes aims to achieve the key activities which leads to

fulfilling the business objectives which are mentioned in figure 1.2. The processes which are

mapped to the organization’s goals and objectives are R&D department because this has led

to achieve organisation’s goals and objectives by introducing a new product each year i.e. (

Royale luxury emulsion, Royale Glitter and in the kids world section: ceiling themes)

which is the first goal & objective of the firm.

The other processes which are mapped to organisations goals and objective is CRM

department. This is one of the sections which they have drastically improved in Asian

Paints. They installed software like SAP, I2 and ERP which has led to achieving their

activity of creating a direct link to the customer and improve customer satisfaction. It is due

to that Asian Paints has overcome the problem of not having sufficient data to manage

customer data.

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The last but not the least Sales department who have achieved the goals of the organisation

refer figure 1.2 point 4. The evidence of increase in sales is as per the recently published Q2

–FY12 the standalone results of Asian Paints ltd for the quarter ended September 30,

2011Net sales increased by 25.5% to Rs. 1843.6 cr to Rs. 1469.5 cr and whereas the

subsidiaries and joint venture of Asian Paints – sales & operating income has risen by 24.3%

to Rs. 2250.8 cr. “Asian Paints in the news (2011) Asian paints home page- Asian paints- sep

2011 results [online] (updated on 2110//2011) Available at: http://www.asianpaints.com

[Accessed 04/11/2011]”

1.3) Evaluate the output of the process and the quality gateways.

Asian Paints ltd has always tried to achieve all the factors of their mission statement since

the start. Asian Paints has always maintained a high quality of products & services. They

have introduced new products from time to time for their customers. All the new objectives

introduced by the management of Asian Paints fulfil the criteria of SMART (Specific,

Measurable, Achievable, Results-oriented & Time bound). The outcome of any business

processes are based on goals and critical success factors. Some of the business process

measures of Asian Paints are

Figure 1.10 Asian paints critical success factors

The author will discuss some of CSF in order to bring specific quality output measures

which results in meeting the output requirement of the firm.

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Customer satisfaction (SAP)

Quantity of output (wide product

portfolio)

Extent of containment of

risk

Quantity of rejects Timescale of delivery processs

Lower delivery cost

Lower throughput time

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SAP software was a revolution in APL because of which they are able to handle

Customer data management with greater visibility more predicted results of

customer wants are being drawn.

Large quantity of products has ensured that APL has captured most number of market

segment which leads to be their quality output requirement.

They are currently the highest number of product portfolio in the industry of

paint, chemicals, and Resin manufactures.

The other CSF is lower throughput time where how much time is being taken to

complete unit of product from raw material to finished product. And APL has always

produced products on time which timescale of delivery process is also achieved.

2.1) Design plans which promote goals and objectives for own area of responsibility.

“The geographical area associated with a combatant commander has authority to plan and

conduct operations”. “Area of responsibility (2006) Dictionary/thesaurus [online] (updated

26th June 2011), Available at http:// www.thefreedictionary.com/areaofresponsibility”. The

reason the author has chosen this definition of own area of responsibility because there has

been a recent development in the process of CRM (SAP) and as well as the author was

closely linked to the CRM process of Asian paints. The development of CRM was huge

success for Asian paints because APL first piloted the process of SAP (Project Tantra) which

saw a huge response in base country and then expanded their SAP process to the international

operations which was further saw rise in the revenue generation & faster customer

acquisitions.

The areas of responsibilities of Asian Paints are Internal & External customers, Customer

orientation, Market Research, Product development, and time management and CRM.

Asian Paints have both internal and external customers in their organisation, e.g. of internal

customers to Asian Paints are Suppliers, workers, stakeholders etc. Whereas external

customers are those people who help the organisation to meet its objectives who work for the

organisation externally. For example Customers, government, market agencies etc. ““Viva

Books Private Limited, (2009) Business essential: Management (1st edition) BPP learning

media: London.”

Asian paints follow a market driven/ led business. Asian paints bestow their resources in

order to satisfy their customers. “Miller, A., et al (2004) Strategic management (2nd edition)

New York: USA”.

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Whereas the other area of responsibility of Asian Paints is product development, where

they carry out strategic analysis for reviewing their existing plans and identifying newer

opportunities and risk associated. Out of the two main forms of strategic analysis i.e.

SWOT Analysis and Ansoff’s matrix, Asian Paints uses Ansoff’s matrix as their model to

review their product development.

Figure 2.1 Ansoff’s matrix (2008) Papers4you.com [online] (updated 12th march 2010)

Available at http://www.coursework4you.co.uk

Product development

The purpose of product development is to draw new customers and maintain existing

customers. Asian paints has made many product developments like in the category of wall

paints it has developed emulsion paints which are washable called Tractor and acrylic

emulsion. Asian paints royal was also a product development strategy which has helped

them to gain potential new buyers.

Planning is the keystone for any business in order to achieve its objectives. The functions of

organising, leading, and controlling carry out the decisions of planning. Although some

environments are less predictable than others, all organisations operate in uncertain

environments. For an organisation to succeed, management somehow must cope with and

adapt to, change and uncertainty. “David, A., Fischer, (1983) Strategies towards political

pressure: A typology of firm responses.” Academy of management review, pp.71-78.”

Therefore, for Asian Paints planning is the only tool management for them to adapt to

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Automotive paints, Marine paints, industrial coatings etc

Wood finishes and metal paints were for home user only but now they started for industrial purpose also. Leads to achieve in business objective of rapid growth.

Targeting their products to new foreign countries like Caribbean’s, Fuji and merging with companies like Nippon. Achieving in the objective of increase sales of international operations

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change in their organisation and succeed in the future. Planning helps Asian Paints to define

its purposes and activities.

It enables them to set performance standards so that results can be compared with the

standard to help managers to see how the organisation is progressing towards its goals.

The need for planning also is demonstrated by the relationship between planning and the

other management functions. Asian Paints knows that planning is one of their essential tools

which are the beginning of the management process. “Arthur C. Beck and Ellis D. Hillmar,

Positive Management Practices: Bringing out the best in organisation and people (San

Francisco: Jossey- Bass, 1986).” Asian Paints considers four major elements of planning

and they are as follows:-

Figure 2.2 Elements of planning in Asian Paints

Asian Paints objectives are integral to plans because they specify future conditions that the

management considers adequate, for example “as stated above one of their area of

responsibility as well as their corporate objectives states to improve Customer Relationship

Management process as well as in figure 1.2 (in CRM: customer satisfaction, develop a

direct link to the customers, standardize the sale delivery processes used by Asian

Paints home solutions providers, and improve financial controls).

Actions are specified, chosen means to achieve the objectives. The chosen course of action is

to install SAP and ERP software’s systems in the organisation nationally and

internationally.

Resources are those factors of production which will help them to initiate the

implementation process as well as getting acquainted to the newer technology in the

organisation for e.g. Land, labour capital and enterprise of Asian Paints. Finally the

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Objectives Actions Resources Implemetation

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implementation process is where it involves the assignment and direction of personnel to

carry out the plan.

As stated above in one of the Business Objectives that Asian Paint’s objective is to improve

CRM for the year 2011, they came up with higher end technology of SAP and ERP

management software where they have significantly improved their CRM and have managed

to achieve their goals and objective with the help of this process. Asian paints realized that

the firm’s long term growth depended on their ability to forge even closer ties to the end

consumers. The author has drawn a business plan of CRM SAP process for APL in

designing a business plan in order to promote goals and objectives.

Figure 2.3 Business plan of CRM SAP process

Asian Paints own area of responsibility’s plan is to improve CRM process in the

organisation with the help of the above mentioned elements of planning will help them to

gain their corporate objective.

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2.2) Write objectives which are SMART based to align people and other resources in

an effective and efficient way.

Doran (1981) stated and categorized objectives into the SMART objectives in his issue of

management review. The term ‘SMART’ is just an abbreviation of the following:-

Figure 2.4 SMART objectives abbreviation

Thus Asian Paints have considered the above SMART objectives as their objectives to

improve the process of Customer Relationship Management. The author has considered

the Doran’s theory of SMART objectives in the evaluation of Asian Paint’s Customer

Relationship Management and they are as follows:-

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S.M.A.R.T

Specific

Measurable

AchievableRealistic

Time basaed

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Figure 2.5 SMART Objectives of CRM process in Asian paints.

Customer relationship management is essential process because it adds value to the firm and

it helps to improve business is an effective way. As the author mentioned above that Asian

Paints realized that the firm’s long term growth depended on their ability to forge even closer

ties to the end consumers.

A decreasing closer link to the end consumers was the reason for expressing a need for more

solution to their home painting needs. Asian paints implemented to move from

product based manufacturing to service based manufacturing and they started the CRM

process with the help of Asian Paints Home solutions.

The selection of SAP Net Weaver platform in their organisation was to overcome the

obstacle, with the help SAP software Asian Paints were able meet all the criteria in their

organisation as well as amalgamation with SAP Net Weaver business intelligence would help

them extract more confidential report which would create a more direct link to the customers.

They setup the whole new SAP business process with Customer interaction centre that

receive calls from customers and then forward the lead to another subsidiary company Asian

paints i.e. Asian paints home solution. Thereafter they will pass the information to the sale

associates teams who take an appointment with the customer and give the information to

Relationship associate who go to the customer residence for site survey and forward the lead

to Asian Paints colour world for selecting the paint, it further goes to the applicator for

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To develop a direct link to the end consumers is considered to be their specific objecitveSpecific

Targeted revenue growth US $8 to $10 milliion in the year 2011 Built relationship with applicator across 30000 customer sites

Measurable Improve customer satisfactionincreased scability in the organisationAchievable

Standardize sales delivery processes used by Asian Paints Homes solutions providers throughtout all round the world.

Realistic

To improve the CRM process with the help of SAP system in the year 2011Time based

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ordering the paints through Asian paints dealers who sources the paints for Asian paints.

Last but not the least it goes back to the Relationship department who conducts the painting

process at the customers place with the warranty.

Figure 2.6 implementation of SAP software.

Asian Paints named this whole CRM process of SAP as Project Tantra which leads to

success of Customer Relationship Management process.

Figure 2.7 CRM process of Asian Paint with SAP software.

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Critical Analysis: -

With the implementation of SAP software helped Asian Paints to reach its objective of

deepening its ties with the end consumers. At the same time they even standardize business

processes at each stage of a painting job. First of all their prime objective of getting the job

done quickly was being achieved by reaching the customers as fast as possible therefore it

deepens their ties with end customers. Secondly Asian Paints strong supremacy in

implementing the SAP solution proved to be their successful innovation process in CRM

process.

Asian Paints traditional review committee conducted interim reviews at the key stages of

operation, which ensured that all major business and technical subjects were addressed all

the time when the process was not going according to the plan. They appointed labours from

different departments on their basis of merits and performance and then effectively gave

work and targets to each labours specification. There were 15 labours appointed in this

program and delegated work and rules of the program and were given task to achieve the

targets of the SAP program and they did achieve the objectives which were laid down to them

quite effectively of improving the CRM SAP process. Out of the 15 employees each and

every employee were effectively aligned, for e.g. 3 people were appointed for call centre

wherein 1 employee is given a day shift and the other 2 are given the night shift, 7 employees

were in sales associates. Out of the 7 people 3 employees are given back office work where

they will take appointment of the customers and the other 4 will be doing actual sales. In

relationship associates team there are 3 employees who all are given the site measurement

work at the same time. On the other hand 2 employees are appointed in applicators.

Strong project management certified that key milestones and key specific dates were met

on time. Thirdly Asian Paints strong training facilities to their employees ensured that their

objective of improving CRM was achieved with ease. Asian Paints organised an extensive

training program consisting of classroom sessions that included training in basic computer

skills and office applications and as well as support activities like giving an employee a

chance to new job like front line support to employee of handling business questions and

queries.

On the other hand Asian Paints realized that they achieved, faster customer acquisition,

increased in revenue up to US$8 million, optimized customer visibility into customer

needs and scalability in the organisation with the SAP software.

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There were some other business processes that amended with the implementation of SAP

software and their impacts are described in the following table:

Figure 2.8 Process Areas which are affecting Asian paints other department with

implementation of SAP software. (PDF file SAP software of business transformation)

Now that the Asian Paints has achieved the corporate objective for the year 2011 of

improving the CRM process in their organisation as well as they have the objectives of CRM

process which the management had laid down for them.

Recommendations: -

But it’s high time for Asian Paints to look for the future as their competitors are gaining

competitive advantage the author would like to suggest Asian Paints to start Campaign

management one of the highly demanded management process as they will be able to

retrieve more insight customer profile to customize and develop a full cycle of campaign

management by using cutting- edge tools available in the current market and improve

customer intelligence.

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Also the author would like to suggest that they can target for newer market segments like

architects and interior designers by just not selling and serving the B2C markets they can

even go for the above mentioned example of B2B marketing which will help them to gain

more customers.

2.3) implement appropriate systems to achieve objectives in most efficient way on time

to budget and meeting organisational standards of quality?

To implement appropriate systems to achieve the objectives in most efficient way on time to

budget and meeting organisational standards of quality, the author has chosen the Project

Management tool to implement appropriate standards.

A project is “a unique endeavour to produce a set of deliverables within clearly specified

time, cost and quality constraints”. “Projects vary so much that they are difficult to define. A

project is a unique venture which has a beginning and an end date, conducted by people

to meet established goals within a parameter of cost schedule and quality (Buchanan and

Baddy 1992).”

The author has chosen Work break Structure of CRM process, Gantt chart, Critical Path

Analysis and Risk Management tool to implement systems to achieve objectives in most

efficient way and organisational standards of quality of SAP CRM process in the

organisation.

Figure 2.9 Work Breakdown Structure of CRM process in Asian Paints

Work breakdown structure will help Asian Paints to conduct the customer relationship

SAP process in the organisation and will help them to know which all task are going be

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performed and which are the important tasks and without them the whole process will be a

failure.

Based on the above work breakdown structure, the author has developed a ‘Gantt chart’ as

well as project milestones in order to have a clear idea on the activities and the time duration

needed for each activity. So it is easy to understand the order of the activities to be carried out

and in the interim it will make possible for the viewers to identify easily the total duration.

“Basu (2004) defined Gantt chart as a simple tool which represents time as a bar or a line on

a chart”. The start and finish times for activities are displayed by the length of the bar and

often the actual progress of the task is also indicated. A Gantt chart is shown below by the

author.

Figure 2.10 Gantt chart and Project milestones of CRM SAP process

The author has developed the above ‘Gantt chart’, ‘project milestones’ based on the four

parameters of the project life cycle and activities were clearly defined under which of those

four parameters it will lay. The total duration of the project is expected to be 1month 12 days

to complete the project. The author has made use of milestones in the form of arrows, which

the author feels is the most important because it depicts key events along a timescale.

Critical Analysis: - As Gantt chart is a visual representation of a task over period of time,

which is used to schedule, coordinate and allocate the resources needed to complete a firm’s

objective, thus in relation to the Asian Paints SAP CRM process it is the project manager’s

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responsibility to see that their activities have been fulfilled or not. If not fulfilled on the

allocated time then the manager needs to use his contingency plans in order to finish the

activities on the allocated time set by the manager to monitor the whole process. If for

example the activity “Designed customized SAP software” doesn’t fulfil the requirements

as per standards of Asian Paints then the project will fail, then whole CRM process will

not be successful to achieve the objectives which are laid by CRM department. Whereas

milestones are concerned which are slotted in the diagram, if the activities which are given as

milestones and have not been contented then the other activities will not be preceded until

and unless the milestone activities are not accomplished and it will cause a delay in the

project dates.

Thereafter, the author has taken into account the basic network diagram an another project

management tool where the Project manager of CRM SAP process has effectively planned

and controlled the project, which will help the Project manager of SAP CRM process to

meets its objective on time and will be able to meet organisational standards of quality.

Figure 3.1 Critical path analysis of SAP CRM process

Thereafter the author has taken into account the basic network diagram where the manager

has effectively plan and controlled the project. The basic network diagram may be defined as

a graphical presentation of the project’s activities showing the planned sequence of work,

“Burke (2007) Introduction to Project Management, Partner Pub Group”. The critical paths

are marked in Red dotted lines and floating activities are non-dotted red lines. In context

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to the SAP CRM process the total duration of the project is 40 weeks and the author has

drafted the network diagram on the basis of the Gantt chart activities.

Risk factor analysis: “According to PMOB Handbook (1992) project and program risk

management volume 6”, states that the systematic processes of identifying, analysing and

responding to the project risk... [Throughout the project life cycle.] It includes maximising

the results of positive events and minimising the consequences of adverse events. This is one

of the most essential stages of project planning because it will provide valuable information

to carry decision regarding project direction and the contingency plans of the project. Below

the table shows the risk factor and analysis involved in the SAP CRM process:

Figure 3.2 Risk factor analysis of SAP CRM process

2.4) Carry out work activities meeting the operational plan through effective

monitoring and control.

The operation plans of Asian paints are Product Development, Value Added Chain,

Meeting Objectives, and Organizational Constrains. Asian paints pursue two steps. In

order to develop a new product they are Design & Development & Establishing

Specifications. Asian paints mechanisms on products which are market pull products. In this

situation the company first estimates that sales could increase if a new product were designed

to appeal to their customers. After carrying out the market research the R&D Department of

Asian paints set up the specifications of the products. Value Added Chain of Asian paints has

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APL opted for backward integrationUses i2 factory planning software to manage inflow of material.

APL believes : people who do innovation and invent new products and increases efficiency of the business4700 employees in 23 countries open and interactive culture which motivates people to work

Currently using SAP I2 and ERP as a software which is making internally enabled business

The company has 26 manufacturing units and its presence in 22 countries also highlights the firmness of its infrastructure

the process where they buy raw material from their suppliers of high standards (ISO 9000

and 14000 certified) and they produce goods with high value. They make sure they add more

value to their products by updating their technology regularly. The author has drafted a

figure of Asian Paints value added chains:-

Figure 3.3 primary activities of Asian paints.

Figure 3.4 Secondary activities of Asian paints

29

Inbound

Logistics

Operations

Marketing

Service

Outbound

LogisticsSuppliers ,

Contractors

SAP* CRM , CAD

SAP , CRM – DMS & CAM

Strategic Alliance with Berger paints SCIB paints , APCO

paints etc.

Transporters, Convoy Drivers Association, E-

Commerce (websites)

Dealer Network, Marketing Research Firms, Advertising

agency , Paints industry week and

internet

Regional Warehouses,

Dealer Workshops,

Distributors, SAP*CRM training

and after sales service is being

provided.

Procurement HR management

Technology development

Firms infrastrucutre

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Asian Paints has constantly tried to meet their objectives which are Quality, Time and

Cost. Asian Paints has never negotiated with good quality. It has made products of the best

design with reasonable prices range for its customers. They always dealt in large numbers

with better-quality products which made them the market leaders. Asian paints have learned

that by developing new products on time they could maximise their sales and profit. They

order raw material in bulk to get discount from dealers, design products to cut cost but not

affect the quality and avoid wastage during production. These were some cost cutting

techniques used by APL and also by doing this they even achieved economies of scales.

Asian Paints Management team has put in a lot of efforts in order to improve coordination

between the different departments. TQM also helped in creating better coordination between

staffs and management. Thus coordination in Asian Paints is used as an example by many

companies for benchmarking. Like any other firm APL also has organizational constraints.

They are External Stakeholders & Rigid Controls. External Stakeholders consist of

shareholders, society and customers who impose certain obligations on Asian paints. Rigid

Controls on APL are that they have to reveal all their business processes to the government.

Since APL has many international units they have to bear the laws of all the countries in

which they function.

Figure 3.5 Operational plans of Asian paints

30

Operational plans of

Asian Paints

Meeting objectives

Product Developme

nt

Organisational

constraints

Value added chain

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3.1 Design system to manage and monitor quality standard specified by the

organisation.

In today’s world “Quality” has become the most important factor in determining the

organisations positions to remain in this competitive market. High quality products lead to

customer goodwill and satisfaction. These, in turn create repeat sales, loyal customers and

clients. “Juran (1974) Juran Quality Control Handbook, Fifth Edition, 1999”, has defined

quality as fitness for use and it has two elements such as quality of design and quality of

conformance.

The system to manage and monitor quality standard specified by the organisation at Asian

Paints ltd is given by the quality policy by the top management to all its operations in

the organisation and they are listed below:-

Figure 3.6 Quality Policy at Asian Paints (www.asianpaints.com/ quality policy section)

Quality Control Methods & Systems at Asian Paints : -

The control methods and systems which are adapted by Asian Paints are Quality of

conformance, Quality Assurance, Quality control, TQM, Quality circles, ISO 9000 and

14000 certification and supply chain management. Asian Paints adopts “David Bain, the

productivity Prescription: the manager’s guide to improve productivity and profits (New

York: McGraw- Hill, 1982), pp119-27.” Five keys steps to develop a quality control system

and they are as follows: -

31

should provide products & services that meet the stated standards on time, every time.

continously improve the processes to understand changing customers needs and preferences and use the same as input for reviweing and setting performance standards for thier products and services

Accept Zero defect as a quality absolute, and design & operate quality system accordingly

Organise work practices to do a job right at the first time, every time

commited to continous improvement in quality in all business processes and track improvement through measurable indicators

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Figure 3.7 David Bain’s 5 key steps of quality control system.

For Quality of Conformance Asian Paints confirms that the specification of the

manufactured products or services doesn’t have any defects in the finish goods. Quality

Assurance Asian Paints makes sure that the products are produced of high standards because

of the checks that have been made a long way. In Asian Paints Quality Assurance is setting

and agreeing to those standards throughout the organisation and making sure that they are

complied with so that customer satisfaction is achieved. The QA department first duty of

checking is in Supplier quality assurance, wherein the supplier guarantees the quality of

raw material supplied and allows the customer access while the goods are being

manufactured. The benefit of using this type QA method is to eliminate goods inward

inspection and saving large amount of cost and time in flow production.

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Figure 3.8 Quality Assurance factors in Asian Paints

Asian Paints’ Quality Control is concerned with maintaining quality standards. Asian

Paints uses this system to detect and eliminate goods that fall below the standards. The

quality control department’s heads carries out a range of inspections and test before the

products reach the customers. The 3 stages that are involved in effective quality control

techniques at Asian Paints are Prevention, Inspection, Correction and improvement.

Asian Paints doesn’t mind investing in such quite expensive- qualified engineers to inspect,

because they want their products to be highly valued by customers and would like to create a

benchmark by saying, no other paint industry is better than Asian Paints. Below the author

has drawn a quality control chart for their one of the sample products.

Figure 3.9 Quality control charts of Asian Paints (field work)

33

will the product meet the expectations of consumers

Product Design

Quality of bought- in components

Quality of inputs

This can be assured by total quality management (tqm)

Production Quality

customers need goods and services delivered at times convenient to them

Delivery systems

Continued customer satisfaction will depend on the quality of contact with consumers after purchase

Customers service including after sale service

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Total Quality Management at Asian Paints is termed as the concept that considers all staff

in an organisation as being accountable for quality. Asian Paints management teaches its

employees or be it workers how to meet stakeholders needs and expectations efficiently and

effectively, without compromising ethical values. At Asian Paints the TQM approach fits in

well their style motivation i.e. Herzberg principles of Job enrichment. Each employee tries

to provide the best services to the internal customers (colleagues or superiors) and external

customers (consumers, government and society) for e.g. if the pigment process in the paints

chemical process is not removed properly then it will not go to mixing process if it is not

reached minimum benchmark level then it will not pass through the next stage of pigmented

process.

Asian Paints has Quality Circles present in the firm, the sole purpose of having quality

circles is to concentrate on quality enhancement on a continuous basis and this has proven

to be beneficial for the company in terms of quality improvement and process improvement.

The manufacturing plastic coated paints and weather proof is an example of Quality

Circle.

Asian Paints is certified as a ISO 9000 quality company with the help of ISO certified label

on all its products help consumers to buy products and as well as it ensures the product is of a

high quality. Asian Paints products have ISO 9000 & 14000 marks which are of

international standards and thus they are reliable suppliers to their customers. Also they are

committed to ISO 9001 quality. Asian Paints the state of art, supply chain system to edge

technology to amalgamate all its plants. The supply chain runs through a broad spectrum of

functions right from planning to procurement to initial distribution. By having this system

enrolled in the organisation it has improved operational efficiencies and has generated agile

procurement, production and delivery systems.

3.2) Demonstrate a quality culture to ensure continuous monitoring, evaluation and

development of the process.

For Asian Paints quality management is not just the process for them but it’s a continuous

assessment of their process. As mentioned earlier in the above question that TQM is a

philosophy for managing an organisation in a way that enables it to meet stakeholder’s needs

and expectation efficiently.

It is said that TQM is very hard to achieve if the organisational culture for example language,

artefacts, subcultures etc do not operate in whole unity then the whole system which is being

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imposed is in trouble, therefore at Asian Paints their priority on changing culture brings

quality to ensure continuous monitoring and development of the process.

The author will give an example of a manufacturing process in Asian Paints to describe how

TQM is monitored, evaluation, and development of the process. Asian Paints have taken

several steps in ensuring how TQM is monitored in the manufacturing process:

Figure 3.10 Manufacturing process (word file: POMASSIGNMENT (Asian Paints)

[online] www.scrib.com)

In the dispersion stage of manufacturing process, Asian paints monitors on the basis

desired particles i.e. the size of the pigments. To assure it’s of the right quality the Quality

Assurance department will check the pigment particles at the supplier’s base and will pass a

quality confirmation slip (which will ensure that the pigment are of the right size and

weight) to the manufacturing department’s head to go ahead with the production. Also the

other way to monitor the dispersion stage of manufacturing process Asian paints

production department checks the additives of chemicals, which needs to be added in binder

for the dispersion of pigments.

In the adjustment stage of the manufacturing process, Asian paints monitors this stage of

manufacturing process on the basis shades, viscosity and weight per litre. The monitoring

of adjustment stage of manufacturing process is done by the centrifuging screen machine to

remove unwanted pigments. In order to get the desired product properties such as shades,

viscosity and weight per litre, Asian paints assures to bring the right quality by adding of

chemical solvent in order to bring the consistency in the shades and viscosity etc.

35

dispersion

the pigment are mixed with the binder and suitable additives, and wetted with a suitable surfoctant or dispersing agent on the top floor depending on the desired particle size, pigment hardness and nature of the solvent used.

adjustment

stablished adjustment of the paint composition follows dispersion. the process aims to obtain the desired product properties such as shade, viscicity and weight per liter.

packagin

g

tinting or shade matching is performed. after adjustment, the finished paints is stored in a hopper on the floor below for some time before being packed and sealed in different pack sizes.

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The last stage of manufacturing process is packaging stage. Asian Paints monitors this

process by getting the finished paint in different hoppers for some cooling to get the right

texture and thickness of the paints and the paint is packed in the different size containers to

assure they are packed and sealed in different pack sizes they have container detector

machine to assure the right weight of container is filled according to the specified litre.

Evaluation:

Currently Asian paints are effectively using TQM process but they still needs to work

efficiently to ensure that the TQM is performed in the right manner in what the TQM guru’s

have stated in their research. The factors which Asian paints needs look at are as follows:

Figure 4.1 Factors which will help Asian paints to have better TQM

The reason the author is suggesting for the above factors to be implemented in the

organisation is because prevention will help Asian paints to manufacture better quality

products without any wastage of resources, as well as they will produce goods that meets the

minimum stated standards of the company’s quality policy. The author will give explain the

above example of manufacturing process to explain the prevention factor: for e.g. if the

supplier delivers the wrong pigments of the undesired product then the production of

unwanted raw materials will take place which will increase the cost to the firm and no real

productivity will be seen as the manufacturing of wrong raw material is being manufactured.

For Inspection: this will help Asian paints to reduce the high number of rejection entries in

developing the product because a hiring of the inspect officer will reduce the rejection and

36

PREVENTION

INSPECTION

CORRECTION

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error entry in the organisation and will Asian paints to achieve the quality policy of

accepting zero defects as a quality absolute products. For example in the manufacturing

process of adjustment stage, inspection of adding the right amount of chemical solvent to get

the right the shade and viscosity will help Asian paints to achieve the high sales and profits

because of shrinking in the number rejection levels.

For Correction: With the help container detector machine which is Asian paints, good use

of technology is ensuring the right quality of goods is delivering to the customer. The

container detector machine helps Asian paints to remove the minute mistakes done by the

labours which will help Asian Paints the right amount of litre of paints boxes are delivered

to the customer.

Development :- As Asian paints is currently using TQM process as to ensure the quality

culture the author would like to suggest the company firstly to check the pigments from the

supplier’s base, i.e. supplier should check the pigments whether they are in the proper

conditions or not and are of the right desired the particle size. This will help Asian paints to

remove the errors and achieve the quality policy objective of zero defects. Also regular

updating of newer quality chemical additive solvent will help Asian paints to deliver the

right standard of paint to its customers because the solvent helps to disperse the unwanted

pigment and helps to get the consistency in the paints. Constant development in the process

of technology will keep Asian paints in touch with the competitors in making absolute ‘zero

defects’ products and be i delivering the best paint product to its customers. Last but not the

least constant training to the inspector every quarterly will help Asian paints to bring in

efficiency and increase productivity in their organisation and will reduce the number of

rejection and errors. Thus the authors above factors will help Asian paints to achieve the

TQM properly which will ensure the quality culture is being nurtured in the workplace quite

efficiently and effectively

3.3) Recommend improvements which align with the organization’s objectives and goals

and which results in improvement?

The author would like to recommend Asian paints to adopt Six Sigma theory because Six

Sigma is a method that use to improve the output quality of a process. It instigate towards

reaching the goals and objective, performance measuring, process improvement. It integrates

all the business processes makes the organisation work towards the zero defects. If Asian

paints implements this tool of quality improvement it will align the organisation’s objective

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and goals. The author has given critical success factors to justify his chosen of six sigma tool

of quality improvement. The aim of having six sigma is to improve the business processes in

the organisation and remove defects in the organisation so that the organisation is more

productive and efficient enough to meet its customer requirements. There are different layers

of six sigma belts: - Yellow, Green belt, Black belt, Master Black belt and the champion belt

so that the increase in the belt parts lead to more competitive a company.

Below are the critical success factors which the author thinks which are essential in

recommending for improvement in order to achieve the goals and objectives.

Figure 4.2 critical success factors of Six Sigma (process quality associates inc (2006) six

sigma success factors [online]

http://www.pqa.net/ProdServices/sixsigma/W06002005.html [accessed on 18th

December 2011]

3.4) Report on the wider implications of the proposed changes within the organization?

The author would like to suggest Asian paints ltd to opt for six sigma tool of quality

improvement because it helps the organisation to reduce the manufacturing defects, improve

the business profitability, and improve the productivity and efficiency of all operations to

meet the needs and expectations. The basic function of six sigma is to meet the customer

requirement, improve customer retention and improve business products and services.

The positive impact which Asian paints will have in adopting Six Sigma are as follows: -

38

Top management leadership and commitement

A well implemented

customer management

system

The education and trainng system

developed competitive

benchmarking system

A well developed strategic planned

system

A well organised information and analysis system

equipping all with quality tools

developed supplier management

system

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Figure 4.3 Benefits of using Six Sigma (Benefits of six sigma (2003) Adams six sigma

[online] (11th Jan 2003) Available at: www.

adamssixsigma.com/benefits_of_six_sigma.htm [accessed on 17th December 2011]

Every theory has positive and negative effects on the business; therefore Asian paints will

face the negative impacts of having adopted Six Sigma tool of quality improvement and

they are as follows:

Figure 4.4 Negative impact of having Six Sigma in Asian Paints.

39

Reduced cycle time

Time management Less Wastage

sustained gains and

improvements

fewer customer complaints

Use of standard operating

procedures

Alignment with vison, objectives

and values

Concepts are integrated

May difficult to gather sufficient data and can be a problem when big tactical decision are being made based on the data collected.

High cost involvement in this process

Wrong statistical errors getting qualified and the product not being reaching the end consumers

Lack of expericene may lead to problems like decrease in profits and quality measurement

The six sigma theory may sometime may not match the organisation

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The above factors will have wider implications to Asian Paints on the proposed changes

suggested by the author. The author would like to recommend Asian paints to Implemented

the Six Sigma because by having invested huge amount of capital in getting SAP software

installed therefore the author would suggest Asian paints to use Six Sigma process of

quality improvement by overlooking the pros and cons of six sigma, Asian paints will be

successful in carrying out this process and will able to achieve the business objective with

ease.

4.1) Carry out risk assessments as required by legislation, regulation and organizational

requirements ensuring appropriate action is taken?

Health and Safety legislation can be defined as, organised efforts and procedures for

identifying workplace hazards and reducing accidents and exposure to harmful situations and

substances. It also includes training of personnel in accident prevention, accident response,

emergency preparedness and use of protective clothing and equipment. “Business

dicitionary.com (2006) definition of health and safety management [online] (updated on 5th

June 2010) Available at: http://www.businessdictionary.com/definition/health-and-safety-

management.html.”

A risk assessment is an essential action in shielding employees for Asian Paints and its

business, also with act in accordance with the law set by the government. For Asian paints it

ensures them to remain focal point which is a subject in workplace- the ones which causes

problems.

In some situations simple measures can readily manage risks, for example, promptly cleaned

floors prevents workers from falling on the floor or with safety equipment’s being constantly

provided with higher and good quality materials from preventing the workers not getting

burnt as well as saving the workers from heat radiation emitted out by the machines.

Also well managed safety standards lay down by the management like fire safety drill every

6 months. All this things brings worth to Asian paints. Asian paints health and safety

department has devised a five step plan in order to carry out risk assessment in order to

ensure that appropriate action is taken.

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Figure 4.5 Health safety risk assessment at APL (field work)

The author will give an example to the above diagram so it becomes very clear how risk

assessment takes place in Asian paints ltd

Figure 4.6 Risk Assessment at Asian Paints (field work)

41

identify hazards

Assess & prioritise risk to emplyees and

other parties

Develop risk reduction plan &

establish objective for improvement

Develop effective monitoring &

measurement system

Review results

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Asian Paints further uses the fire alarm system, relevant sign boards such as exit, fire, no

smoking, emergency exit etc. where have been placed to make it easier for employees to

know wherein which device is located. The employees are handed out the health and safety

document while joining the firm and are made acquainted to the health and safety regulations

of the firms.

The author believes that Asian Paints has enough precautions in their kitty to prevent from

health and safety issues. Therefore the benefits which the firm’s gains as well the employees

and workers are listed below:-

Figure 4.7 benefits to Asian paints of having health & safety regulations

4.2) Demonstrate that health and safety regulations and legislations applicable in

specific work situations are correctly and effectively applied?

The laws do expect every organisation to practice but they have to see the safety of

employees as well as society at large. The author has identified the health and safety

legislations according to the Factories act of 1948 for health and safety and welfare of the

workers pertaining to PAINT Industry.

The author will give laws which are related to the industry which the company operates in as

well as the laws which are specific to the organisation (Asian paints)

42

Reduce accidents

increased standards

and efficiency

improved employer/em

ployee relations

improved uses of

resources

Fewer compensatio

n claims

Reduced insurance

claims

Boost in productivity/

profit

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Figure 4.8 Health and Safety Regulations apply to Asian paints.

4.3) Carry out a systematic review of organisational health and safety policies and

procedures in order to ensure they are effective and compliant?

In order to carry out a systematic review of organisational health and safety policies and

procedure the author has drawn a health and safety policies which is followed by Asian

Paints ltd

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Figure 4.9 Health and safety policy (PDF file: available at:

http://www.bsigroup.com/upload/Product%20Services/Electrical/EGHSPolicyStatemen

t%5B1%5D.pdf [Accessed on 9th December 2011] [online]

The author believes that Asian paints are always ready to accept the change and forge these

changes in their organisation. Evaluating the effectiveness of health and safety regulations it

is necessary for Asian paints to know whether they are efficient and compliant enough to

practice health and safety regulation in their organisation.

The author will now explain the effectiveness of health and safety policies at Asian paints

with the areas it needs to improve. The author has discussed only the main points which he

thinks improvement are to be made.

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Figure 4.10 Evaluation and recommendation of Health and safety.

4.4) Carry out practical applications of health and safety policies and procedures in the

workplace?

The author has given Asian paints author views and points of practical application of health

and safety policies which are mentioned in the above diagram no. 4.10, for example the

health and safety law of slip trip and fall, the practical application of the health and safety

policy in workplace could be done by hiring the service of housekeeping company people

who comes during the production hours where the chances of spilling of paints likely to take

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place therefore with the help of housekeeping firms machine Asian will able to keep the

floors clean which will lead to reducing the number accident.

According to the author the other health and safety policy which needs to practically to be

used is the Work equipment and machinery. The management should have a contract with

the current vendors who are providing the Quarterly reports of the maintenance of the

equipments or they should start bargaining at the point of buying new machinery in the

organisation by having an early contract with vendor for maintenance or replacing old with

new machines.

Last but not the least the practical application of Fire and explosion act of health and safety in

Asian paints can be done by having monthly fire mock drill which will make the company

use the fire extinguisher, which will prevent it from getting expired and value for money is

adhered.

Conclusion:

Asian paints are an organisation that has being operating for last 30 years in India as well as

international with total 22 operations worldwide. The author has discussed how the

interrelationship between different processes has led to achieving business goals and

objectives. Thereafter the author has discussed the areas of responsibilities and operational

plan of the firm and how they can be improved. On the other hand the author has discussed

how Asian paints have able to monitor appropriate systems of quality systems in order to

improve organisational performance. Last but not the least the author has discussed how

Asian paints have managed health and safety in the workplace.

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