FUNDAMENTALS OF QUALITY MANAGEMENT PROJECT

STUDY ON THE QUALITY MANAGEMENT PRACTICES AT

PREMIER PACKAGING INDUSTRIES
(Mfgrs.of: Heavy Duty Corrugated Boxes)

Supervisor: Mr. Prakash Singhal

Submitted By:
Aashir Jain - 3261
Aishwarya Kori - 3262
Devika Perayil - 3276
Muskan Kandoi-3286
Rachel Mahima - 3291
Tanya Chhabra - 3310

1
 TABLE OF CONTENTS

S.no.
Topic Page no.

1. Acknowledgement 3
2. Introduction & ISO Certification 4-5
3. Costs 5
4. Just in Time 6-7
5. Deming’s Philosophy Application 7-8
6. Steps taken to ensure Quality 8- 9
7. Products and process of Quality Control 10-11
8. Quality Inspection 12
9. Questionnaire 13
10. Overall Experience 14

2
 ACKNOWLEDGEMENT
We have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organizations. We would like to extend our
sincere thanks to all of them.
We are highly indebted to the SCMS faculty for their guidance and constant supervision as
well as for providing necessary information regarding the project & also for their support in
completing the project.
We would like to express our gratitude towards Mr. Prakash Singhal (project supervisor from
Premier Packaging) for his kind cooperation and encouragement which helped us in
completion of this project.
We would like to express our special gratitude and thanks to them for giving us such attention
and time.

3
INTRODUCTION
PREMIER PACKAGING INDUSTRIES (PVT) LTD, is the leading manufacturer of
Conductive Corrugated Boxes at Chinchwad MIDC Pune,since 1991 providing complete
solution for the corrugated packaging needs of small and large industrial houses. Corrugated
board process on the whole consists of innumerable details which affect the quality matters
and which several parties deal with every day.
The quality development work is done continuously in the field and new techniques have
been brought into use during the last few years. Adapting and adopting it right a system of
comprehensive quality management is created.
They have been in this business vertical for more than 25 Years, developing and advancing
their acumen constantly to ensure that they always remain a key member in the supply chain
of their customers.
Premier Packaging Industries works closely with its customers and suppliers, they provide a
safe, innovative and environmentally sound products that meet the needs of hundreds of
people each day.Some of the brands that they have tied up with are Ammus paper products
Pvt Ltd, Convertex India Pvt Ltd and Yuvraaj hygiene products Pvt Ltd.

ISO CERTIFICATION
ISO certification certifies that a management system, manufacturing process, service, or
documentation procedure has all the requirements for standardization and quality
assurance.The number appearing after ISO classifies the standard. All standards within the
ISO 9000 family refer to quality management.If an organization bills themselves as "ISO
9001 Certified," this means that the organization has met the requirements designated under
ISO 9001. The certification also requires organizations to define and follow a quality
management system that is both appropriate and effective while also requiring them to
identify areas for improvement and take action toward those improvements.As a result, it's
typically understood that an organization claiming certification is an organization with
products and services that meet quality standards.
An ISO certification for your manufacturing business could provide the following benefits:

 More efficient delivery of products

 Reduction in errors, resulting in reduced waste
 Improved environmental performance of your supply chain
 Compliance with legislation and regulations
 Reduced costs
 Increased business – both new and existing
 Enhanced reputation, by demonstrating your commitment to meeting international
standards of excellence.

Premium Packaging Industries is registered under the ISO standards certification of Quality
since a long time but they faced quite a few problems along the way with the external
auditing team. The manufacturing unit maintained the quality standard required by ISO when
they had one of the biggest customers back in time, Bajaj. The unit had a tie up of supply
with the Company that required the high quality produces which came under the

4
 ISO standards but even when the contract ended with Bajaj, the ISO quality controllers kept
on pressurising the industry to keep up the same quality even when it is not required by their
other customer base. The CEO decided to end the contract to reduce the complications in
their product making but ISO convinced them later on to keep on continuing the contract with
the quality that is required by their customers under their lookout.

COSTS
The manufacturing unit manufactures recyclable corrugated boxes since 1991. Currently, the
average boxes manufactured is 2.5 tonnes per day. The work is carried on for 6 days and 10
hours each with thursdays being off.
The costing of the boxes is as follows:
1. Paper - 20/- per kg
2. Conveyance - 15/- per kg
3. All the machines are insured and have been bought on bank loan
The company works on a profit margin of 5 to 10%

Total quality management (TQM) is a philosophy of quality management and cost

management that considers that the costs of prevention are less than the costs of correction.
One of the main aims of TQM is thus to achieve zero rejects and 100% quality. Once the
company started following the quality management practice, it faced these two issues:
1. Standard costing focuses on cutting costs, whereas TQM focuses on improving
quality – these two aims were conflicting with each other.
2. The second is that as changes were made under TQM, then standard cost would keep
changing which would make it difficult to apply.

Thus the company came up with a solution of working on contract basis and applied
the principles of JIT (just in time)
The Just-in-Time or JIT is an inventory management system wherein the material,
or the products are produced and acquired just a few hours before they are put to use.
The Just-in-time system was adopted
 To reduce the unnecessary burden of inventory management, in case the
demand is less than the inventory raised.
 To follow the total quality management principles
 To reduce the costs and keep it consistent
 To not let the standard costs affect the quality of products manufactured

The objective of Just-in-time was to increase the inventory turnover and reduce the holding
cost and any other costs associated with it. To avail the benefits of this method, they
maintained a proper synchronization between the delivery of material and the manufacturing
cycle. The JIT required them to have a proper understanding between the manufacturer and
the supplier in terms of the delivery and the quality of the material. In the case of any
misunderstanding, the whole production process would come to a halt.
The success of just-in-time policy in this company highly depended on the suppliers as they
were ready with an adequate quality material to supply it to the manufacturer, as the need
arose. Also, the order was taken only for a contract of more than 500 boxes so that the cost
didn’t go up and the workers got a minimum pay because payment to the workers is made on
the basis of work done by them.

5
Advantages of Adopting Just-In-Time include:

 Just-in-time approach keeps stock holding costs to a minimum level. The released
capacity results in better utilization of space and bears a favourable impact on the
insurance premiums and rent that would otherwise be needed to be made.
 The just-in-time approach helps to eliminate waste. Chances of expired or out of date
products; do not arise at all.
 As under this management method, only essential stocks which are required for
manufacturing are obtained, thus less working capital is required. Under this
approach, a minimum re-ordering level is set, and only when that level is reached,
order for fresh stocks are made and thus this becomes a boon to inventory
management too.
 Due to the aforementioned low level of stocks held, the ROI (Return On Investment)
of the organizations be high in general.
 As this approach works on a demand-pull basis, all goods produced would be sold,
and thus it includes changes in demand with unanticipated ease. This makes JIT
appealing today, where the market demand is fickle and somewhat volatile.
 JIT emphasizes the ‘right-first-time’ concept, so that rework costs and the cost of
inspection is minimized.
 By following JIT greater efficiency and High-quality products can be derived.
 Better relationships are fostered along the production chain under a JIT system.
 Higher customer satisfaction due to continuous communication with the customer.
 Just In Time adoption result in the elimination of overproduction.

In a nutshell, the company is operating in dynamic and challenging marketplaces. To survive,

it must meet the customers' needs by implementing successful strategies such as Just in Time
(JIT) and Total Quality Management (TQM).Overall, JIT is a pull system that focuses on
producing what is necessary when it is necessary and in necessary amounts allowing the
pursuit of quality, cost minimization, delivery time and waste reduction, while TQM aims to
improve quality by continuous improvements of operations to guarantee free defects

6
products. By understanding their relationship to each other, the company got motivated to
adopt both strategies simultaneously, more precisely, implementing JIT as a component of
TQM is essential for improving performance.

DEMING PHILOSOPHY APPLICATION

During the 1970s and 1980s Deming wrote a series of articles designed to explain what was
responsible for the Japanese emergence in global manufacturing. In 1981 he published an
article detailing his 14 points for management. These 14 points were the basis for his
approach to quality management. Deming's approach is revolutionary--not evolutionary. And
the points go far beyond what is considered to be quality control--they affect all areas of
management.
1. Create a constant purpose toward improvement - The company planned for
quality in the long term by starting to take orders on a contract basis. The
company also stopped reacting with short term solutions to any problem, when
the staff don't turn up they don't scold them instead they are not given salary
for that day.The company tries to predict and prepare for future challenges,
and always have the goal of getting better.
2. Adopt the new philosophy- The company embraces quality throughout the
manufacturing unit in product, process and employees. They put their
customers' needs first, rather than react to competitive pressure and design
products and services to meet those needs. Their biggest client is Bajaj and
they stand up to their demands by doing the quality check as per their
requirements at their unit again. They are always prepared for a major change
in the way business is done.
3. Stop depending on inspections -Inspections are costly and unreliable – and
they don't improve quality, they merely find a lack of quality. So, they build
quality into the process from start to finish. They don't just find what where
they went wrong but eliminate the "wrongs" altogether. For e.g. they had 40
employees and now they have brought that down to 20 because they saw that
quality was not being maintained as the employees were being dependent on
each other. Secondly, they did not have a person to supervise the process of
making cuts in the carton because of which many cuts would be blunt and
would affect the quality of boxes, so they hired one employee there.
4. Use a single supplier for any one item - the company believes that quality
relies on consistency, i.e. the less variation you have in the input, the less
variation you'll have in the output. So, they have only one fixed supplier who
supplies them the paper. They make sure that the quality of the same is tested
before it goes into production.
5. Improve constantly and forever- the company continuously improves their
systems and processes. They follow the Plan-Do-Check-Act approach to
process analysis and improvement. Mr. Prakash told that they emphasize on
training and education so everyone can do their jobs better. They also use JIT
as a model to reduce waste and to improve productivity, effectiveness, and
safety.

7
 6. Use training on the job - They try to allow workers to understand their roles
in the "big picture and encourage staff to learn from one another, and provide
a culture and environment for effective teamwork.
7. Implement leadership- the workers told us that managers don't simply
supervise, they provide support and resources so that each staff member can
do his or her best. They become a coach instead of a policeman. They help
them find ways to reach full potential, and don't just focus on meeting targets
and quotas.
8. Eliminate Fear- Fear can be detrimental to the productivity of the employees.
Mr. Prakash mentioned that he makes sure that the work environment is
devoid of stress and fear to ensure that everyone works effectively for the
factory, feel safe and also take risks.
9. Breaking down barriers- As the factory is relatively small, the boundaries
between the departments is minimised. The office is situated adjacent to the
factory premises, where employees can walk in anytime and discuss any issues
or problems they are facing.
10. Eliminate slogans, exhortations, and targets - At the factory premises, there
are no boards or slogans asking for zero defects and new levels of
productivity. This does not put pressure on employees to constantly meet
numbers and they can work at their own pace without compromising on
Quality.
11. Eliminate Targets - Employees are not given targets or the pressure of
meeting deadlines. They are skilled craftsmen and the Manager trusts them
with their expertise.
12. Permit pride of workmanship- The factory has employees who have worked
since the incorporation of it, hence they are highly skilled for the activities at
the factory. They are given the freedom to make small decisions by
themselves, especially when it comes to the quality of corrugated boxes,
thickness of the paper etc.
13. Institute Education - Training is given utmost importance at the factory, as
they are dealing with heavy machinery. When new machinery was introduced
in the company a few years back, all the employees were given an in-depth
training by a professional.
14. Transformation is everyone’s job - Everyone in the company knows about
his value in contributing to the transformation of the factory.

STEPS TAKEN TO ENSURE QUALITY IS MAINTAINED

 Micromanaging is avoided- At Premier Packaging Industries, as the employees are

masters in the production, micromanaging is avoided. Mr. Prakash says that the
employees who are working currently have been with him for 5+ years. It is important
that he places his trust in them and gives them the freedom to manage the activities
with a certain amount of freedom.

8
  Motivation- The employees are given gifts and free food sometimes to encourage them
and appreciate their work. School kits are also given to the employees children during
the beginning of the school year.
 Challenging work- Sometimes employees are given the opportunity to head a task
force or to identify problems, evaluate, and come up with a solution. Making
employees feel like they are apart of a bigger change encourages them and keeps the
quality of their productivity up.

 Recognizing Good Work- As an employer, Mr Prakash always remains positive with

his workers and appreciates employees for their good work.

PRODUCTS
 Conductive Corrugated Boxes
 Corrugated Boxes
 Kraft Paper Corrugated Boxes
 Plastic Raw Material
 Polyester Raw Material

PROCESS AND QUALITY CONTROL

Step 1: First the paper is fed in the machine and then it goes to the corrugator.
Quality Control: To ensure quality in this step good quality paper is sourced, as raw material
determines the quality, capacity and durability of the finished product.

Step 2: The corrugator then folds the paper and then sends it to sheet cutter.

9
Quality Control: So according to the order, the corrugator is changed.There are different
types of ridges and furrows which determine the strength of the box.

The different types are:

The more the spacing between the ridges and furrows the less capacity it can hold and lesser
the spacing more the strength. To ensure utmost quality in this step the machineries and
equipment are routinely checked and serviced.
Step 3: In this step the corrugated sheet is cut into the required size.
Quality Control: To ensure quality and avoid defects, the blades are routinely checked and
employees are trained to operate and change the settings to adjust to different sizes.
Step 4: After the paper is cut, the workers then shift it to the pasting machine. In pasting the
corrugated sheet is pasted with glue between two linear sheets.
Quality Control: Routine servicing and refilling of glue is done to ensure the end result does
not affect the quality of the product.
Step 5: So after the corrugated sheets are pasted, the next step is creasing.In creasing it
creates creases on the corrugated sheet in predetermined fashion to facilitate easy folding of
the corrugated sheet into a box or carton.
Quality Control: To ensure the quality, workers are properly trained to use the machinery
and avoid any defects and delay.
Step 6: After the paper is creased, the next step is slotting.The slotting machine cuts slots on
the corrugated sheet in bulk. The slotting process results in creation of foldable flaps of
corrugated boxes.
Quality Control: In this, the major work is manual. The worker places the creased paper in
the slotting machine and the machine makes the cuts in the paper. To avoid delay and defects,
the workers are trained.
Step 7: In this step Corrugated Boxes are stitched together on the corners with the help of a
stitching machine. An Operator operates this machine which applies the required number of
staples . This process gives a complete corrugated box, which is ready for shipping.

Quality Control:The workers are trained to operate and manage the machinery.

10
QUALITY INSPECTION
The factory undergoes a quality check audit every 3 months to check the quality of the
product in each phase of production and ensure that safety measures for the workers and
employees are in place. These measures can be channels for efficient labour communication
to maintain quality and safety, fire exit plans laid , safety equipment which is easily
accessible and adequate exit points incase of emergency etc.
Premier packaging undergoes this inspection which is lead by a Factory Inspector and a
Labour Commissioner. The industry also has to get their factory quality license renewed
every 3 years.

BAJAJ the main customer has laid a quality norms for Premier Packaging which they follow.
Sample quality inspection is done at Premier Industries and Bajaj has its own inspection
equipment where each carton is inspected and replaced in case it fails to meet the standards.

A limited number of cartons of various sizes is delivered to Bajaj everyday and the quality
standard is inspected for each one.

11
Apart from these inspections, on any complaint from their suppliers they undertake sample
inspection at the different phases of production within the factory.

12
QUESTIONNAIRE
1. Name of the Company and the year of establishment?
2. Founders/ CEO of the company?
3. Total number of employees in the company?
4. Name of the Supervisor?
5. What are the steps taken for quality control?
6. How often is quality checked?
7. Incase of defects what steps are taken?
8. How often are employees trained?
9. What are the parameters for measuring quality of the products?
10. What is the production pattern like?

13
 OVERALL EXPERIENCE OF THE VISIT
We closely saw all the phases of production, how it’s manufactured and how quality is
controlled. The Quality Supervisor made us understand how they follow the quality standards
and principles. We saw the warehouse where the raw material is kept and how they ensure
that all material is of the expected quality.
They also showed us their ISO certificate and told us how they follow the guidelines, how
inspections are done, how quality is managed for different customers.
It was a very informative visit and helped us understand our subject better in a more practical
way.

14