A summer training project report on

“Consumer Perception and Quality Control: National Fertilizers Ltd.

In partial fulfillment of the requirement for the award of degree of

Master of Business Administration (MBA)
Session (2009-2011)

Submitted To: Submitted by:

(Marketing Manager), Gagandeep Singh
Ashok Sharma. MBA 3 rd Sem.
Roll no - 94112235730
 DECLARATION

I, Gagandeep Singh student of MBA (III) programme at the Baba Farid Institute of Management
Bathinda (Deon), here by declare that I have undergone the summer training at National
Fertilizer Ltd., Patiala , under the supervision of Sh. Ashok Sharma on and from 14-06-2010 to
26-07-2010.

I also declare that the present project report is based on the above summer training
and is my original work. The content of this project report has not been submitted to any other
university or institute either in part or full for the award of any degree, diploma or fellowship.

Further, I assign the right to university, subject to the permission from the
organization concerned, use the information and contents of this project to develop cases, case
lets, case leads, and papers for publication and/or for use in teaching.

(Signature)

GAGANDEEP SINGH
Roll No :- 94112235730

Place : BATHINDA [PUNJAB]

 PREFACE

This project report pertains to the making of a project SUMMER TRAINING of M.B.A.
curriculum.
The PURPOSE of this project is to make the students have thorough knowledge of the topics
given to them. I learned a lot from the hard work I put in to collect information regarding the
same, which would be of great use in my near future as a professional.
Justification cannot be done to whatever I have learn t within a few pages but I have still tried
my best to cover as much as possible about “Consumer Perception and Quality Control:
National Fertilizers Ltd., Chandigarh” in this report.

Being students of Masters in Business Administration, we need to be aware of the organization

internal environment. Summer training helps us to understand these concepts related to the
organization.
 ACKNOWLEDGEMENT

I take immense pleasure in completing this project and submitting the final project report. The
last two months with National Fertilizer Ltd. has been full of learning and sense of contribution
towards the organization. I would like to thank National Fertilizer Ltd. giving me this
opportunity for learning and contributing. I take this opportunity to thank all those people who
made this experience a memorable one.

A successful project can never be prepared by the singular effort of the person to
whom project is assigned but it also demanded the help and guardianship of some conversant
person who undersigned actively or passively in the completion of a successful project.

In this context as a student of Baba Farid Institute of Management Bathinda

(Deon) would like to thank and express my gratitude towards Mr. Ashok Sharma (Manager,
Marketing) for assigning me such a worthwhile topic “Consumer perception and Quality
control.”
In the end I extend my personal thanks to my parents and friends who have stood
by
my side in all my endeavors.

GAGANDEEP SINGH
Roll No :- 94112235730
 CONTENTS
 DECLARATION

 PREFACE

 ACKNOWLEDGEMENT

 MAIN OBJECTIVES OF STUDY

 HISTORY

 INTRODUCTION

 REVIEW LITERATURE

 ENVIORNMENT& POLLUTION CONTROL MEASURES

 RESEARCH METHODOLOGY

 SWOT ANALYSIS

 DATA ANALYSIS & INTERPRETATION

 FINDING

 CONCLUSION AND RECOMMENDATION

 QUESTIONNAIRE

 BIBLOGRAPHY
 THE EXECUTIVE SUMMARY

PROJECT UNDERTAKEN BY ME

The project studied by me in National Fertilizers, Chandigarh was “Consumer

Perception and Quality Control” It helps to make aware company regarding the various aspects
of quality controls performed at regular basis.

Quality is considered as the most powerful factor to capture, retain and enlarge customer
base in the modern business scenario. Achieving customer satisfaction is the essential business of
business and quality management is the most effective enterprise strategy. The state-of-the-art
quality management is an embodiment of concepts, methods and applications. In the last few
years, the business world has stood witness to many real life success stories. 

         Planning and achieving higher level of quality is fundamental to the successful operation of
enterprises, which necessitates understanding and managing various dynamics in an organization
in order to set goals and judiciously deploy resources. The efficiency and effectiveness with
which resources are obtained and utilized will depend upon the good management practices that
the organization follows.? Quality management also necessitates how well the system measures,
monitors and improves different metrics related to the business processes. Interrelationships
among the business processes, their metrics and the organizational achievement are influenced
by how well an organization deals with issues related to quality.? A number of innovative
approaches are required for balancing the objectives of the partners of the enterprise and the
requirements of customers, as there are many conflicting goals such as high customer service,
low inventory, low unit cost etc
 MAIN OBJECTIVE OF THE STUDY

• Consumer perception towards National Fertilizers.

• Understanding of total quality control

• Actions taken in pursuit of maintaining quality standards

• Perceptions of organisational benefit from quality standards

• Structural arrangements for quality management system

HOW IT WAS UNDERTAKEN

A survey was conducted by me among the company executives. During the survey I tried

my best that more and more questionnaire to be filled by the company executives so that to

conclude the results gracefully.

I was also appreciated by the support of the project guide and ZONAL MANAGER of

National Fertilizers Ltd., Chandigarh, SEC-17D who guided me the basic fundamentals of

quality control performed by the organisation.

 QUALITY CONTROL

In engineering and manufacturing, quality control and quality engineering are involved in
developing systems to ensure products or services are designed and produced to meet or exceed
customer requirements. These systems are often developed in conjunction with other business
and engineering disciplines using a cross-functional approach.

History

When the first specialized craftsmen arose manufacturing tools for others, the principle of quality
control was simple: "let the buyer beware" (caveat emptor).

Early civil engineering projects, however, needed to be built to specifications. For instance, the
four sides of the base of the Great Pyramid of Giza are perpendicular to within 3.5 arcseconds.

The control of production management

During the Middle Ages, guilds took the responsibility of quality control upon themselves.

Royal governments purchasing material were interested in quality control as customers. For
instance, King John of England appointed a certain William Wrotham to supervise the
construction and repair of ships. Some centuries later, but also in England, Samuel Pepys,
Secretary to the Admiralty, appointed multiple such overseers.

Prior to the extensive division of labor and mechanization resulting from the Industrial
Revolution, it was possible for workers to control the quality of their own products. Working
conditions then were more conducive to professional pride.

The Industrial Revolution led to a system in which large groups of people performing a similar
type of work were grouped together under the supervision of a foreman who also took on the
responsibility to control the quality of work manufactured.

Quality Assurance has developed a good deal during the last 80-90 years (in about 20 year
intervals) from its inception to the current state of the art.
Wartime production

During World War I, the manufacturing process became more complex, and the introduction of
large numbers of workers being supervised by a foreman designated to ensure the quality of the
work, which was being produced. This period also introduced mass production and piecework,
which created quality problems as workmen could now earn more money by the production of
extra products, which in turn led to bad workmanship being passed on to the assembly lines.

Due to the large amount of bad workmanship being produced, the first full time inspectors were
introduced into the large-scale modern factory. These full time inspectors were the real
beginning of inspection quality control, and this was the beginning the large inspection
organizations of the 1920s and 1930s, which were separately organised from production and big
enough to be headed by superintendents.

The systematic approach to quality started in industrial manufacture during the 1930s, mostly in
the USA, when some attention was given to the cost of scrap and rework. With the impact of
mass production, which was required during the Second World War, it became necessary to
introduce a more stringent form of quality control which can be identified as Statistical Quality
Control, or SQC. Some of the initial work for SQC is credited to Walter A. Shewhart of Bell
Labs, starting with his famous one-page memorandum of 1924.

This system came about with the realisation that quality cannot be inspected into an item. By
extending the inspection phase and making inspection organizations more efficient, it provides
inspectors with control tools such as sampling and control charts.

SQC had a significant contribution in that it provided a sampling inspection system rather than a
100 per cent inspection. This type of inspection however did lead to a lack of realisation to the
importance of the engineering of product quality.

For example, if you have a basic sampling scheme with an acceptance level of 4%, what happens
is you have a ratio of 96% products released onto the market with 4% defective items – this
obviously is a fair risk for any company/customer – unless you happen to be one of the
unfortunate buyers of a defective item.
Postwar

After World War II, the United States continued to apply the concepts of inspection and
sampling to remove defective product from production lines. However, there were many
individuals trying to lead U.S. industries towards a more collaborative approach to quality.
Excluding the U.S., many countries' manufacturing capabilities were destroyed during the war.
This placed American business in a position where advances in the collaborative approaches to
quality were essentially ignored.

After World War II, the U.S. sent General Douglas MacArthur to oversee the re-building of
Japan. During this time, General MacArthur invited two key individuals in the development of
modern quality concepts: W. Edwards Deming and Joseph Juran. Both individuals promoted the
collaborative concepts of quality to Japanese business and technical groups, and these groups
utilized these concepts in the redevelopment of the Japanese economy.

Quality Assurance

Quality Assurance covers all activities from design, development, production, installation,
servicing and documentation. This introduced the rules: "fit for purpose" and "do it right the first
time". It includes the regulation of the quality of raw materials, assemblies, products and
components; services related to production; and management, production, and inspection
processes.

One of the most widely used paradigms for QA management is the PDCA (Plan-Do-Check-Act)
approach, also known as the Shewhart cycle.
Failure testing

A valuable process to perform on a whole consumer product is failure testing, the operation of a
product until it fails, often under stresses such as increasing vibration, temperature and humidity.
This exposes many unanticipated weaknesses in a product, and the data is used to drive
engineering and manufacturing process improvements. Often quite simple changes can
dramatically improve product service, such as changing to mold-resistant paint or adding lock-
washer placement to the training for new assembly personnel.

Statistical control

Many organizations use statistical process control to bring the organization to Six Sigma levels
of quality, in other words, so that the likelihood of an unexpected failure is confined to six
standard deviations on the normal distribution. This probability is less than four one-millionths.
Items controlled often include clerical tasks such as order-entry as well as conventional
manufacturing tasks.

Traditional statistical process controls in manufacturing operations usually proceed by randomly

sampling and testing a fraction of the output. Variances of critical tolerances are continuously
tracked, and manufacturing processes are corrected before bad parts can be produced.

Company quality

During the 1980s, the concept of “company quality” with the focus on management and people
came to the fore. It was realised that, if all departments approached quality with an open mind,
success was possible if the management led the quality improvement process.

The company-wide quality approach places an emphasis on three aspects :-

1. Elements such as controls, job management, adequate processes, performance and

integrity criteria and identification of records

2. Competence such as knowledge, skills, experience, qualifications

3. Soft elements, such as personnel integrity, confidence, organisational culture,

motivation,team spirit and quality relationships.

The quality of the outputs is at risk if any of these three aspects are deficient in any way.
The approach to quality management given here is therefore not limited to the manufacturing
theatre only but can be applied to any business activity:

 Design work

 Administrative services

 Consulting

 Banking

 Insurance

 Computer software

 Retailing

 Transportation

It comprises a quality improvement process, which is generic in the sense it can be applied to any
of these activities and it establishes a behaviour pattern, which supports the achievement of
quality.

This in turn is supported by quality management practices which can include a number of
business systems and which are usually specific to the activities of the business unit concerned.

In manufacturing and construction activities, these business practices can be equated to the
models for quality assurance defined by the International Standards contained in the ISO 9000
series and the specified Specifications for quality systems.

Still, in the system of Company Quality, the work being carried out was shop floor inspection
which did not control the major quality problems. This led to quality assurance or total quality
control, which has come into being recently.

Total quality control

Total Quality Control is the most necessary inspection control of all in cases where, despite
statistical quality control techniques or quality improvements implemented, sales decrease.

The major problem which leads to a decrease in sales was that the specifications did not include
the most important factor, “What the customer required”.

The major characteristics, ignored during the search to improve manufacture and overall
business performance were:

 Reliability

 Maintainability

 Safety

As the most important factor had been ignored, a few refinements had to be introduced:

1. Marketing had to carry out their work properly and define the customer’s specifications.

2. Specifications had to be defined to conform to these requirements.

3. Conformance to specifications i.e. drawings, standards and other relevant documents,

were introduced during manufacturing, planning and control.

4. Management had to confirm all operators are equal to the work imposed on them and
holidays, celebrations and disputes did not affect any of the quality levels.

5. Inspections and tests were carried out, and all components and materials, bought in or
otherwise, conformed to the specifications, and the measuring equipment was accurate,
this is the responsibility of the QA/QC department.

6. Any complaints received from the customers were satisfactorily dealt with in a timely
manner.

7. Feedback from the user/customer is used to review designs.

8. Consistent data recording and assessment and documentation integrity.

9. Product and/or process change management and notification.

If the original specification does not reflect the correct quality requirements, quality cannot be
inspected or manufactured into the product.

For instance, all parameters for a pressure vessel should include not only the material and
dimensions but operating, environmental, safety, reliability and maintainability requirements.

To conclude, the above forms the basis from which the philosophy of Quality Assurance has
evolved, and the achievement of quality or the “fitness-for-purpose” is “Quality Awareness”
throughout the company.
REVIEW OF LITERATURE

This literature review provides support for a scholarly study that will investigate the effects on
organizational productivity and profitability of the implementation and functioning of high-
profile management systems. While there is a plethora of high-profile management systems, the
study which this literature review supports will be concerned specifically with two high-profile
management systems - Total Quality Management (TQM) and Six Sigma.

Literature is reviewed that develops relevant information on the history, development,

applications, and effectiveness of the TQM and Six Sigma high-profile management systems.
With respect to the effectiveness of the management systems in relation to organizational
productivity and profitability, literature also is reviewed in relation to employee job
satisfaction/dissatisfaction. Employee job satisfaction, as well as employee dissatisfaction, is a
contributor to both organizational productivity and organizational profitability.

While the high-profile management systems of greatest relevance to the study which this
literature review will support are TQM and Six Sigma, other high-profile management systems
also are reviewed. As the development of most high-profile management systems tends to be
interrelated with the development of other high-profile management systems, including other
high-profile management systems when relevant in the review of TQM and Six Sig
High quality goods and service are favored in the marketplace and high service quality
performance does produce measurable benefits in profits, cost savings, and market share
(Anderson, Fornell, & Lehmam, 1994). Research also indicated that service quality has been
increasingly recognized as a critical factor in the success of any business (Parasuraman, Zeithaml
& Berry, 1988). The topic of measuring service quality has been studied extensively in the past
fifteen years.

Many researchers have conducted studies in measuring service quality in the past twenty years.
In 1982, McCleary and Weaver indicated that good service is defined on the basis of
identification of measurement behaviors that are important to customers. Zemke and Albrecht
(1985) suggested that service plays an important role in defining a restaurant’s competitive
strategies and identified systems and strategies for managing service.

Thus, service quality, as perceived by consumers, stems from a comparison of what they feel
service providers should offer with their perceptions of the performance of service provided by
service providers (Parasuraman, Zeithaml and Berry, 1988).

The researchers also identified that there are five dimensions to service quality. The following is
a list of the five dimensions and a brief description of each:

Tangibles: (physical facilities, equipment, and appearance of personnel).

Reliability: (ability to perform the promised service dependably and accurately).

Responsiveness (willingness to help customers and provide prompt service).

Assurance (knowledge and courtesy of employees and their ability to inspire trust and
confidence).

Empathy (caring, individualized attention the firm provides its customers).

Among the five dimensions, reliability was found to be the most important of the five
dimensions for lodging consumers followed, in ranking, by assurance, responsiveness, tangibles,
and empathy (Knutson, Stevens, Wullaert, Patton and Yokoyama, 1990). Subsequently,
Knutson, Yokoyama, Patton, and Thompson (1990) analyzed the statistical methodology itself,
comparing the uses of confirmatory analysis versus factor analysis in index testing and
refinement.

Then, in 1992, Knuston, Stevens, Patton, and Thompson studied consumer expectations for
service quality in economy, mid-price, and manufacturing units. Across the three segments, they
found that the five dimensions maintained their same ranking positions and that the higher the
price category, the higher the consumer expectations of service quality.

NFL, a Schedule A and Mini Ratna Company, is the second largest producer of Nitrogenous
Fertilizers in the Country with 16.8% share in domestic production of Urea achieved in the
country during 2008-09.

NFL was incorporated on 23rd August 1974 with two manufacturing Units at Bathinda and
Panipat. Subsequently, on the reorganization of Fertilizer group of Companies in 1978, the
Nangal Unit of Fertilizer Corporation of India came under the NFL fold. The Company
expanded its installed capacity in 1988 by installing and commissioning of its Vijaipur gas
based Plant in Madhya Pradesh.

National Fertilizer has earned its reputation on account of the quality of the nitrogenous
fertilizers that it manufactures. The company was set up in the 1970s with the aim of producing
bio-fertilizers of varies types and urea ranging within its nitrogenous fertilizer category.

Production Units of National Fertilizer:

National Fertilizer has grown for more than 3 decades and has witnessed and contributed to the
evolution of the fertilizer sector. The company itself has undergone significant expansion plans
and is still awaiting more development. The company has already acquired a number of plants
dealing with bio-fertilizers and urea at different locations in India such as Madhya Pradesh,
Haryana, and Punjab. Punjab has the maximum number of manufacturing plants - one at
Bathinda and the other 2 at Nangal. The 2 production units of National Fertilizer in Nangal area
were constructed at an investment of Rs. 91.26 crore and Rs. 299.19 crore. Nangal-I is engaged
in the production of ammonia whereas Nangal-II produces both ammonia and urea. The Bathinda
plant was set up with a capital amount of Rs. 349.41 crore. National Fertilizer spent Rs. 516
crore and Rs.1071 crore to create Vijaipur-I and Vijaipur-II plants respectively, located in
Madhya Pradesh. Both these plants are run on natural gas. The Panipat plant in Haryana, similar
to Punjab's Bathinda plant produces ammonia and urea.

Upgradations of National Fertilizer:

National Fertilizer has been performing excellently – a fact that is seen from the profit ratio of
Rs. 116.40 crore in the last financial year. The amount of sales of urea rose to 33.63 million tons
in 2006, whereas the total sales turnover of the company reached Rs. 3590.53 crore in the same
year. The company was successful in manufacturing 33.44 lakh tons of urea and 175 million tons
of bio-fertilizers, with the optimum usage of its resources, approximating 103.5% in case of urea
and 75 million tons more than the average production of 100 million tons of bio-fertilizers.

Recognitions received by National Fertilizer:

The company has been accredited with ISO:9001 certification for the excellent quality of its
goods and for matching international environment criteria. The company has also been
recognized with Natural Organic Certification Association for quality of Shree Narmada-Organic
Manure in the class of agricultural inputs. In 2005, National Fertilizer won the Golden Peacock
Innovation Award for its Panipat plant and Nation Energy Conservation and Management Award
for the Vijaipur plants. The National Productivity Award for the good quality of its bio-fertilizers
was given to the company in 2003. National Fertilizer had won the Energy Conservation Award
conferred by the Indian ministry of power in the year 2000 for its Vijaipur plant.
Products of National Fertilizer:

National Fertilizer has a number of products to offer, such as magnesium sulphate, the chemical
composition of which consists of magnesium oxide and sulfur which treat magnesium deficiency
in soil. The quantity of magnesium sulphate has to be adjusted according to the requirement of
the soil from 25 kg to 50 kg of magnesium sulphate per acre and so on. BIO-Gold comprises the
bio-fertilizer category of fertilizers and its chemical composition includes phosphorus, sulfur,
nitrogen, iron, magnesium, zinc, and copper. It also works as a basal fertilizer and effective for
reclamation of salt, and it is best suited for wheat, groundnut, vegetables, and cotton. The
broadcasting method is used to apply magnesium sulphate and the quantity varies from 100 to
200 kg per acre according to the quality of the soil. The organic fertilizers produced by National
Fertilizer are environment-friendly and help the soil retain moisture by softening it and
guarantees crop-protection from termites and diseases.

The Vijaipur Plant was a landmark achievement in project management in India. The plant was
completed well within time and approved project cost. In recognition of this achievement, the
project was awarded the First Prize on Excellence in Project Management by Govt. of India.
Subsequently the Vijaipur plant doubled its capacity to 14.52lakh MTs by commissioning
Vijaipur Expansion Unit i.e. Vijaipur-II in 1997. The annual capacity was subsequently re-rated
w.e.f. 1.4.2000 from 7.26 lakh MT of Urea to 8.64 lakh MT for Vijaipur-I & Vijaipur-II Plants
each.Three of the Units Three of the Units are strategically located in the high consumption areas
of Punjab and Haryana. The Company has an installed capacity of 32.31 lakh MT of Urea. The
company produced 33.44 lakh tonnes of Urea and recorded an annual sales turnover of Rs.5127
crores during 2008-09.
NFL, a profitable public sector undertaking operates under the administrative control of
Department of Fertilizers in the Ministry of Chemicals & Fertilizers. The Company is
consistently making profits and registered a profit (PBT) of Rs.156 crores for the year 2008-09.
The Company’s strength lies in its sizeable presence, skilled manpower, Marketing and strong
distribution network nationwide.
Aiming towards further growth, NFL is already in the process of revamping its three fuel oil
based plants for change over its feedstock from FO/LSHS to NG/R-LNG and Capacity
Augmentation of Urea at Vijaipur Unit. Towards reduction of Green House Gases, Company has
already initiated action for various CDM (Clean development Mechanism) Projects so as to earn
revenue in terms of carbon credits.
NFL in collaboration with M/s KRIBHCO & RCF has formed a joint venture company (JVC)
named as Uravarak Videsh Limited (UVL) to explore investment opportunities abroad and
within country in Nitrogenous, Phosphatic & Potassic sectors and to render consultancy services
for setting up Projects in India & Abroad. A brown field gas based Urea plant at Barauni in Bihar
has been entrusted to the above Joint venture Company.
Kisan Urea NFL’s popular brand is sold over a large marketing territory spanning the length and
breadth of the country. The Company also manufactures and markets Bio-fertilizers and a wide
range of industrial products which include Methanol, Sodium Nitrate, Sodium Nitrite, Nitric
Acid, Sulphur, Liquid Oxygen, Liquid CO2, Liquid Nitrogen etc. The Company has also
developed Neem coated Urea which on demonstration has shown improved results in terms of
increase in yield by 4-5% and environment friendly. Accordingly Company has been
manufacturing and selling Neem Coated Urea from its manufacturing plants since 2002-03 The
Company is further focusing its thrust to widen the marketing operations of Neem coated Urea.
The company has also taken initiative to make available other agro inputs under single window
like quality seeds, Insecticides and Bio-pesticides by collaboration with other reputed
organizations. R&D trials are under way for testing the efficacy of Bio-pesticides, elemental
Sulphur, in collaboration with Agriculture Institutes.
NFL over the years has developed a team of dedicated professionals in the areas of production,
maintenance, project management, safety and environment control. These professionals are
sought after in the Industry both in India & abroad for their Specialized Services.
NFL is known in the industry for its work culture, value added human resources, Quality
Management, Safety, Environment, Concern for Ecology and its commitment to social
upliftment and to ensure their compliance, All NFL plants are certified and being maintained
under ISO-9001 (2000), ISO-14001 & OSHAS-18001 by conforming to International Quality,
Environmental & Occupational Safety & Hazards standards. With the certification of Corporate
Office/Marketing operations under ISO-9001: 2000, NFL has become the first Fertilizer
Company in the country to have its total business covered under ISO-9001 Certification.
Urea is an essential commodity under the Essential Commodities Act, 1955. The Department of
Fertilizers (DoF) plans and monitors production, import and distribution of fertilizers and
manage the subsidy for indigenous and imported fertilizers in the country. In this regard, DoF
has set up an on line web based Fertilizers Monitoring System (FMS). Presently Fertilizer
companies are allowed to market 50% of their total Urea produce out side EC allocation.
The Department of Public Enterprises, Govt. of India in order to improve accountability and
giving higher autonomy to Public Sector Undertakings, introduced the concept of MoU from
early nineties NFL enters into a Memorandum of Understanding (MoU) with the Government for
each year under which the Government undertakes to assist NFL with regard to availability of
inputs, obtaining ECA allocations commensurate with the availability of fertilizers from NFL
plants etc. NFL on its part undertakes to adhere to its production and movement plans, achieve
its ECA allocation and provide regular feedback to the Administrative department. NFL signed
first MoU with Department of Fertilizers (DoF) for the year 1991-92. The company has been
awarded Excellent rating for the fiscal year 2007-08, which is 8th excellent rating in a row.
1. Chairman & Managing Director
Shri V. K. Sharma
National Fertilizers Ltd
Corporate Office, NOIDA (U.P.)
Director (Finance)
2. Ms. Neeru Abrol 
National Fertilizers Ltd. 
Corporate Office, Noida (U.P.)
3. Shri R.K .Aggarwal Director (Technical)
National Fertilizers Ltd. 
Corporate Office, Noida (U.P.)
4. Shri Sudhir Bhargava Director
Joint Secretary Government of India 
Department of Fertilizers,
Shastri Bhawan, New Delhi 110 001
Director
5. Shri Satish Chandra
Joint Secretary 
Government of India
Department of Fertilizers
Shastri Bhawan, New Delhi 110 001
6. Shri S.A.T. Rizvi Director
Tazo-Cottage,
3/1, Vijay Khand,
Gomti Nagar,
 Lucknow-226010
7. Director
Shri N. K. Goyal
C-73, DDA MIG Flats,
Saket,
New Delhi-110017

8. Director
Dr. Subir Kumar Bhattacharyya
34/2, Mahim Halder Street,
Kolkata – 700026
PLANTS

NFL Operating Plants  are at :

National Fertilizers Limited,

Vijaipur,
Distt. Guna,
Madhya Pradesh-473111.
Email : cc@nfl.co.in
Fax    : 07544 - 273089, 273109
Tel.    : 91- 7544 - 273101, 273090

Vijaipur Plant

National Fertilizers Limited,

Gohana Road,
Panipat,
Haryana-132106.
Email : nflpanipat@nfl.co.in
Fax    : 0180- 2652515
Tel.    : 0180- 2652481 to 485, &
0180- 2655570
  Panipat plant
 National Fertilizers Limited,
Sibian Road,
Bathinda,
Punjab-151003.
Email :  nfladm@nfl.co.in
Fax    : 0164- 2270463;  0164- 2271270
Tel.    : 0164- 2270220/2271200  
Bathinda plant    
National Fertilizers Limited,
Naya Nangal,
Distt. Ropar,
Punjab-140126.
Email :   nangal@nfl.co.in
Fax    :  0187-220541
Tel.    :  0187-220543

  Nangal Expansion Plant

KISAN UREA

Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer, containing 46.0%. It is

completely soluble in water hence Nitrogen is easily available to crops. It contains Nitrogen in
amider form which changes to ammonical forms and is retrieved by soil colloides for longer
duration. Urea is available in granular form and can eb applied by drill and broadcasting.
Kisan Urea is ideally suitable for all types of crops and for foliar spray which instantly removes
nitrogen deficiency. Kisan Urea also has a strong and long lasting effect on crop resulting in
bumper crops Carbonic acid present in Kisan Urea helps in absorption of other nutrients like
phosphate and Potash by roots of crop.
FOOD GRAINS   CASH CROPS
  Rice   Sugarcane
  Wheat   Cotton
  Millets   Jute
  Jawar   Fodder
  Bajra
  Maize
  HORTICULTURE   VEGETBLES AND OIL SEEDS
  Apple   Castor
  Banana   Cotton Seeds  
  Grapes   Groundnut
  Mangoes   Mustard  
  Orange   Sunflower
  Papaya   Sesame
  Pineapple   Soyabeen
  Onion
  Potatoes
  Tomatoes
  Mushroom
  Cabbage           
  Cauliflower

NFL manufactures and markets three types of Bio-Fertilizers, Rhizobium, Phosphate

Solubilishing Bacteria (PSB) and Azetobactor. Starting with a mere 23 MT production in 1995-
96, the production has risen to 204 MT (Approx) in 2007-08. The Company presently markets its
bio-fertilizers in Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttrakhand, Chattisgarh, Bihar,
Jharkhand, Himachal Pradesh, Jammu & Kashmir, Punjab, Haryana & Rajasthan.

Bio-fertilizers are used to supplement chemical fertilizers as also to maintain soil fertility;
besides the following:-

1. Bio-Fertilizers are Supplement to Chemical Fertilizers.

2. Bio-Fertilizers are cheap and can reduce the cost of cultivation.
3. Fix Biological Nitrogen in the soil, which is readily available to the plant.
4. Increase crop yield by 4-5% on an average.
5. Improve soil properties and sustain soil fertility.
6. Provides plant nutrient at low cost and useful for the consecutive crops.

The applicability of Bio-Fertilizers marketed by NFL of different crops is as under:

Name of Bio-Fertilizers   Contribution   Most Beneficiary Crop

  Pulse Legumes : Gram, Peas, Lentil,
  A. NitrogenBio-Fertilizer a) Fixes50-300 Kg. N/hactre Moong, Urd, Cowpea, Arhar. Oil
  b)Leavesresidualnitrogenfor Legumes : Groundnut and Soyabeans.
  1. Rhizobium(Symbiotic) succeedingcrop. Fodder Legumes : Barseem, Lucorn.
c) Increase yield by 10-35% Forest Legumes : Sababul, Shisam,
 
d) Maintains soil fertility.  Shinsh.

Wheat, Jowar, Barley, Maize, Paddy,

a) Fixes 20-40 mgN/g of C-Source
   2. Azetobactor Mustard, Sunflower, Sesamum.
b) Produces growth promoting
    (Non-Symbiotic) Cotton, sugarcane, banana, grapes,
substances like vitamin B groups,
papaya, watermelon, onion, potato,
Indole acetic acid and Giberellic acid.
tomato, cauliflower, chilly, lady
c) 0-15% increase in yield.
finger, rapseed, Linseed, tobacco.
d) Maintains soil fertility.
Mulberry, Coconut, spices, fruits,
e) Biological control of plant diseases
flowers. Plantation crops, forest plants
by suppressing some plant pathogens.

B)  Phosphorous a) Solublizes insoluble phosphate. Non-specific : All Plants.

      (Bio-fertilizer) b) Increases yield by 10-30%.
  1.  P.S.B. Phosphate c) Produce enzymes which mineralize
       solubilising Bacteria organic phosphorous to a soluble form.

NFL manufactures and markets the following Industrial Products.

Product
Chemical Specifications Used for/Industry Packaging
Formula Supply
Methanol Minimum 99.8 wt%  Specific * Formaldehyde Supplied
(CH3OH) gravity   (Max.0.7928 at 20oC) * Automotive antifreeze in Road 
* Chemical Synthesis Tankers
* Aviation Fuel
* Rocket fuel
* Dehydrator for natural
   gas
Nitric Acid HNO3 by wt.54% and * Organic Synthesis Road Tankers
Dilute (HNO3) 60%concentration. * Photo engraving
Balance water * Medicine
* Preparation of Nitro
* Compounds Oxidiser in liquid
rocket propellants
* Refining of Silver

Ammonium Flakes  95% concen. Balance water * Explosives, Pyrotechnics Flakes in

Nitrate * Herbicides & Insecticides Polethene
(NH4NO3) * Nitrous Oxide HDPE Bags
* Absorbent for Nitrogen Melt in 
Melt Concen 82-84% Balance water    Oxides
Stainless Steel
* Ingredient for freezing road tankers.
   mixtures
* Oxidiser in solid rocket
   properties
* Nutrient for Antibiotics & yeast
* Catalyst
 Rubber & Tyre Industry Suger Industry

Sulphur (S) 99.5% purity Moisture 0.5% * Sulphuric Acid   Loose

* Sugar Industry
* Rubber & Tyre Industry

  

Textile finishes         Paints & Dyes

   
     
    Drugs & Pharmaceuticals.       

Industrial Nitrogen 46.6% * Animal Feed 50Kgs.HDPE

Grade Urea Moisture 0.4%-0.5% * Synthetic resins Bags.
(NH2CONH2) Melting Point 131oC * Textile finishes
Biuret Less than 1.0% * Melamine Resins
* Paints & Dyes
* Drugs & Pharmaceuticals.
 Steel Manufacturing

Liquid 97-98% purity Inerts 2-3% * Steel Manufacturing Road Tankers

Oxygen(O2) * Copper Manufacturing
* Welding & Cutting
* Medical purposes.
Liquid 99.99% purity 0-10 PPm Oxygen *Animal Husbandry for Semen Cryogenic
Nitrogen(N2) preservation bottles for
* Electronic Industry small
quantity;
bulk in road
tankers.

  
Rubber industry
Rubber industry
Carbon Slurry Carbon on dry basis by wt.– 98%, * Rubber industry   Loose
[C] Ash etc.– 2% * Ink making industry

Aerated water
Carbon dioxide CO2 (97-98%) purity Inect gases – 2 * Aerated Water Through
Gas (CO2) to 3% Methanol by wt.500 PPm * Dry Ice pipe line
(Max) H2S – 1 PPm (Max)

Anhydrous 99.5% purity (mm) * Nitric Acid production Road

Ammonia * Urea Production Tankers
(NH3) * Hydrazine
* Nitriding of Steel
* Refrigerant Solvent
* Yeast Nutrient
* Rocket Fuel
* Reducing Agent for Ores
Sodium Nitrite 97.00% purity by wt.NaNO3 – 1% * Organic synthesis 50 Kg
(NaNO2) by wt.Moisture and Volatile matter * Rubber additives HDPE Bags
1.0% * Chemical reagent
* Pharmaceuticals
* Photographic regent
* Pickling meat
* Medicines
* Dyeing & Printing of
   Fabrics
* Rust Proofing etc

       

            Glass manufacturing

Sodium Nitrate 98% purity by wt.Na NO2 – 0.5% * Oxidising agent 50 Kg

(NaNO3) Moisture – 1% * Oxidizer in solid rocket HDPE bags
   propellants
* Fertilizers
* Glass Manufacturing
 * Chemical Reagent
* Dynamities/matches
* Military Explosives
* Refrigerant/Medicines

Aircraft & Missile industry

Liquid Argon 99.999% purity Oxygen 0.5PP * Arc Welding Road

(Ar) Nitrogen 0.2PPm Maximum impurity * Plasma cutting Tankers
10PPm H20 0.1 PPm * Lamp industries
* Aircraft & Missile industry
* Cryogenics & Refrigeration
* Gas Crhomatagraphy Gas analysis
* Copper refining;
* S.S.Production
* Metal Refining.

Liquid CO2 Purity: 99.93% * Aerated water Road

(CO2) CO : <5 PPm * Dry Ice Tankers
O2 : < 10 PPm
Oil : NT
Methanol : NT
H2S : NT
Off Grade Methanol : 60-80%      Road
Methanol Higher alcohol :5-10% Tankers
(CH3OH) Water : 20-30%
 OPEN SALE PRICE OF INDUSTRIAL PRODUCT

Sl Product Plant Basic sale price

No

1 Liquid Oxygen Nangal Rs.4.60per NM3

Bathinda Rs.4.75 per NM3

Panipat Rs.5.50 per NM3

2 Liquid Niitrogen Nangal Rs.4.00 per litre

Bathinda Rs.4.00 per Ltrs

Panipat Rs. 4.70 per Ltrs

3 Liquid Argon Panipat Rs.35/-per NM3

4 Liquid Carbon-di- Panipat Rs.3.80 per KG Rs.3.50 per

oxide KG
Nangal

5 Sodium Nitrate Nangal Rs.26000/-PMT for Punjab

Rs.25800/-PMT outside Pb.Traders
Rs.24800/-PMT outside Pb.
Consumers
6 Sodium Nitrate Nangal Rs.29,000/-PMT for Punjab
Rs.28,000/-PMT for
Haryana/UP/Delhi/Raj/MP/Uttaranchal
Rs.27,000/-PMT for
WB/Bihar/J.Khand/Mah/Guj/Chh.garh
7 Nitric Acid (54%) Nangal Rs.8,600/-PMT
Nitric Acid (60%) Nangal Rs.9,500/-PMT for North India market
Nitric Acid (60%) Nangal Rs.8,700/-PMT for distant market
 Nitric Acid (60%) Nangal Rs.8,700/-PMT for Guj.,Udaipur, Kota
Jodhpur
8 Carbon-di-oxide gas Nangal Rs.1,700/-PMT
Bathinda Rs.1733/-PMT
Panipat Rs.1877/-PMT
9 Ammonium Nangal Rs.19000/-PMT
Nitrate(Lumps)
10 Ammonium Nangal Rs.17800/-PMT on 100% basis.
Nitrate(Melt)
11 Ammonia Vijaipur-I Rs.16850/-PMT (By road tankers)
12 Sulphur Nangal Rs.5100/-PMT
Bathinda Rs.5100/-PMT
Panipat Rs.5100/-PMT

The current basic prices of Industrial Products against open sale are give

NFL has a proven track record of over two decades in the areas of Project Management, Plant
operation and Maintenance etc. NFL provides its expertise in the areas of specialised services.

                     
                      

Heavy Equipment Erection

Maintenance of Rotary Equipments

 NFL is well known for taking up assignments in India and abroad in the fields of:
 Commissioning Activities of Plant/ Equipments
 Heavy Equipment Erection supervision
  Complete operation of Chemical plants on a continuous basis
 Overall maintenance of plants; Specialized maintenance and repair
services/shutdown/turn around jobs.

 Special maintenance & repair services for rotatory equipment, like pumps,  compressors,
turbines etc.
 Energy Audits leading to energy savings
 Safety Audit Services
 Design and monitoring of Environment Protection Systems
 NDT, Corrosion and RLA services
 Laboratory Services
 Training of technical manpower in Operation Maintenance and Safety Management
 Consultancy in Project Management
 Assignments Taken Abroad
 Assistance in   checking the operatability and maintainability of PETROBRAS  
Fertilizer Plant in Brazil and training of Specialist Welders.
 Assistance in operation and maintenance of Ammonia and Methanol Complex of Gulf
Petrochemical Industries Co., Bahrain.
 Assistance in operation and maintenance of Ammonia Plant of NAPETCO, Libya
through UNIDO.

List of select Assignments & Clients. Undertaken By NFL in  Past Years

International Assignments

Assignments Organisation

Assistance in checking the operatability & maintainability  of PETROBRAS fertilizer plant in

Fertilizer Plant & training of specialised Welders. Brazil.

Assistance in the operation & maintenance of Ammonia & Methanol Gulf Petro chemical Industries Co.,
complex plants. Bahrain.
Assistance in the operation & maintenance of Ammonia Plant NAPETCO Libya (through UNIDO)

Commissioning supervision of three fuel oil based fertilizer plants China, through Toyo Engg.
in China. Corporation,Japan.

Assistance in the Commissioning of Ammonia/Urea plants. Venezuela through M/s.Snam

Progetti, Italy.

Contracts/MOU under negotiasion with for Specialised Services

 Engineers India Ltd.

 Petroleum India International

 National Productivity Council         

SERVICES RENDERED IN INDIA

Assignments Carried Out Organisations in India

Gujarat Narmada Valley Corpn.Gujrat

Hindustan Fertilizer Corpn.West Bengal

Paradeep Phosphates Ltd. Orissa.

Compressor Stations under    SPIE-

CAPAG/NKK/TOYO CONSORTIUM on HBJ gas
pipeline.

Operation of various Gas Stations of Gas Authority of

India Ltd.(GAIL)

Numaligarh Refineries Ltd.,Assam

Indian Oil Refinery,Panipat,Haryana

Haldia Petrochemicals,West Bengal through

ToyoEngg.Corporation (TEC) Japan.

Chambal Fertilizers, Gadepan through TEC Japan.

Assistance in the preparation of comprehensive Ministry of Programme Implementation Govt. of India.

manual on project implementation.

Formulation of Award Scheme for excellence in Fertilizer plants at National level.

project implementation and formulation of Award
scheme.

Designing Incentive and Motivation Schemes. Public Sector Fertilizer Companies in India.

Preparation of Corporate Plan. Paradeep Phosphates and Chemicals Ltd.,(PPCL)

Preparation of Corporate Plan. Services with regard to Projects & Development India Ltd.
investigation of industrial accidents/ mis-haps,

Organisation restructuring. Hindustan Fertilizer Corporation New Delhi.

Computerisation of maintenance system A.P. Rayons Ltd., Andhra Pradesh.

Assistance in the preparation of comprehensive Ministry of Programme Implementation,Govt. of India.

manual on project implementation.

Award Scheme for excellence in project Fertilizer Companies at National level.

implementation and formation of award scheme  for
excellence in annual performance.

The complete farmer satisfaction through best services is the drawing force of NFL’s marketing,
strategy. The Company has expanded its programme from improving the crop productivity at
farm level to the over all development of the farming community.
To provide to the farmers high quality products in the right time, NFL has an extensive and
integrated marketing network. The Company provides a comprehensive capsules of various
fertilizer promotion activities, which includes agronomical programmes, use of extension media,
publicity and farmer development programmes.

Soil testing services are provided free of cost to the farmers to advocate the balanced use of
fertilizers at economic levels. One mobile soil-testing unit caters to the need of the remotest of
remote farmers in far areas and provide technical guidance to the farmer at field level.
Soil testing services

Other farm services include fertilizer demonstration on cultivators fields, field days,
fertilizer/farmers Mela, pilot project, adoption of villages etc. NFL also conducts various
training programmes to educate the farmers on the balanced use of fertilizer and its timely
application besides providing guidance on pesticides & fungicides.

Educating the farmers

NFL’s Farmer Training Centre at Vijaipur caters to the training needs of small and marginal
farmers, particularly those belonging to tribal areas in the State of Madhya Pradesh. The training
schedules are tailor made to suit the requirement of the farmers. To commemorate the 50th
anniversary of India’s independence, the Company has undertaken a Sustainable Integrated
Rural Development Programme, titled ‘Sulabh, National Fertilizer Development Initiative for
Tribal Areas (SUNADITA). The mission of the project is to help the farming community in
eradicating poverty and empowering people with self sustaining process of economic well
being.

Memorandum of Understanding (MoU) is a negotiated agreement between Government as

owner of public enterprises and the management of the Public Sector Enterprises (PSEs). MoU
is meant to measure the Performance of Management of PSE at the end of the year in an
objective and transparent manner.
In the search of improving accountability and giving higher operational autonomy to Public
Sector Undertaking, the Department of Public Sector Enterprises (DPE) Government of India
introduced the concept of Memorandum of Understanding (MoU) in early nineties. The new
Industrial Policy of 1991 made it mandatory for all PSUs to enter in to MoU with their
respective Administrative Ministries. The MoU over these years has gained significant
improvement from the fact that it reflects the company’s overall composite rating and secondly
the performance of the Chief Executive of the company is partly seen through MoU. The
strengthening of existing system of monitoring PSUs through MoU is an important element of
the present policy of the Government.
NFL started signing MoU from the year 1991-1992 and has been getting Excellent rating for
most of the years. NFL's MoU rating from 1991-92 to 2007-08 is given below

MoU RATING:

YEAR RATING

1991-92 Excellent

1992-93 Excellent

1993-94 Excellent

1994-95 Excellent

1995-96 Excellent

1996-97 Fair

1997-98 Very Good

1998-99 Good
1999-00 Very Good

2000-01 Excellent

2001-02 Excellent

2002-03 Excellent

2003-04 Excellent

2004-05 Excellent
2005-06 Excellent
2006-07 Excellent

2007-08 Excellent
2008-09 Excellent
2009-10 Excellent
NFL has a long tradition of nurturing the environment in and around its manufacturing Units. At
NFL, we believe in sustainable development without degrading the environment and are fully
committed to our responsibility to the Society. In line with our commitment to this object, we
have installed with state of art effluent treatment facilities at all our Units. At NFL Vijaipur the
Company has adopted cleaner technology to minimise generation of pollutants.

All the pollutants generated in the manufacturing process are treated at source and pollution
control schemes have been incorporated at the inception stage itself.

 NFL meets the standards prescribed by the Central and State Pollution Control boards
and ensures that our Pollution Control measures and upgraded from time to time. The
major facilities available at NFL's operating Units are :

a)   Installation of NOX Abatement Scheme alongwith associated sodium nitrite/nitrate

plants for    Nitric Acid Plant at Nangal.

b)    Provision of Thermal Urea Hydrolyser at Nangal.

c)    Facilities for cyanide and chromate treatment of effluent from carbon recovery and
cooling towers sections at Nangal.

d)    Provision of accoustic granulators for reducing dust emmissions from Prilling
towers  at Panipat & Bathinda.

e)    Provision of additional electrostatic precipitators on all the coal fired boilers at
Panipat, Bathinda and Nangal.
 The Company has also adopted an extensive Afforestation programme and has planted
more than 1.5 lakh trees of different species. The once barren stretch of land around NFL
Vijaipur Unit in Madhya Pradesh is now a lush green belt with about 1.5 lakh trees-which
stands testimony to the Company's Commitment to environment preservation.
 The Corner stone of NFL's meritorious track record is its human resource. At NFL, we
firmly believe that our employees are our most valued resources.

NFL has always been a forerunner in the fertilizer sector and this has been made possible
through the company's thrust on human resources development.

 NFL offers a host of exciting career/opportunity to dynamic/young/qualified individuals

in Production/Maintenance/Marketing/Finance and Human Relations. NFL has three
induction levels Management Trainees/Technicians & Operator Apprentices &
Commercial Apprentices. Developmental and functional programs based on training
needs, as judged in the area of updation of technical supervisory and managerial skills
alongwith specialized requirements from time to time.
The services which have been developed in the area of Training and Development within
the organization are readily available to other organizations within the laid policies and
procedures of the Company.

Caring Organization

The Company's concern for its employees is reflected through its efforts in the area of
health, safely and welfare of its employees. NFL not only meets the statutory obligations,
but has undertaken numerous voluntary measures beyond the statutory requirements. The
Company has well equipped hospitals, canteens recreation clubs, housing facilities,
schools and safe working environment. The onus of NFL's high production levels lies on
harmonious and cordial industrial relations at all its manufacturing Units. The Company
has not lost even a single manday on this account.
 To cater to the needs of training and development, NFL has a well defined and well
designed training plan. Major activities undertaken by HRD are:

Recruitment and Training of Trainees at various levels viz. officers, supervisors and
workers.
Organizing of developmental and functional programs based on training needs, as judged
in the area of updation of technical, supervisory and managerial skills longwith
specialized requirements from time to time.
Imparting of training to people from other organisations within India and abroad.
Formulate policies regarding manpower deployment on hire to other organisations within
India and abroad.
The services which have been developed in the area of Training and Development within
the organisation are readily available to other organisations within the laid policies and
procedures of the Company.

MANPOWER STATUS AS ON 28.02.2010

TOTAL NON -
UNIT EXECUTIVES
EMPLOYEES EXECUTIVES

1510 342 1168

NANGAL

873 335 538

BATHINDA

904 374 530

PANIPAT

842 394 448

VIJAIPUR

458 316 142

CMO

173 141 32
CO

4760 1902 2858

TOTAL

40.02 59.98
PERCENTAGE
MAINTAINING QUALITY BY IMPROVING EMPLOYEES' WORK
PERFORMANCES
The success and profitability of your company depends on both quality and quantity output of
your department. Whether you work in an office, plant or in the field, there is a close relationship
between quality and quantity in many of the processes and operations. But you should never
permit quantity to supersede quality. While employees may try to produce all they can, they must
maintain quality. For the long term, the payoff is always on quality.

 If you don't place quality ahead of quantity in supervising others, products will eventually
be rejected, piled up in the department or sent back from later steps in the process. Other
departments will complain, customers will stop buying, costs will rise and profits will
disappear. The result is likely to be neither quality nor quantity output from your
department.

 Setting and Implementing Quality Standards for Employee Output

 Ensuring that employees' output is of high quality starts with written guidelines
specifying the standard of quality required. In some industries, standards are set by local,
state or federal enforcement agencies, such as the EPA. In others, standards are set by
groups like the Food and Drug Administration or the various organizations that set
standards for specific industries.

 Your job is to make sure that employees know and understand these guidelines. You
must also see that the required quality control checks are being made and that the tests are
verifiable. Your first step toward reaching these objectives is to rewrite official and
technical jargon into simple standard operating procedures. Then review them with your
people and quality control analysts to assure they understand and are able to follow them.

 Once these standards are implemented into your operations, you must now regularly
confirm that the department's analysts or inspectors are tested. Although it's more
expensive to intersect performance evaluation samples into the system of real samples,
it's the best way to insure a quality product.
 If an analyst fails the test, consider all the possible reasons. An incorrect analysis could
be due to an error in the system, such as a problem with the instrumentation. If the failure
is due to an analyst's error, what you do is dictated by the experience level of the person:

 If it's a human error by an entry-level employee, additional training or coaching will help.

 If it's a human error by an experienced employee, it's probably due to a lack of

concentration. Point out the problem in a non-accusatory manner. Work with the person
to determine the cause, and then do anything you can to improve the person's
performance.

 High Quality Keeps Costs Down

 If any of your people claim that emphasizing quality always causes costs to rise, correct
the person's thinking. Point out that, if high quality is maintained, the cost of the products
is usually less. When a company places a high priority on the quality of its products,
operating and manufacturing costs are usually lower. But some employees may question
that this actually occurs. You can sell the importance of the company putting out high-
quality products on an ongoing basis in a number of ways:

 Tell your people that the best and most immediate way to reduce the cost of a product is
to make it right the first time. When you produce scrap, costs go up because you are paid
for your time on the job, machine costs are incurred and productive capacity is wasted on
something the company can't sell. All those wasted costs are tacked on to the remaining
good products.

 Convince them that it's to their advantage to do error-free work. Their chances to get
ahead in the company are directly related to the high standards of work performance they
set for themselves.

 Point out that when customers buy the company's product, they expect it to be free of
defects. If the company ships some questionable or low-quality products, either
inadvertently or to meet a customer deadline, and the customer detects the poor quality,
 your company has a real problem on its hands. The products may be returned collect --
your company pays the freight costs. Then there's also the possibility that the customer
may be lost and the company may never get another order. In such cases, poor quality can
be very costly.

 Tell them that defects hurt the company's reputation in the marketplace. Customers don't
buy the company's product if they've heard it could be defective because other products
the company has made have proved faulty. Tell an employee who is difficult to sell on
quality that when a defect is traced back to him or her, and the cause is carelessness, the
incident puts a black mark on the person's record that's hard to erase.

 Emphasize that, if the company's products bear a trademark, the symbol supposedly
assures buyers of a certain level of quality. Advertising frequently mentions trademarks
in telling and persuading customers that they can trust the product. But trademarks don't
mean much if that trust is broken. The result is that the cost of advertising is for naught if
the quality of the product is poor.

 Stress liability which is a factor to be recognized and reckoned with. If the company is
taken to court, subjected to government-mandated recalls, adjustments or other
settlements because of product defects or failure to perform as claimed, making matters
right can be very costly.

 Talk about pride. A serious as well as costly effect of turning out poor-quality products is
what such workmanship does to you. You have no pride in your work. If you are
determined to build quality into the company's products, you usually like your work.
When you like your work, your productivity is high. High productivity of employees
means low operating costs for the company.

 Preventing Employee Stress From Affecting Quality

 Because quality of the company's product will not maintain itself, you must constantly
put pressure on your people to assure that it stays at a high level. This means that
employees may be under stress. But there's nothing harmful about the fight kind of stress.
 While any kind of stress will bring about a change in productivity, stress that induces
fear, anger or frustration will usually result in more negative than positive effects. Here's
what happens:

 Employees who are in constant fear of a reprimand or of losing their jobs will waste
productive energy coping with this fear. Employees who are angry because of an injustice
or humiliation will experience a slow burn, affecting their performance on the job.

 Employees who are frustrated by inadequate time, tools, materials or training vent their
feelings by becoming destructive or simply by turning off.

 Conversely, stress that challenges, arouses competitive feelings or encourages initiative

will be positive in its effect.

 Employees who are challenged with a difficult assignment will call upon all their creative
and innovative skills to come up with a solution that is both practical and cost effective.

 Employees who must use all of their knowledge and skill in order to compare favorably
with others who are also putting out will excel both quantitatively and qualitatively.

 There's nothing wrong with putting pressure on your people to maintain or improve
quality. However, to prevent stress from affecting quality, it should be positive.
Encourage employees to achieve. a quality level that may be hard to attain, but that is
possible with the existing tools, time, materials and training.

 Preventing Employee Attitude From Affecting Quality

 Some people have a cheerful way of glossing over their shortcomings by saying,
"Everybody makes mistakes." Yet if they were to look the truth in the eye, they would
have to admit that mistakes are avoidable; they don't often make them when they are alert
and paying attention. Here are some suggestions on how to deal with such people to turn
their thinking in the fight direction. Say to them:

 Keep your personal worries to a minimum. Stay rested, healthy and maintain good
relationships with others. A troubled mind will cut into quality workmanship fast.
 Think quality whenever you start a new project or a new week of work. Stress the quality
part of the work from the beginning; it will become a habit.

 Learn where your primary quality weakness is, and figure out what you need to solve the
problem. Inspect or check your own work.

 Find out what happens next to the part, item or material you work on. See what the
assembly or finished product looks like. Your work will mean much more to you.

 Remember the importance of quality and good workmanship. Dispel the idea that
mistakes should be expected. Maintain a mental picture of doing the job right.

 Set quality quotas for yourself. Life is more fun and work is more enjoyable when you try
to reach your own goals.

Helping Employees to Minimize Rework of Poor Quality Products

 You can reduce costs by talking to your people about what they can do to decrease the
number of defective products and thereby minimize product rework. Start by telling them
that absenteeism and tardiness result in more rework of products. Explain that when they
are not at work, their substitutes are likely to make mistakes because of not being familiar
with the job. Then give them reasons why defects occur. Tell them they are more likely to
make mistakes when:

 They're in a hurry to finish their work for any of several reasons.

 They allow their mind to wander and don't give their full attention to their work.

 They're tired and unable to think clearly.

 They have a poor attitude, such as not caring if their work is not perfect.

 They use the wrong tool for the job or the right tool improperly.

 They've allowed their workplace to become messy and unorganized.

 They don't make an effort to be careful.

 Developing Quality Job Habits

 Your guidance, ability to evoke the competitive spirit in employees and power to
motivate them can prove to be effective ways to improve their work performance. Here
are eight ways you can develop quality job habits in your people:

 Start new employees off right by setting high performance standards for them. Make sure
they understand what you expect of them, and see that they get the proper training for
their jobs.

 Get to know all your people. Talk to them about how they are doing on the job. Tell them
how they can improve and give them recognition when they do.

 Don't accept less than the best from an employee. If a person's job performance is
inferior, find out why. It may be that he or she needs additional training or individual
coaching.

 Encourage creativity and innovation. Give employees credit for suggestions; your
recognition promotes pride which is the key to quality performance.

 Focus on good workmanship and attention to the job. Quality-conscious employees

realize they must make products that satisfy customers to maintain the company's
competitive edge and to protect their own job security.

 Do a thorough job of inspection. Careful inspection insures high quality in machine and
equipment maintenance and in employee performance, provided you can trace problems
to their causes and correct them.

 Work closely with other departments and supervisors. A good quality control program
requires the participation and cooperation of all employees and supervisors.

 Promote quality performance of employees with top*notch leadership. As a supervisor,

you set the pattern of attitudes in your work group. Once employees get the quality habit,
they take pride in being part of a team that turns out high-quality products.

 W.H. Weiss is a consultant in industrial management. He served 41 years in various

management positions in the technical, production and engineering departments of The
 Goodyear Tire & Rubber Co. He has a B.S. in chemical engineering from the University
of Illinois and an M.B.A. from Kent State University. He is a registered professional
engineer in Ohio, and has written four books, as well as many articles on human relations
management and engineering.

OBJECTIVES OF STUDY

 To study the functioning of National Fertilizers.

 To study the consumer perception towards National Fertilizers.

 To study the quality management and its system in the National Fertilizers.

 To find out knowledge regarding the product quality management system.

 To get information about maintaining quality standards at National Fertilizers.

 To study the relation between the quality standards and its management system in the
organization.
 RESEARCH METHODOLOGY
 For achieving the objectives of study, survey was conducted. For survey, personal
interviews of the Management & workers were undertaken. Personal interviews was
selected as the mode of survey to make the study more meaningful & so that maximum
information could be collected. For conducting the personal interviews of the workers, a
questionnaire was made. The questionnaire was structured with open ended & close
ended questions.

 The Management was interviewed on various aspects likely to have impact on the
absenteeism & on the turn over of the employees viz. no. of the leaves allowed to the
employees, procedure for the promotions, increments in pay, bonus schemes incentive
sector etc. given to the employees.

 USEFULNESS OF STUDY

 The study can be useful to executives of the company as they might come to know about
the importance of consumer perception and quality control in the National Fertilizers.
The study can be of great importance to the consumer as it can show them how quality is
maintained in the company.

 Type of Research

 The Research is Descriptive Research which is fact finding in nature.

 Descriptive Research
 Descriptive research includes survey and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs, as it exists at
present.

 Basis of study
 The study will be based on primary as well as secondary data.
 Primary Data
 Interview with Bank Employees of the various units and the information was collected
from the National Fertilizers with the help of a structured questionnaire.

 Secondary Data
 Secondary Data collected from the National Fertilizers broachers, magazines and related
literature.
 Sample Size:

 I have covered 50 consumers and 50 employees in National Fertilizers.

 Types of Data:

 I have used printing as well as secondary data. Some data is been taken from internet,
some from National Fertilizers literature and some is gathered through questionnaire.

LIMITATIONS OF STUDY

 The information provided by the employees is not definitely true.

 The samples of employees are not representative of the total workforce.

 The workers hesitate disclosing the true facts in order to secure their job.

 There is no measure to check out whether the information provided by the employees is
correct or not.

 The behaviour of the Organisation is not co-operative while giving information, so it is

very time consuming.
SWOT ANALYSIS

STRENGTHS

 High capacity to produce.

 Percentage of profits in industrial products is very high.

 The company with an excellent track record of high profits.

 The NFL plants are located in virgin market for some of the industrial products.

 An easy starter more that 25 years experience in the fertilizer industries.

 Highly situated amidst high fertilizer consumption areas in the state of Punjab, Haryana

and Madhya Pradesh.

 Lower capital cost- plants at Bathinda, Panipat and Nangal. Fully depreciated Vijaypur

plant with an investment of Rs. 533 crores and vijaypur expansion plant with an

investment of Rs. 1071 crores against the present glass root plant cost of about Rs. 1500

crores.

WEAKNESSES

 Large equity base.

 Old and energy intensive fuel oil based Nangal, Panipat and Bathinda requiring high

maintenance.

 High cost of production in fuel oil based plants.

 High investments for revamp/replacement and change over of feedstock from fuel oil/

LSHS to LNG.

 Single nutrient product base.

 Highly centralized system.

 Lack of sufficient promotional and publicity activities.

 Requirement is seasonal.

OPPORTUNITIES

 Growth in fertilizer consumption in the eastern market of the country.

 lizeMarketing of neem coated urea of large scale.

 Marketing of agriculture inputs/services under one roof.

 Marketing of other fertilizer like DAP, MOP, SSP to harness existing imbalance in

nutrients base and to move towards the NPK ratio of 4:2:1

 Marketing of seeds and pesticides.

 Marketing of specialized services and association in joint venture in India/abroad.

 Growth in the production of Bio-fertirs.

THREATS

 Decline in the consumption of nitrogenous fertilizers in predominant market areas.

 Energy intensive i.e. fuel oil based could face closure due to new policy on fertilizer

unless technology modifications are implemented.

 Dismantling of distribution system.

 Availability of cheaper improved fertilizers.

 Increasing price of inputs i.e. fuel oil/LSHS/Naphtha/gas in India.

 Requirement of large investments for modernization of fuel oil/LSHS based plants.

 INTERPRETATION AND ANALYSIS

Consumer Perception
 LAND HOLDING (In Acres):

 0 to 10  38
 10 to 20  7
 20 to 40  4
 Above 40  1

20 to 40 Above 40
8% 2%

10 to 20
14%

0 to 10
76%

0 to 10 10 to 20 20 to 40 Above 40


 INTERPRETATION: According to 50 respondents 76% of them say that they are

holding 0 to10 acres of land, 14% of them say that they are holding 10 to 20 acres of

land, 8% of them say that they are holding 20 to 40 acres of land and rest 2% of them say

that they are holding above 40 acres of land.

 2. Which brand of urea do you prefer?

 IFFCO  21

 KISAN UREA  29

 KRIBHCO  19

 TATA  23

 INTERPRETATION: According to 50 respondents 21 of them prefer IFFCO Urea, 29

of them prefer KISAN Urea, 19 of them prefer KRIBHCO Urea, and 23 of them prefer

TATA Urea.

 3. Why do you prefer this particular brand of urea?

 Easy Availability  39

 Price  27

 Quality  36

 Good Packing  42

 INTERPRETATION: According to 50 respondents 39 of them say that there brand of

urea is easily available, 27 of them say that there brand urea had affordable price, 36 of

them say that there brand urea had good quality, and 42 of them say that there brand urea
had good packing.
 4. From where do you buy fertilizers?

 Dealers  36

 Society  43

 INTERPRETATION: According to 50 respondents 36 of them say that they buy

fertilizers from dealers and 43 of them say that they buy fertilizers from society.
 5. How do you come to know about urea?

 Newspaper  11

 Dealers  18

 Kisan Mela  19

 Friends  27

 INTERPRETATION: According to 50 respondents 11 of them say that they come to

know about urea from newspaper, 18 of them say that they come to know about urea

from dealers, 19 of them say that they come to know about urea from Kisan Mela, and 27

of them say that they come to know about urea from friends.

What type of packing you prefer?

 Jute Bag  11

 Poly Bag  39
 Jute Bag
22%

Poly Bag
78%

Jute Bag Poly Bag



 INTERPRETATION: According to 50 respondents 22% of them say that they prefer

jute bags for packing, and rest 78% of them say that they prefer poly bags for packing.
 7. What is your opinion about Kisan urea?

Good 25

Bad 2

Satisfactory 23

Satisfactory
Good
46%
50%

Bad
4%

Good Bad Satisfactory

INTERPRETATION: According to 50 respondents 50% of them say that Kisan urea is

good, 4% of them say that Kisan urea is bad and rest 46% of them say that Kisan urea is

satisfactory.
Quality Control
1. Do you have a written Quality Policy that is defined, documented and communicated
throughout the organization?

Yes 41

No 9

No
18%

Yes
82%

Yes No

Interpretation- Out of 50 respondents 82% says that yes Quality Policy should defined,
documented and communicated throughout the organization and 18% says that no Quality Policy
should not defined, documented and communicated throughout the organization.
2. Is quality system based on ISO 9000?

Yes 48

No 2

No
4%

Yes
96%

Yes No

Interpretation- Out of 50 respondents 96% says that yes system should based on ISO 9000 and
rest 4% says that no system should not based on ISO 9000
3. Are management reviews periodically performed to ensure effectiveness of the quality
system?

Yes 37

No 13

No
26%

Yes
74%

Yes No

Interpretation- Out of 50 respondents 74% says that yes management should reviews
periodically performed to ensure effectiveness of the quality system and rest 26% says that no
management should not reviews periodically performed to ensure effectiveness of the quality
system.
4. Do you prepare Quality Plans for new product development?

Yes 43

No 7

No
14%

Yes
86%

Yes No

Interpretation- Out of 50 respondents 86% says that yes Company should prepare Quality Plans
for new product development and 14% says that no Company should not prepare Quality Plans
for new product development.
5. Do you perform customer purchase order/contract reviews?

Yes 29

No 21

No
42%

Yes
58%

Yes No

Interpretation- Out of 50 respondents 58% says that yes Company should perform customer
purchase order/contract reviews and rest 42% says that Company should not perform customer
purchase order/contract reviews.
6. Do you control and verify design of your product to assure specified requirements are
met?

Yes 44

No 6

No
12%

Yes
88%

Yes No

Interpretation- Out of 50 respondents 88% says that yes Company should control and verify
design of your product to assure specified requirements are met and rest 12% says that no
Company should not control and verify design of your product to assure specified requirements
are met.
7. Do you have a document control management system?

Yes 33

No 17

No
34%

Yes
66%

Yes No

Interpretation- Out of 50 respondents 66% says that yes Company do have a document control
management system and rest 34% says that no Company don’t have a document control
management system. .
8. What methods do you use for supplier surveillance?

On-Site Surveys 9

Audits 11

History Performance 14

None 6

Third Party Audit 10

Third Party On-Site

Audit Surveys
20% 18%

None
12% Audits
22%
History
Performance
28%
On-Site Surveys Audits
History Performance None
Third Party Audit

Interpretation- Out of 50 respondents 18% says that they use on site surveys for supplier
surveillance, 22% says that the use audits for supplier surveillance, 28% says that they use
history performance for supplier surveillance, and rest 12% says that they prefer third party audit
for supplier surveillance.
9. Do you verify that incoming product is acceptable?

Yes 47

No 3

No
6%

Yes
94%

Yes No

Interpretation- Out of 50 respondents 94% says that yes they do verify that incoming product is
acceptable and rest 6% says that they don’t prefer verify that incoming product is acceptable
10. Do you record accept/reject quantities from your suppliers upon receipt?

Yes 27

No 23

No
46%

Yes
54%

Yes No

Interpretation- Out of 50 respondents 54% says that yes they do record accept/reject quantities
from your suppliers upon receipt and rest 46% says that no they don’t record accept/reject
quantities from your suppliers upon receipt.
11. Is product identified as to its inspection/test status throughout all stages of production?

Yes 32

No 18

No
36%

Yes
64%

Yes No

Interpretation- Out of 50 respondents 64% says that yes they identified as to its inspection/test
status throughout all stages of production and rest 36% says that they do not identified as to its
inspection/test status throughout all stages of production
12. Do you have a "Root Cause" Corrective Action System?

Yes 11

No 39

Yes
22%

No
78%

Yes No

Interpretation- Out of 50 respondents 22% says that yes Company have a "Root Cause"
Corrective Action System, and 78% says that no Company do not have a "Root Cause"
Corrective Action System
13. Do you have a documented system to initiate, investigate and provide solutions for
customer complaints?

Yes 37

No 13

No
26%

Yes
74%

Yes No

Interpretation- Out of 50 respondents 74% says that yes Company do have a documented
system to initiate, investigate and provide solutions for customer complaints and rest 26% says
that no Company don’t have a documented system to initiate, investigate and provide solutions
for customer complaints.
CONCLUSIONS

Consumer Perception

1 According to respondents maximum of them are holding 0 to10 acres of land.

2 Most of the respondents prefer KISAN Urea

3 Mostly say that there brand urea had good packing.

4 Maximum of them buy fertilizers from society.

5 Maximum of them say that they come to know about urea from friends.

6 Mostly say that they prefer poly bags for packing.

7 Maximum of them say that Kisan urea is good..

Quality and Control

1 There is documented and communicated throughout the organization.

2 The Quality Management System should have to be ISO 9000 based.

3 Management should reviews periodically performed to ensure effectiveness of the quality

system

4 Company should prepare Quality Plans for new product development.

5 Company should perform customer purchase order/contract reviews

6 Company should control and verify design of your product to assure specified
requirements are met.

7 Company should have a document control management system.

8 Management should have better tools for the supplier surveillance so that the product
quality remain same and also there should be proper verification of the incoming and
outgoing product.

9 “Root Cause” corrective action system should have be there and also documented system
to initiate, investigate and provide solutions for customer complaints.
SUGGESTIONS AND RECOMMENDATIONS

10 Company has to figure out its best for their customers regarding their products.

11 Quality Policy should defined, documented and communicated throughout the National
Fertilizers.

12 The Quality Management System should have to be ISO 9000 based.

13 National Fertilizers management should reviews periodically performed to ensure

effectiveness of the quality system

14 National Fertilizers should prepare Quality Plans for new product development.

15 National Fertilizers should perform customer purchase order/contract reviews

16 National Fertilizers should control and verify design of your product to assure specified
requirements are met.

17 National Fertilizers should have a document control management system.

18 National Fertilizers management should have better tools for the supplier surveillance so
that the product quality remain same and also there should be proper verification of the
incoming and outgoing product.

19 “Root Cause” corrective action system should have be there and also documented system
to initiate, investigate and provide solutions for customer complaints.
ANNEXURE:

QUESTIONNAIRE

Consumer Perception
1. NAME OF THE RESPONDENT: karamjit singh

2. AGE: 42

3. VILLAGE ADDRESS: MORNI distt. BHADURGARH

4. LAND HOLDING (In Acres):

0 – 10

10 - 20

20 – 40

Above 40

5. Which brand of urea do you prefer?

IFFCO

KISAN UREA

KRIBHCO

TATA

6. Why do you prefer this particular brand of urea?

Easy Availability

Price
 Quality

Good Packing

7. From where do you buy fertilizers?

Dealers

Society

8. How do you come to know about urea?

Newspaper

Dealers

Kisan Mela

Friends

9. What type of packing you prefer?

Jute Bag

Poly Bag

10. What is your opinion about Kisan urea?

Good

Bad

Satisfactory
Quality and Control
1. Do you have a written Quality Policy that is defined, documented and communicated
throughout the organization?

Yes No

2. Is quality system based on ISO 9000?

Yes No

3. Are management reviews periodically performed to ensure effectiveness of the quality

system?

Yes No

4. Do you prepare Quality Plans for new product development?

Yes No

5. Do you perform customer purchase order/contract reviews?

Yes No

6. Do you control and verify design of your product to assure specified requirements are met?

Yes No

7. Do you have a document control management system?

Yes No

8. What methods do you use for supplier surveillance?

 On-site surveys Audits History Performance

Use of SPC None Third-party audit

9. Do you verify that incoming product is acceptable?

Yes No

10. Do you record accept/reject quantities from your suppliers upon receipt?

Yes No

11. Is product identified as to its inspection/test status throughout all stages of production?

Yes No

12. Do you have a "Root Cause" Corrective Action System?

Yes No

13. Do you have a documented system to initiate, investigate and provide solutions for customer
complaints?

Yes No
BIBLIOGRAPHY

BOOKS

1 Anderson, E.W., Fornell, C., & Lehmann, D.R. (1994). Customer satisfaction, market
share and profitability: Findings from Sweden. Journal of marketing, 58(3), 53-56.

2 Knutson, B., Stevens, P., & Patton, M. (1995). DINESERV ：Measuring service quality in
quick service, casual/theme, and fine dining restaurants. Journal of Hospitality &
Leisure Marketing. Vol (3/2), 35-44.

3 McCleary, K.W., & Weaver, P.A. (1982). Improving employee service levels through
identifying sources of customer satisfaction. Intentational Journal of Hospitality
management, 1(2), 85-89.

4 Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988, Spring). SERVQUAL ： a

multiple-item scale for measuring consumer perceptions of service quality. Journal of
Retailing , 64(1), 12-40.

5 Wu, C. K., Goh, B.Y., Lin, K., & Chen P. (1999) Measuring service quality in restaurant
operations: an application of the dineserv instrument. Proceedings of the conference on
Graduate Education and Graduate Students Research, 626-634. (January 4-6,1999)

INTERNET REFERENCES
1 http://business.mapsofindia.com/india-company/n/national-fertilizer.html
2 http://en.wikipedia.org/wiki/Quality_management
3 http://www.managementhelp.org/quality/quality.htm
4 http://www.allbusiness.com/management/benchmarking-quality-improvement/382867-
7.html
5 http://www.lotsofessays.com/viewpaper/1688840.html