Total Quality Management

“DEDICATION”

BY THE GRACE OF ALMIGHTY ALLAH THE WHOLE

CONTRIBUTION AND RESEARCH IS DEDICATED TO OUR
PARENTS AND FOR THE SAKE OF KNOWLEDGE
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PREFACE

RATIONALE:

The rationale behind this whole report is to study and analyze management practices and
apply principles of quality management over that practice to assess its viability in its
existing situation and to devise certain recommendations to make that practice more
successful and useful.

SCOPE:

This report comprises of a research-based study that comprises of direct observation, a

questionnaire based detailed discussion and scrutiny of published data over web.
Relevant conclusions and recommendations are drawn from all these three activities.

LIMITATION:

The major limitation of this report that it is based on the direct observation method which
varies from person to person, although cross checking have been made with the detailed
discussion and published data, however the human error limitation lies at its place.

ASSUMPTIONS:

There are no assumptions in this study; relevant conclusions are drawn from the research
and proper analysis.

ACKNOWLEDGEMENTS

The purpose of the project is to highlight various techniques of TQM used by the firms to
maintain and control quality at various levels of management and this project was a good
opportunity to learn and practically observe the various methodologies regarding the
maintenance and provision of TQM.

First of all we would like to thank Allah Almighty for enabling us to complete the project
successfully. We would also like to thank our instructor Mr. Qammar for providing us the
guideline and opportunity to get acquainted with the subject. Lastly we would like to
thank our parents and friends who helped us in making the project.

OGDCL- HISTORY
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OGDCL – THE LEADING E&P PLAYER IN PAKISTAN

OGDCL is the national oil & gas company of Pakistan and the flagship of the country’s
E&P sector. The Company is the local market leader in terms of reserves, production and
acreage, and is listed on all three stock exchanges in Pakistan and also on the London
Stock Exchange since December 2006. The Company is all set to ride the wave of E&P
activity, equipped with its Vision & Mission, Business and Strategic Plan, a debt-free and
robust balance sheet and healthy cash reserves. The Company is ready to take on the
challenges of a volatile E&P industry.

CONVERSION INTO PUBLIC LIMITED COMPANY

Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as
OGDC (Oil & Gas Development Corporation). It has been incorporated as a Public
Limited Company w.e.f. 23 October 1997 and is now known as OGDCL (Oil & Gas
Development Company Ltd.).

INITIAL PUBLIC OFFERING

Government of Pakistan disinvested part of its shareholding in the company in 2003.
Initially 2.5% of the equity with an additional green-shoe option up to 2.5% of equity was
offered to the general public. The said Offer received an overwhelming response from the
general public and was recorded as a landmark transaction in the history of Pakistan’s
capital markets

GDR

In December 2006, the Government of Pakistan divested a further 10% of its holding in
the company. The Company is now listed on the London Stock Exchange since on
December 06, 2006.

ORGANIZATIONAL HIERARCHY
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A Board of Directors comprising twelve Directors, all of whom are nominated by the
Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The
autonomous Board is headed by a non-executive Chairman and there is a Managing
Director/Chief Executive Officer. OGDCL has a wholly owned subsidiary Pirkoh Gas
Company Limited (PGCL) which is responsible for operating Pirkoh gas field.

CORE VALUES AND GOALS LEADING TO QUALITY

The core values that are an integral part of the firm are listed below. The management at
OGDCL practices these core values in order to maintain quality.

CORE VALUES ARE:

 Merit
 Integrity
 Team Work
 Safety
 Dedication
 Innovation

The goals that the firm is striving to achieve are listed below. the management believes
that if these goals are being accomplished then automatically quality will be
maintained and observed.

FINANCIAL

 To reduce cost and time over runs to improve financial results

 To maximize profits by investing surplus funds in profitable avenues
 To make investment decisions by ranking projects on the basis of best economic
indicators
 Growth and superior return to all stakeholders
 Double the value of the company in next five years.

CUSTOMERS

 Improve the quality of service to make it faster and more transparent

 Quality, dependability, responsible corporate citizen
 Reliable and efficient company
 To provide most reliable supplies to the customers through cost effective means
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LEARNING & GROWTH

 To set up task forces with representation from all relevant departments to improve
 internal business decision making and strategic planning
 Excel in exploration, development and commercialization
 Availability of updated information to the shareholders and customers
 To use most effective business practices and formulate a framework of synergic
organization with the change in culture.

TECHNOLOGY

Conditioning, treating and processing of raw natural gas/oil to obtain marketable products
i.e. fuel gas, stabilized oil, motor spirit, kerosene, diesel, LPG & sulphur through
processing plants via optimum safe & environment friendly process plants operation and
maintenance Well fluids are often a complex mixture of liquid hydrocarbons, gas and
some impurities. It is necessary to remove liquid hydrocarbons & objectionable
impurities from natural gas before the gas is supplied to the buyer. The
separation/purification of natural gas, liquid hydrocarbons and removal of impurities is
accomplished by various processes depending upon the composition of the well stream
and the desired specifications of the end products. Following are some methods:

 GAS DEHYDRATION:
Water is a common impurity in natural gas that must be removed to meet pipeline
specifications and prevent hydrate formation.

 GAS SWEETENING:
It is the process which removes contaminates like, Hydrogen sulfide, carbon
dioxide, mercaptans and H2S which are found in natural gas streams. so the gas is
suitable for transportation and use.

 DEW POINT CONTROL

All air contains water vapor of varying quantities. The dew point indicates the
amount of moisture in the air. Different machineries control that.

 LIQUID RECOVERY:
A process for removing natural gas liquids from liquid natural gas (LNG) stream
specifically recovering at least 90% of ethane from the LNG, utilizing the low-
level heat available in an LNG terminal.
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 CHROMATOGRAPHY:
Is the collective term for a family of laboratory techniques for the separation of
mixtures. It involves passing a mixture dissolved in a "mobile phase" through a
stationary phase, which separates the analyte to be measured from other molecules in
the mixture and allows it to be isolated.

HUMAN RESOURCE

The department has a team of technically sound, highly experienced and dedicated
professionals consisting of Engineers, Chemist and Technicians. Most of the
Professionals have more than 15-20 years of working experience in their professions and
have undergone training in Pakistan in OGDCL and with the Multinational Companies at
USA and Canada. HR consists of:

 Data Acquisition Engineers

 Field Geophysicists.
 Vibrator Technicians and Vibrator Operators.
 Drilling Technicians and Drillers.
 Workshop Technicians and Mechanics.
 Surveyors.
 Communication Officers/Radio Operators.
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KFC PAKISTAN - HISTORY

KFC is basically a symbol of Triple - F i.e. Food, Fun
and Festivity. At KFC the management simply says,
“We do the chicken right”.

KFC Pakistan opened its first outlet in Gulshan-e-

Iqbal, Karachi in 1996 and presently KFC is branched
out in 9 major cities of Pakistan (Karachi, Lahore,
Rawalpindi, Faisalabad, Multan, Peshawar, Sialkot, Hyderabad, Islamabad, Jhelum and
Gujranwala) with 43 outlets nation-wide.

FACTS & FIGURES:

Apart from fulfilling the commitment of serving delicious, fresh and hygienic food and at
the same time providing the customers with the ultimate entertainment, KFC also plays a
vital part in the economic development of Pakistan.

• Presently KFC has employed over 1,200 Pakistanis, which adds up to 6,000
individuals directly dependent on KFC Pakistan.
• The Government of Pakistan receives over Rs.10 Million per month from KFC
Pakistan as direct taxes.
• KFC Pakistan procures 95% of all food and packaging material used locally,
which come to purchase of over Rs. 35 Million per month.
• Every new outlet developed by KFC Pakistan costs approximately Rs. 40 Million,
which contributes a huge amount for construction industry.

KFC PAKISTAN MANAGEMENT:

KFC Pakistan is operated by Cupola which is Dubai based multinational company

involved in several businesses including oil gas exploration, plastic cards, retail markets
and food franchising. Cupola basically creates value through change, challenging existing
paradigms and by applying vision, innovation and skilled execution.

The company has always accentuated corporate social responsibility through various
initiatives taken under the banner of its flagship brand KFC. These includes setting up of
libraries in various schools, provision of training for teachers, to provide educational
support for under privileged children, to pay jail visits, to care for environment and to
cater for the needs of children at SOS village.
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5W’S – 2H OF UNIQUE MANAGEMENT PRACTICE

The 5 W’s and 2 H, basically provides an over view of any thing. These Five W’s seeks
answers to the five basic questions starting from W, like What, When, Where, Who and
Why, whereas the 2 H seeks answers to the two questions starting from H, like How and
How much. Below are given answers to these questions, which will further clear the
Unique Management concept being practiced by KFC Pakistan.

WHAT & HOW:

The whole unique idea revolves round the concept of Corporate Social Responsibility.
The management of KFC Pakistan has initiated the unique concept of Corporate Social
responsibility by employing Hearing and Speech impaired persons as Customer Service
Representatives at their various outlets. They have recruited special persons from various
special deaf institutions, selected them on basis of various screening tests and interviews.
Then the next step was the provision of rigorous six-months training to these selected
candidates, to enable them to perform the job in a better manner. The trainees were taught
how to cook with precision and to work within the time parameters. The management has
also placed a mix of normal persons with these special persons in order to avoid any
hassle and problem. The restaurant is especially designed so that they may easily operate
it. For instance, there are light bulbs as indicators in the kitchen instead of bells and very
illustrative menu cards so that the customers may point out what they want. The work
environment is congenial and well equipped for them to work in. there are 30 hearing
impaired employees with 2 managers who are not hearing impaired.

WHEN & WHERE:

The idea was initiated some time back at Karachi and KFC’s Gulshan outlet was fully
dedicated to the idea. About 4-5 months back the same idea was implemented at Satellite
Town, Rawalpindi outlet. One similar outlet is also working at Lahore.

WHO:

At Satellite Town, Rawalpindi outlet, Mr. Wasim Jan, who is the Branch Manager there,
implements the idea.

WHY:
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There are two basic reasons to why KFC Pakistan has initiated this whole idea. The first
one is the CSR history of KFC internationally. KFC is an organization that keeps on
practicing the CSR concept in new facets whenever it gets a chance.

The other reason as explained by KFC Pakistan team is that the deaf People in Pakistan
have been forced by the society to live in their own cocoon where they cannot mingle and
work with normal people. Even if they are educated enough, the deaf don’t get jobs easily
and earning a living for themselves in unthinkable. KFC is the first to take initiative to
help them and given an equal opportunity to prove themselves.

HOW MUCH:

The extent and success of the idea increase the induction of these special people at KFC
Pakistan. They have expanded from one such outlet to three all over Pakistan. The
management might expand the induction of such persons in specialized working areas as
well giving them a chance to prove them selves and be a contributing member of the
society.

TECHNOLOGY

The implementation of the whole idea has to be structured in such a way that the overall
quality of KFC products at least remains constant with gradual improvement.

1. SPECIAL MACHINES FOR COOKING

The management has provided special machines for cooking in the kitchens to these
outlets. In ordinary machines, beep rings, when the meal is ready, however, since the
operators are hearing impaired, they have provided special machines at these outlets,
in which a bulb indicates the same instruction.

2. SPECIAL MENUS

The management has provided special illustrated menu cards for these outlets. This
helps to minimize the clarification required by the new customers.

3. WRITTEN INSTRUCTIONS

There is more emphasis on written instructions at these outlets, and in the kitchen side
there are many papers pasted on the walls, to educate the operators about various
procedures. Similarly, on POS terminals, for receiving payments through credit cards,
the instructions are pasted.

4. SPECIAL SIGNS
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They have created special signs for people information. Like there is a special
signboard to indicate cleaning in progress, however, there is no such thing in ordinary
outlets.

CONCLUSION

Both the firms have been observed implementing TQM according to their own needs and
resources. Following conclusions have been drawn based on our own observation and
analysis:

 KFC
This unique corporate social responsibility technique being practiced by KFC Pakistan, is
one of the best as it helps to encourages and establish a new zeal in these special persons,
who are being ignored and will help to enhance the level of confidence in these persons,
to undertake more challenging tasks.

 OGDCL

OGDCL is striving hard to achieve its goals and objectives through best possible ways
and it is using the state of the art technology and resources that are available to it,
moreover the HR at the upper level are showing commitment and dedication to the firm.

We highly appreciate the efforts in providing the nation with pure consumption fuel and
gases.

RECOMMENDATIONS

Following recommendations are given to both the managers of the respective firms:

 KFC

The only recommendation identified is that these Special persons should be provided
working opportunities in other special functions like HR, Finance, and Marketing etc. At
present they are only limited to perform as Customer Service Representatives.

 OGDCL

The only recommendation identified is that first line employees who are operating the
machinery should be trained in such a way that they should be able to maintain the
equipment provided to them, since the employees are exploiting the machinery.
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REFERENCES

Θ http://www.kfcpakistan.com
Θ http://www.kfc.com
Θ Discussion with Mr.Wasim Jan, at KFC – Pakistan Satellite
Town, Rawalpindi outlet.
Θ http://www.ogdcl.com
Θ Discussion with Mr.Imran Shaukat, at OGDCL-Blue Area
Islamabad.

THE END