Mba Last Edited 1.1

A STUDY ON EVALUATING THE OVERALL EFFICIENCY OF TQM AND ITS
IMPLEMENTATION AT MILMA DAIRY PLANT TRIVANDRUM
CHAPTER -1
INTRODUCTION
Total Quality Management is a system of management based on the principle that every
member of staff must be committed to maintaining high standards of work in every aspect of
a company's operations. Total quality management (TQM) consists of organization-wide
efforts to "install and make permanent climate where employees continuously improve their
ability to provide on demand products and services that customers will find of particular
value.. Total quality emphasizes that departments in addition to production (for example sales
and marketing, accounting and finance, engineering and design) are obligated to improve
their operations; "management" emphasizes that executives are obligated to actively manage
quality through funding, training, staffing, and goal setting. While there is no widely agreed-
upon approach, TQM efforts typically draw heavily on the previously developed tools and
techniques of quality control. TQM enjoyed widespread attention during the late 1980s and
early 1990s before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma.
Total Quality Management is an extensive and structured organization management approach

that focuses on continuous quality improvement of products and services by using continuous
feedback.
Total Quality Management is an organizational philosophy, based on the principle that

consistent delivery of customer expectations, can only be achieved if each and every
contributor into the customer expectation performs as required, in order to meet the needs of
the customer.
Total Quality Management is an approach to improvement which seeks to harness the

capabilities of all resources, across all aspects of business operations, towards achieving
common goals. TQM is not about significant investment, nor rolling-out new IT systems, nor
the installation of the most modern items of process equipment. It is about maximising the
capabilities that currently exist within the organization and creating processes and
mechanisms which allow for significant improvement in performance based on leveraging
the existing capabilities.
TQM is a whole new way of doing business and takes long term commitment at all levels in
the organization for it to work. TQM is not a ‘quick fix’. Competence development of
employees, the rollout of effective management communication processes, a culture of right
1 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

first time, all take a long term commitment. However, while TQM is a long term process,
benefits will be achieved from the 5commencement of the TQM journey. One good fact
based failure analysis and corrective action, is infinitely better than numerous quick fixes.
Milma Dairy Plant Trivandrum was chosen for conducting this particular study. Through this
study an effort has been made to understand their prevailing TQM system and also analysing
its effectiveness. The management is very concerned about the regular evaluation of the total
quality management system. They are following the Total quality management techniques
such as quality control and continuous improvement .The major purpose of using the total
quality techniques within an organization is to align the employee’s efforts with the overall
objective of the firm. Effective evaluation of the total quality management system will help to
improve the reliability of the customers towards the organization.
TQM is a formal system of review and evaluation of Quality control and continuous
improvement. While evaluation of Continuous improvement is critical when quality
management s exist in an organization, the focus of Tqm in most firms remains on the
Management perception. Regardless of the emphasis, an effective Tqm evaluates
accomplishments and initiates plans for development, goals and objectives.
1.1 STATEMENT OF THE PROBLEM
A study on the Total Quality management system at Milma Dairy Plant is undertaken. It is
undertaken to help in activities such as Continuous improvement, Quality control Quality
parameters and techniques etc. It also serves as a feedback to the employees, providing
improvement of quality in Production, Operation function etc. Total Quality Management are
necessary for the enhancement of the implementation of Total quality management in the
organization. The main problem with the TQM is done frequently to improve their efficiency.
So the continuous improvement does not takes place in the organisation. It helps in finding
the gaps in the existing Total quality management system. It also includes the study about
whether the organization is full filled with the current Total Quality management system.
1.2 SCOPE OF STUDY:
The study mainly attempts to analyse the effectiveness of Total quality management system
in the company selected for the study. The Operation management can use this for evaluating
their performance in future, which will help to analyse Total quality management system and
the factors affecting on it and help to apply the resources of the company properly for the

development of the company and to bring overall efficiency of Total quality management
system of the Organization. The present study attempt to develop a measures for evaluating
and implementing quality tools. There can be forecasting to evaluate the overall performance
of the Total quality management system at Milma Dairy Plant in future.
1.3 OBJECTIVES OF THE STUDY
1. To evaluate the overall efficiency of Total Quality Management and its

implementations at Milma Dairy Plant.
2. To find certain Suggestion for the improvement of Total Quality Management system
at Milma Dairy Plant.
3. To determine the various tools and techniques of Total quality management in the
organization.
4. To find out the degree of Total Quality Management in the organization
5. To analyse the factors influencing Total Quality Management.
1.4 RESEARCH METHODOLOGY
Research is a systematized effort to gain knowledge. The research methodology adopted

for the study is described in this chapter. The methodology includes objectives, sampling,
data collection and data analysis. The research design adopted for the study is descriptive
research. Research is undertaken with an idea to know about the effectiveness of Total
quality management system at Milma Dairy Plant.
Business research is a systematic enquiry that provides information to guide business

decisions and aimed to solve managerial problems. Business research is of recent origin
and is largely supported by business organization that hope to achieve competitive
advantage.
Research Methodology is a way to systematically solve the research problems. It may be

understood as a science of studying how research is done scientifically. It includes overall
research design, sampling procedure, data collection method and analysis procedure.
Quantitative research method
Quantitative research method emphasizes quantification in the collection and analysis of

the information. The aim is to gather numerical evidence where conclusions can be drawn
from or they can be used to test hypotheses. In order to get reliable results it is necessary

to study relatively large sample group and use a computer to analyse the collected
information. The information is derived from questionnaire surveys, secondary sources
and from observation involving counts.
Qualitative research method
Qualitative research method on the contrary does not involve numerical data but
emphasizes words rather than numbers. This method uses only a small sample group; the
primary information is gathered from a small number of people. The information gathered
cannot usually be presented in numerical form. This research method is used when a full
understanding of the sample group is required. The information is derived from
observation, informal and in-depth interviewing and participant observation.
1.4.1 Research Design
The research design stands for advance planning of the method to be adopted for
collection the relevant data and the technique to be used in analysis, keeping the view the
objective of the research and availability time .In general, research design is the
conceptual structure within the research is conducted. It constitutes the blue print for
collection, measurement and analysis of data.
Descriptive Research
Descriptive research study includes surveys and facts finding enquires of different kinds,
which help the researchers to describe the present situation that makes the analysis about
the effectiveness of employee satisfaction among the employees and help to reach the
objective.
1.4.2 Sampling Design /Technique
Sampling design is to clearly define set of objectives, technically called the universe be
studied. This research has finite set of universe and the sampling design used in the study
is the probability sampling. Sampling technique used is simple random sampling.
Population – 10
Confidence Level – 5%
Sample size – 50
Sampling method – simple random sampling.

Sampling unit - Executive, administration, Production supervisors, and coordinators of
Milma Dairy Plant.
1.4.3 Period of study
Two months
1.4.4 Sample Unit /Sample Size
The item selected from the population constitutes the sample size .The study covers the
employees of all level people in the organization. Total sample size for the study is 50.
Data Collection method
Sources of data:
Primary Data
Primary data are collected from the workers and supervisors of the company by personal
interview method. Questionnaires are prepared to collect the data through Observations
and discussion with management and employees.
Secondary Data
Secondary data was gathered from record and files of the unit and the information
collected from the text books, journals, reports and websites etc.
1.4.5 Data Analysis Tool
The collected data analysed using the method of simple percentage, Chi-Square test .The
analysed data is presented using Charts and tables.
Percentage Analysis
The data tool is percentage method .Percentage method is used in making comparison
between data. This method is used to describe the relationship.
Number of observations
Percentage = ∗ 100
Total no.of observations

Chi-square
Chi square is a non-parametric test. It is non parametric because this test is not concerned
with any population distributions and its observations. It enables us to find out the degree
of discrepancy between observed and theoretical frequencies and hence to find whether it
is due to error of sampling or due to chance. Value of chi square is always positive as
each pair is a squared one. Chi square value lies between zeros to infinity. Hence
significance test is one tailed on the right hand side of the standard normal curve.
The formula for calculating chi-square is;
(𝑂 − 𝐸)2
𝜒 2 = ∑[ ]
𝐸
Where,
Oij= Observed frequency of the cell in ith row and j th column
Eij =Expected frequency of the cell in I th and j th column
1.4.6 HYPOTHESIS
Hypothesis
Hℴ : There is no relation between overall efficiency of the organization and
Total Quality Management.
H1: There is relation between overall efficiency of organization and Total Quality
Management.
1.5 LIMITATIONS OF THE STUDY
Any study cannot be 100% accurate at all time. This is because of the inherent limitation
that could be present in such a study.
 The project is restricted to the responses of those interviewed during the period of
data collection.
 Fear of employees could hence retain the respondent from answering the question
honestly
 Errors can arise due to personal bias of the respondents.

1.6 CHAPTERISATION
 Chapter 1: Introduction
 Chapter 2: Industry Profile and Company Profile
 Chapter 3: Literature Review.
 Chapter 4: Data Analysis and Interpretation.
 Chapter 5: Conclusion.

Chapter – 2
2.1 INDUSTRY PROFILE
INTERNATIONAL SCENARIO
The international dairy federation, with its headquarters Brussels, was established in 1903
and consists of 32 member countries throughout the world. UNICEF has been the motivating
force for establishing a dairy industry in many under developed countries. One of these is in
India, where large modern processing plants have been set up to process locally produced
milk or to reconstitute milk from donated or purchased milk fat and powder. Domestic milk
.production has increased in India and a part of the pasteurized milk is provided free to
children in the larger cities through UNICEF. The first co-operative artificial breeding
association was organized in Denmark in 1936. There are now many such associations which
helped the diary industries. After 1950s dairy industries faced a wide range of development
throughout the world.
NATIONAL SCENARIO
Traditionally, all the milk in the past had been produced in the villages in India. Even today
the bulk of the country’s milk supply comes from the cattle owners in the rural areas. In the
old days, the farmers produced milk usually for their own consumption. Most of the milk was
converted by them into butter, ghee and butter milk, which constituted important food items
for the family. As marketing facilities for milk did not exist in those days, the surplus milk
was generally turned into ghee 4 for sale in the villages or in the near-by town markets. Later
on, this pattern changed and most of the surplus milk was either sold by the cattle-owners to
the consumers, in the nearby areas or collected by the middlemen for sale in the urban
markets.
Modernization of the dairy industry in India gained momentum with the commencement of
India’s first five Year plan in 1951. With the aim of catering to the requirement of clean milk
for the growing population in urban areas, the initial government action in this regard
consisted of organizing milk schemes for the large cities. The basic objectives of these
schemes was to facilitate arrangement for the efficient flow of milk produced in the rural
areas to the dairy plants located in cities and distribution of the processed milk to the urban
consumers. The working of the milk schemes was quite helpful for the development of the
dairy industry on modern lines in India.

Co-operativization
The establishment of milk co-operatives is another feature of the modern dairy industry in
India. For successful functioning of economic enterprises in our villages, it is necessary that
they are given a corporate identity. In most developed countries, co-operative have emerged
as the most cohesive organization of farmers. They provide the middle course between the
acquisitive and individualistic trends of economy on one hand and too much centralization
and regimentation on the other. They have the merit of combining freedom and opportunity
for the small man with benefits of large scale management and organization as also good-
will and support from the community. In India, though the co-operative movement was
initiated by the co-operative credit societies Act, 1904, dairy cooperative could not be
promoted till the passing of the co-operative societies Act, 1912. Though, with the
establishment of the first cooperative dairy society at Allahabad (U.P.) in 1913, the
movement of dairy cooperative got initiation and spread subsequently in different parts of our
country. Its 5 real large sale and systematic break through could be noticed since 1946 when
Kaira District Co-operative Milk producers’ Union Limited (KDCMPUL) popularly known
as ‘Amul Dairy’ which was set up at Anand in the Gujarat state. The genesis of co-operative
movement can be traced back to the first half of the 18th century. Industrial revolution in
U.K. had augmented the production at the cost of ethics and values of mankind as man was
replaced by machine. Because of lust and lure for the production, it had directly resulted in
the exploitation of the mankind and so co-operative movement took birth in U.K. for
improving the condition of labourers. From England, co-operative movement spread out all
over the world and had been changed in to the great movement.
Indian dairy sector has come a long way from price independence era of acute milk shortage
and dependent on foreign aid in the form of milk powder to meet the growing milk demand.
As a result of this a dairy co-operative society was registered in 1913 for meeting this
problem. Later Kaira District milk supply union was formed at Anand. It was an important
land mark in the history of the co-operative dairy sector. Inspired by the achievements of this
institution, the Government of India constituted a National Dairy Development Board in
1965.
ANAND PATTERN
ANAND is a small village of farmers in

Kaira District of Gujarat. ANAND Milk Union Limited is a Co-operative Society formed by
the farmers of Anand Village for the purpose of distribution of milk. Now the world famous
Anand Milk Union Limited is popularly known as Amul.
The Anand Milk Union Limited has a three tier structure.
1. Village level Primary Co-operative Society called APCOS.
2. District Milk Producers Union.
3. State Level Milk Marketing Federation.
NATIONAL DAIRY DEVELOPMENT BOARD
National Dairy Development Board was developed by the Government for the purpose of
organizing, planning and executing the dairy development programs in the country. This
board, with the help of government, got assistance valuing Rs. 120crores under flood
programs. Under this scheme financial assistance was provided to various state governments
and other agencies for implementing development scheme. The National Dairy Development
Board's creation is rooted in the conviction that our nation's socio-economic progress lies
largely on the development of rural India. The National Dairy Development Board (NDDB)
was founded in 1955 to replace exploitation with empowerment, tradition with modernity,
stagnation with growth, transforming dairying into an instrument for the development of
India's rural people. The National Dairy Development Board was created to promote, finance
and support producer-owned and controlled organizations. NDDB's programmes and
activities seek to strengthen farmer cooperatives and support national policies that are
favourable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative
principles and cooperative strategies. 29 NDDB began its operations with the mission of
making dairying a vehicle to a better future for millions of grassroots milk producers. The
mission achieved thrust and direction with the launching of "Operation flood,” a program
extending over 26 years and which used World Bank loan to finance India's emergence as the
world's largest milk producing nation. Operation flood's third phase was completed in 1996
and has to its credit a number of significant achievements. As on March 2009, India’s 1, 333,
49 village dairy cooperatives federated into 177 milk unions and 15 federations procured on
an average 25.1 million litres of milk every day. 13.9 million Farmers are presently members
of village dairy cooperatives. Since its inception, the Dairy Board has planned and
spearheaded India's dairy program by placing dairy development in the hands of milk

producers and the professionals they employ to manage their cooperatives. In addition,
NDDB also promotes other commodity-based cooperatives, allied industries and veterinary
biological on an intensive and nation-wide basis.
GOVERNMENT OF KERALA
The phenomenal success of the Dairy Co-operatives in Kerala could not have been without
the foundation of
· Animal husbandry activities
· Dairy Development Department
· Kerala Livestock Development Board
CERTIFICATION RECEIVED
All the dairy milk chilling plants and procurement and input unit under the union are certified
for ISO 9001-2000
OPERATION FLOOD
Operation Flood is an important move in the history of dairy development in India. Operating
Flood was conceived and formulated by National Dairy Development Board during the fourth
plan. It aimed at establishing a broad base for acceleration and development of the dairy
industry sponsored by the European Economic Community through world food programs.
Operation Flood was conducted to meet India rapidly increasing need for milk and milks
product, and making dairy industry capable of viable and self-sustaining growth. The
ideology followed by Operation Flood was the remunerative linking of the rural milk
production centre with the urban demand centre so as to build up a viable dairy industry.
STATE SCENARIO
Dairy co-operatives were also developed in Kerala as a part of operation flood. Dairy co-
operatives have a three tier structure in Kerala with primary milk supply society at the base
and milk supply union at the district level and a state level federation. This co-operative
society follows the Anand pattern of dairy development scheme. Apart from the state
federation two regional unions were also formed in our state.

2.2 COMPANY PROFILE
2.2.1 Milma Three-Tier Structure

Now well-known by the popular sobriquet ‘MILMA’, Kerala Co-operative Milk Marketing
Federation (KCMMF) was formed in 1980 as a state adjunct of the National Dairy Program
‘Operation Flood’. It is a three-tiered organization.
Milma
THREE TIER STRUCTURE
III KCMMF LTD

(Kerala Co-operative Milk Marketing Federation)
II REGIONAL CO-OPERATIVE MILK PRODUCERS UNIONS
1 2 3
TRCMPU ERCMPU MRCMPU
Thiruvananthapuram, Ernakulam, Kozhikode,
Kollam, Idukki, Kannur,
Alappuzha, Thrissur, Waynad,
Pathanamthitta Kottayam Malapuram,
Palakkad,
Kasargod
______________________________________________________________________
I APCOS
(Anand pattern co-operative societies)
Fig 2.2.1 KCMMF
KCMMF Units Corporate Office

Kerala Cooperative Milk Marketing federation Ltd (KCMMF), is the apex body of the Dairy
Cooperatives of Kerala, popularly known as ‘Milma’. The average daily milk procurement is
8.60 lakh L from 2961 village milk cooperative societies, 3 member unions covering 14
districts and 8.25 lakh milk producer members.
Central Products Dairy-Alappuzha

Alappuzha Dairy is directly managed by the Kerala Co- operative Milk Marketing
Federation. A Milk Powder Factory is also established in the dairy compound, which is only
one of its kinds in Kerala. Central Products Dairy (CPD) was commissioned on 23rd
December 1987 with a capacity of 60000 LPD. Central Products Dairy (CPD) located at
Punnapra, near Alappuzha was established as a facility for the manufacture of value added
products.
ERCMPU &Units
Ernakulam Regional Co-operative Milk Producers’ Union Ltd. (Ernakulam Milk Union),
Milma was registered on 12.9.1985 with Ernakulam, Idukki, Thrissur and Kottayam districts
in Central Kerala as its area of operation.
MRCMPU &Units
Malabar Regional co-operative Milk Producers Union (MRCMPU) Ltd is a Union of more
than 1000 village level dairy co-operative societies located in the six Northern Districts of
Kerala State in South India and it is owned by the dairy farmers who are members of each
affiliated society and who live in the area of operation of these societies. The area of
operation of MRCMPU Ltd comprises of six revenue districts of North Kerala vizKasargod,
Kannur, Wayanad, Kozhikode, Malappuram and Palakkad.
The Units of TRCMPU

Thiruvananthapuram Dairy:
Thiruvananthapuram Dairy is Located on the way to Kovalam 4 Km from the City. The Dairy
with a capacity to handle 1 lakh LPD was commissioned in 1992. The Dairy sells milk in
Thiruvananthapuram District except Chirayinkeezh Thaluk.
Kollam Dairy:
The Dairy was commissioned in 1986 with a capacity to handle 60,000 L per day and
subsequently expanded to handle 1 lakh L per day. Kollam Dairy is situated at Thevally in
Kollam District.
Pathanamthitta Dairy
A New Dairy Plant with 60,000 L capacity constructed at Thatta near Adoor in
Pathanamthitta district and was commissioned in April 2010. Milk is also packed there at
present. Now the entire milk in the district is being collected through Bulk Milk Coolers.
Alappuzha Marketing Cell

In Alappuzha district, 60,000 L per day dairy constructed under O.F II has been expanded to
1 Lakh L per day which is managed by KCMMF. Milk Procurement and marketing activities
are carried out by Union.
Mannar P&I Unit
Mannar P&I Unit coordinate the Procurement of Milk in Alappuzha district and providing
input service to the farmers.
Organization Objectives
 To channelize marketable surplus milk from the rural areas to urban deficit areas to
maximize the returns to the producer and provide quality milk and milk products to
the consumers.
 To carry out activities for promoting production, procurement, processing and
marketing of milk products for the farming community.
 To build up a viable industry in the state.
 To provide constant market and stable price farmers for their produce.
Board of Directors
 Shri. P.T GOPALA KURUP, Chairman (KCMMF Ltd.)
 Shri. X. ANIL I.A.S, Secretary (AH&DD)
 Shri. KALLADA RAMESH, Chairman (TRCMPU Ltd.)
 Shri. P.A BALAN MASTER, Chairman (ERCMPU Ltd.)
 Shri. K.N SURENDRAN NAIR, Chairman (MRCMPU Ltd)
 Shri. S. RAJEEV, Regional Head (CS), NDDB (Bengaluru)
 Shri. S GIREESH KUMAR, Representative (TRCMPU Ltd.)

 Shri. KARUMADI MURALI, Representative (TRCMPU Ltd.)
 Shri. T.P MARKOSE, Representative (ERCMPU Ltd.)
 Shri. P.S SEBASTIAN, Representative (ERCMPU Ltd.)
 Smt. MARY LONAPPAN, Representative (ERCMPU Ltd.)
 Shri. V. SUDHAKARAN, Representative (MRCMPU Ltd.)
 Smt. INDIRA GUPTA, Representative (MRCMPU Ltd.)

 Shri. GEORGEKUTTY JACOB, Director, Dairy Development Department

 Shri. O.B SURESH KUMAR, Under Secretary, Finance Department, Govt. of
Kerala
 Shri. G Anil Kumar, Managing Director (KCMMF Ltd.)
NATURE OF BUSINESS
The Milma is for the welfare of the farmers. The primary share holders of the organization
are farmers. Since it is a Government organization Milma mainly focuses on the benefit of
the farmers and the customer satisfaction. The motto of Co-operation is "of the people, by the
people and for the people". Milma is the foundation of the "three tier system" followed by the
organization. At the village level Milma have the Village Milk Co-operative Societies which
have the local milk producers as its members. The co-operate Social Responsibility (CSR) of
the company is that it provide 2- 3lakh loan to workers and also provide emergency loans.
There are many welfare activities for the workers like scholarship for their children, provide
subsidies, transportation and compensations. These Village Co-operatives unite at the
Regional level and form Regional Co-operative Milk Producers' Unions. These Unions are
federated at the State level to form State Federation namely Kerala Co-operative Milk
Marketing Federation (KCMMF).
2.2.2 PRODUCTS OFMILMA
Homogenised Toned Milk
Toned milk is considered as common milk, which contains 3% Fat and 8.5% SNF (Solid Not
Fat). Since the milk is homogenized, whitening capacity is more and less amount of milk will
be sufficient for whitening tea/coffee. This milk mainly focuses on domestic consumers and
is available in 500 ml in blue colour packet. Price of the toned milk is Rs21/-. Milma gives
4% of commission for the sale of the each packet of the milk to the dealers.
Double Toned Milk
Double toned milk contains high fat content of about 1.5% Fat and 9.0% SNF. The price of
the double toned milk is Rs 19/-. Double toned milk is also homogenized. Hence fat will not
settle at the top. Both the above milk can be stored for 2 days under cool condition below 7
degree Celsius.

SAMBHARAM
Sambharam (Butter milk) which is having 4.5% total solids is a favorite beverage in Kerala.
MilmaSambharam is the only product of its kind in the market and it is very popular
throughout the State. It comes in 200 ml cup. It is a seasonal product, mainly for summer
season. . The price of 200ml MilmaSambharam is Rs.10/-
CURD
It is fermented product prepared from pasteurized skim milk using curd culture from National
Dairy Institute (NDRI).Milma curd contains 0.5% fat and 9.0% SNF. It is delicious, tasty,
and free of cholesterol which makes it ideal for curries. Milma curd is available in 400ml cup
with a market price of Rs. 45/-, 200 ml cup with market price of 24 /-and 80gm cup at a
market price of 10/- . Double tonned curd of 500ml sachet is available at Rs. 27/-
GHEE
Milma Ghee Contains 99.7 % milk fat and is manufactured by melting fresh cream. Natural
aroma and flavor of ghee is retained since it is produced directly from fresh cream instead of
going in for melting stored butter. No artificial colours or flavours are added in Milma ghee.
Milma Ghee is available in 50 ml, 100 ml, 200 ml, 500 ml, 1litre, 15litre and their market
price are 31/-, 57/-, 110/-, 260/-, 500/-, 8040/-. Ghee is the only exporting products of Milma.
PEDA
An indigenous milk product manufactured by evaporating water content from wholesome

cow’s milk and sweetened with cane sugar. No colour or preservatives are added. It is
nutritious and delicious sweet bite for children and it is available in 20 gm. and in 10 pieces
box which cost Rs. 60/-. Also jack fruit peda is also available at Rs. 100/-
PANEER
Paneer also called chenna is a milk product made by coagulating boiled hot whole milk with
citric or lactic acid and subsequent drainage of whey. It is fresh source milk protein and has
good flavor and smooth texture. It is used in preparation of various dishes. paneer is available
in 100gm at Rs. 40/- 200 gm at Rs. 75/- 1 kg at Rs. 310/-

STERILIZED TONNED MILK (MILMA PLUS)
It is available in various flavours. The price of these types of sterilized tonned milk is Rs.22/-.
This product is one of the new product that was producing in milma dairy plant .It is available
in 200 ml single service glass bottle.
LASSI
Lassi is also available in various flavours like pineapple, mango.It is available in bottles at
Rs.25/-
MILMA SIP UP
Hygienically prepared product preferred by school children. It is made from pasteurized milk
added with sugar and available in different flavoursimages-productpics-icecream-mfat-nuts-
500x500.png
ICECREAM
Ice cream is made from dairy fresh cream using the state of the art of technology and comes
in a variety of flavours like vanilla, pineapple , strawberry, mango etc to name a few .
MILMA INSTANT DAIRY WHITNER
Milma dairy whitener is widely used to prepare tea/ coffee, delicious curd and is available in
200gm and 500gm packing.
PALADA MIX
Readymade payasam mix ideal for making delicious payasam. Milmapalada mix is available
in 200gm packing.
MANGO DRINK
Manufactured using UHT technology, milma mango is available in 200 ml tetra pack as well
as 250 ml, 500ml, 1ltr per bottles.
PACKAGED DRINKING WATER
Targeting the communities, milma drinking water is available in 1ltr packing.

MILMA BUTTER
With its natural golden color, milma butter is available in 100g, 200g and 500g in salted and
unsalted packs.
MILMA CHOCOLATES
Available in different variants as per the consumer preference .milky beasts is the milk based
chocolate, while choco beats is chocolate bar. Milmakrispy is chocomasscoated with wafer
biscuit, and the popular milmaeclairs.
GHEE
Made from cow.s milk, the golden coloured milma ghee is AGMARK certified and is famous
for its aroma and taste. Available in consumer packs of 50 ml, 100 ml, 200 ml PET jars, 2 ltr
and 5 ltr tins and 15 kg tins.
ICE CANDY
Water based candy lolly hygienically made using pasteurized water and safe to consume.
MILMA FLAVOURED BAR
Available in mango, orange, pineapple, strawberry, green apple flavours. Made from fruit
pulp and permitted flavours.
YOGHURT
A fermented milk product .plain as well as flavouredmilma yoghurt is available in125 g

packing. Rich source of lactobacillus bacteria.
BIRIYANI GHEE
Made from cream using a different process due to which taste and aroma increases, No
artificial flavor added.
GULAB JAMUN
Gulabjamun is a desiccated milk product manufactured by mixing khoa, maida and skimmed
milk powder, converting the mix into balls and then by frying the balls in ghee. The fried
balls when soaked in sugar syrup turn into delicious gulabjamun, which is then packed in
sterilized tins.

2.2.3 FUNCTIONAL AREAS
The Functional Departments in MILMA are:
 Procurement and Input Department

 Production Department
 Maintenance Department
 Store
 Purchase
 Personnel Department
 Finance Department
 Marketing Department
 Quality Department
 PROCUREMENT AND INPUT DEPARTMENT
Milma is a process oriented organization. The main raw material used in this industry milk.
Due care has to be taken in dealing with milk as it is highly perishable. As the name
resembles the procurement and input department is deals with all the functions regarding the
procurement of milk and technical inputs. Technical inputs means technical support to
increase the production of milk.
FUNCTIONS OF PROCUREMENT AND INPUT DEPARTMET
The functions of this department include:
1) Organizing Village level Milk producers Co-operatives

2) Organizing Milk routes
3) Supervision of Societies functioning
4) Training of staff and farmers
5) Providing veterinary aids to farmers
(1) Organizing village level Milk producers Co-operatives
This step includes starting, organizing, registration, coordinating and supervising the
activities of APCOS’s. APCOS means (Anand Pattern Cooperative Societies. The farmers are

members of APCOS from the General Body of the Regional Milk Unions, which Federate to
form the KCMM. APCOS are the village level or primary cooperative societies. They are the
farmers who supply milk to milma through societies. The farmers who supplied milk to
Milma through traditional societies i.e. before 1980-81 are known as Non-APCOS.
The first step in the organizing and registration of cooperatives is conducting of survey and
the formation of Gramasabha. Survey is conducted among 1200-1500 people including 500
to 600 households. The houses must have 500 milk giving animals among which 70% to 80%
must be mulch animals. And if the survey gives a positive report towards starting of
cooperatives society gramasabha is formed. It is formed according to the bylaws of Anand
pattern. A promoting council is formed which includes 5 to 7 members and one chief
promoter and share amount of Rs.11 is collected which includes Rs.1 as admission fee.
After collecting share amount the Deputy Director of the dairy apply to the District level
officer to approve Gramasabha and the society is registered. The activities of the society
become the members and chief promoter becomes the president of the Management
Committee.
1) Organizing Milk routes.
They select the feasible routes through which the milk can be transported from the societies
to the plant first and foremost, milma provides assured milk market and procures milk from
even the remote societies. Twice a day our milk collection trucks go to the societies and
collect milk.
2) Supervision of societies functioning
They supervise functioning of societies and take corrective actions
 Training of staffs and farmers
In keeping with the ideology of placing the instructions of progress in the hands of the
farmers themselves. An organization programs is offered to the farmers to equip them with
basic and fundamentals of cooperatives, accounting testing laws etc. A fully-fledged training
centre is functioning at Ramavamapuram.

 PRODUCTION DEPARTMENT
Supply of milk in our state is much below demand. The state has to procure milk from other
places. Milk is an essential commodity and the frequent increases in price will affect the
common man. Further with more investments coming in the population is also expected to
rise. Steps should be taken to encourage dairy farming. Hybrid varieties of cattle should give
to the farmers. This will help in the overall development of the state as well. Production
Department deals with the processing of milk.
FUNCTIONS
The important functions which come under production are:
(a) Reception of milk

(b) Milk processing which includes
 Chilling of milk
 Pasteurization
 Standardization
 MAINTENANCE DEPARTMENT
For an organization like milma maintenance department forms an inevitable part. This
department is concerned with the maintenance and repair works of existing machines of new
machines. It also handles all the electric wiring and other electric supplies. This department is
headed by Assistant Manager and is followed by deputy engineer, technical superintendent
and electricians.
Department ensures safety, maintains good hygiene inside the plant making the organization
a better place to work in. Workers provided with safety equipment like gloves and masks.
FUNCTIONS
This department mainly serves 4 different functions. They are:
 Maintaining the proper functioning of the plant and machines

 Purchasing the materials for packing of the products
 Purchasing the materials for packing of the products
 Purchasing the materials which required for the machines
 Maintenance

DUTIES AND RESPONSIBILITIES OF PRODUCTION AND MAINTENANCE
MANAGER
Expansion decision like increasing the plant capacity, purchase of machinery, new product
development etc. are either taken by the maintenance department itself or by maintenance and
production departments together.
Purchases can be:

 Direct purchase
 Cash on delivery system
 Documents through bank system
Assistant manager maintenance and dairy manager make decisions on purchase of machinery.
For purchasing new machinery approval of board of directors are needed. The production and
maintenance department together draw out the specifications machinery. Both based on a cost
beneficial analysis cost beneficial analysis, cost of the machinery is also estimated and a list
of suppliers is prepared. These documents are submitted to the board of directors. Purchase is
made both from in and out of the country. FIFO system is followed in supplying materials
from store. The organization maintains a workshop to address the maintenance work of all its
vehicles. Routine servicing, maintenance and repairing of vehicles and repairing of vehicles
owned by the organization are done here.
 STORES DEPARTMENT
Stores department include
Manager Assistant store officer Store Attender
Store apprentice
Major functions of stores department are:
 Receiving of materials and recording of receipts

 Arranging inspection and proper storage and preservation of receipts

 Issue of storage items to use departments
 Preparation of various report
 PURCHASE DEPARTMET
The main objectives of purchase department are:
 To develop and maintain good buyer-seller relationship

 To maintain uninterrupted flow of materials to support the development schedules
 Issue of purchase orders
 Follow up of purchase orders for delivery in due time
 PERSONAL AND ADMINISTRATIVE DEPARTMENT
The most important resources for an organization is human resources. So it’s very much
important to manage and utilize the human that is employees of the organization most
effectively .The functions of the department can be divided into personal functions and
administrative functions.
FUNCTIONS
 Recruitment and placement

 Induction and Orientation
 Training and Development of new employees
 Promotion
 Performance Appraisal
 Improving good working conditions for employees
 Formulating method of remuneration and incentive plan
Recruitment & Placement
Human resource department is concerned with the process such as recruitment, selection and
placement to the right type of employees to the right job. Permanent employees are appointed
through test and interview. Temporary workers are appointed through employment exchange
for a period ranging from 6 to 12 months. When vacancies fall in the organization Milma
registers the requirement of employees to the concerned post in the employment exchange.
This registration is either through directly or sending letters to the offices. There should be a

personal interview which is conducted by a panel of judges consisting of top officials like
Manager, HR Manager and the Head of the Departments
Selection Process
Temporary staffs are recruited by the concerned units and permanent staffs are recruited by
the head office, in the following process:
 Inviting application: TCMMF releases the advertisement in leading

newspapers showing the vacancy and quality required by the applicant.
 Screening the application: The next step is the screening of the application to
reduce the number of applicants and also to find out more suitable candidates.
 Test: Written test are conducted by TRCMPU to select persons for various
jobs. Test are conducted to know the level of ability, knowledge, interest,
aptitude etc. of a particular candidate
 Interview: Next step is the interview conducted by the top officials of Milma.
Interview is also conducted by a group of various managers.
 Final selection: If a candidate overcomes all the procedures given above, he
would be selected. An appointment letter is given to him mentioning the terms
of appointment, pay scale etc. The selected candidate undergoes a
probationary period of 6 months to one year.
Induction and Orientation
Initially there should be an induction period for about three months during which on on-the
job training should be given to the permanent employees. During the training period they will
be taken to all departments so as to understand the working of all departments and understand
how they all are related to one another. At last they will be placed in their own assigned post
Training and Development
According to T.N. Chhabra, “The purpose of training is to bring about improvement in the
performance of work. It includes the learning of such techniques as are required for the better
performance of definite tasks”. The workers are given job training regularly. In case of new
technological improvement senior operators are sending to Anand, Gujarat where NDDB
makes arrangements for training. The managers also have to undergo training programme at

Trichur or at any place decided by the federation from time to time. The managing board of
federation frames the policy regarding training of employees and the personnel department of
the plant complies with it. The head office schedules officers for training. The training fee
payment is met by the TCMMF for workers education. There are central Govt. offices in
every district. NIPM (National Institute of Personnel Management) provides spot training and
centre training through integrated training techniques.
Promotion
There is two level of promotion in this organization. Promotion is given on the basis of
seniority for staff. For standing officers departmental promotions are on the basis of seniority
and in connection with TRCMPU conduct personnel interview.
Performance Appraisal
This organization has the practice of appraising the performance every year for deciding the
promotion. The concerned departmental heads will give the report of employees to the
manager and according to that performance is appraised. Performance appraisal is done by
the basis of following factors;
 Knowledge of work.
 Attitude towards the work
 Decision making ability.
 Initiative
 Team work and interpersonal relationship with other employees
Motivation
In this organization employees are motivated monetarily as well as non-monetarily. The total
earnings of an employee include basic pay, dearness allowance, P&I and other allowances.
Working condition of Employees
The retirement age of the employee is kept as 58 years in this organization. The working
hours of the employees in the administrative section are from 10am-5pm and there are two
shifts in production department that is from 8am-4pm and 4pm-12am. In the production lab
and production department, 6am-2pm and 2pm-10am in the filling section. Canteen functions
inside the dairy from 5am-8pm and it is function on a contract basis mostly for about a year.

Method of remuneration the employee and incentive plan
The diary follows time basis wage payment system and also offers various financial and non
–financial incentives like:
 Monthly salary, promotions and bonus during festival season like Onam, Christmas
etc.
 Scholarships to the children of the employees from 10th to post graduation.
 There is a yearly salary increment on the basis of availing scale of pay for all the
permanent staff.
 FINANCIAL DEPARTMENT
The financial department of milma deals with all matter relating to finance such as
procurement of fund, determine the sources of funds and utilization of these fund. All the
rules and policies regarding the finance department are as per the TCMMF guidelines. The
transactions are recorded using a computerized accounting package which is exclusively
made for milma. Manual accounting finds no place in milma. Each units of milma records the
transactions and prepares its accounts relating to that particular department only.
FUNCTIONS
 Providing financial assistance as per the departmental requirements.

 Keeping the monetary transactions in the book of accounts except the marketing
department
 Finance department also deals with the systems department
 Systems department operates with software which is made by TCMMF, MILMA
Integrated Information System.
ACCOUNTING SYSTEMS
Double entry system of accounting includes both debit and credit aspects. All transactions are
computerized in this department and are made up-to-date. Trial balance and profit and loss
accounts are prepared half yearly. A uniform system is maintained as per the rules and
accounting systems set by NDDB.

SOURCES OF FINANCE
 LONG TERM: The source of long term finance is only term loans. CPD gets its
financial assistance from National Dairy Development Board (NDDB) through
KCMMF. There is an agreement between the federation and NDDB. As per the
agreement between them 70 % of the loan amount should be repayable and the
remaining 30 % subsidy.
 SHORT TERM: the source of short term fund is procured from the SBI at the
prevailing interest rates. It is mainly in terms of overdraft.
AUDITING PROCESS
The dairy has statutory auditing which is done by the registrar of the co-operative society. For
this purpose a representative is appointed in the dairy as their Concurrent Auditor. Budget is
an estimation of the revenue and expenses over a specified future period of time. Budget is
prepared every year by considering the procurement of plant and machinery, sales, increment
in salaries, quality control and engineering works, number of agencies and societies
registered depreciation and other types of expenses. All payment and allocations of funds to
other departments are strictly on budget basis. Each department if needed to be renewed
should check the amount allocated to each of these departments. The prepared budget is
submitted to the head office and gets approved. Budgets are prepared considering the annual
turnover.
TAX PAYMENTS
Every year a certain amount is paid as tax. Tax planning is done to avoid paying a huge
amount. Apart from this a certain amount of profit is paid to the bank as price difference to
the farmers. Out of the total revenue, about 90% is recovered from sale of milk, 10% from
other milk products.
Maintenance of Books and Records
The following books of accounts are maintained in the department
. Cash Book
. Bank Book
. General Ledger

. Journals
. Direct payment Register
. Bill Register
. Advance Register
 MARKETING DEPARTMENT
Marketing is a comprehensive term which includes set goods and services from products to
consumers. The marketing manager is the head of the department. The marketing officer and
marketing organizer comes under marketing manager. That distribution of milk and milk
products giving details to the production departments about how much to produced to next
day. Marketing manager is also responsible about the marketing accounting and market
development activities.
FUNCTIONS
 Brand Management
 Lean Flush Management
 To reduce or eliminate wastage
 Bulk trading of surplus products
 Institutional supply contracts
 To conduct promotional activities
 Packaging and product development
 Procurement and consumer Pricing
 Forecast demand as an aid for production
Brand Management
The art of creating and maintaining a brand is called brand management. Marketers see a
brand as an implied promise that the level of quality people have come to expect from a

brand will continue with future purchases of the same product. This may increase sales by
marking a comparison with competing products more favourable. It enables the
manufacturing to charge more of the product. Brand management is the application of
marketing techniques to a specific product, product line, or brand. It seeks to increase the
product’s perceived value to the customer. It involves activities connected with branding,
brand promotion, product introduction etc.
Lean Flush Management
Milk production has two seasons. Milk production goes up very high during Flush period that
is rainy season and milk availability comes down during the lean season i.e. summer season.
It creates an imbalance in the availability of this milk throughout the year. So in order to meet
this Milma used to convert the excess milk during the flush season into milk powder and
store it. During the lean season they will convert the milk powder into milk and ensure
uniformity in production.
Institutional supply contracts
Milma supplies its product on contract basis with institutions such Army, Navy, Hospitals,
and Hostels etc. The Ernakulam unit makes such supplies to Naval Base and to some
hospitals.
To conduct promotional activities
It includes both brand promotion and promotional campaigns for different products.
Packaging and Product Development
Both development of new product and package development are carried out by the marketing
development.
Procurement and Consumer Pricing
Marketing Department initiates the pricing decisions and which are duly approved by
Programming Committee or Board. In Milma they follow Cost plus Pricing.
Forecast demand as an aid for production
Marketing Department forecasts the daily demand for its products. E.g. Marketing
Department in Milma gives intimation to the production department regarding how many

packets of Jersey, Smart and Toned milk has to be produced per day and production
department produces accordingly.
COMPETITORS FOR MILMA PRODUCTS
Competitors for Milma milk
In Kerala, there are mainly three types of milk producing and selling sources. They are
cooperative societies, private brands and household sale. Most of the private brands of milk
are bringing milk from other states and sell it in Kerala. There are more than 36 milk brands,
the shares of each of these brands are too small in Kerala no strong competition is faced by
Milma. People’s Dairy Development Project (PDDP) milk venture which was founded by
Father Joseph Mutumana, chairman of Centre for Social Development Services (CSDS) is the
only effective competitor for Milma. Milma brand was able to lead the Kerala market
because of the assured quality. The situation was such that other milk brands were being
bought only when Milma brand was not available.
In the dairy product category all the multinational brands are available. Other brands
available in the market are:
 PDDP
 Nirmal
 Jeeva
 PentaMilk
 Gopika
 Shakthi
 Milka
 Neutro Milk
 Royal
Report given as clean chit to the Milma brand. It has reported that the quality of Milma brand
of milk tested in the State confirmed to PFA standards and that no samples of Milma milk

showed the presence of any neutralisers. According to the notification of the Dairy
Development department, only four private diaries- PDDP (Ernakulam),
Malanadu(Kottayam), Nirmalgram(Ernakulam) and KSE(Thrissur)- no other private dairies
have the license or the registration to process and market milk in the State, under the Milk
and Milk Products’ Order 1992, prolonged by the Centre. Thirty-two private dairies are
operating in the State flouting all norms.
It is pointed out that many private dairies like the Kamadhenu(Ernakulam) have been
continuing business despite closure orders from the Dairy Development Director. In another
study which was conducted on Aug 30, 2007. It was found that two more milk brands, Royal
and NMD, have not maintained quality standards prescribed for milk under the Prevention of
Food Adulteration Act.
Competitors of Milma Ice cream
Milma Ice cream is of high quality. The advantage of Milma over the competitors is that
when the others uses vegetable fat for production, Milma uses milk fat which is separated
from the milk directly during the time of processing milk using a separator. Vanilco, a vanilla
beans manufacturing company. Milma has recently decided to drop artificial flavour in its
brand of ice-creams, following a tie-up with Vanilco. This would mean that besides
employing over 20,000 people, milk co-operatives would also absorb three tones of cured
beans per year from the new crop enterprise of Kerala farmers. The various competitors are
as follows:
 Amul
 Uncle John
 QUALITY CONTROL DEPARTMENT
Quality is never an accident; it is always the result of high intention, sincere effort, intelligent
direction and skilful execution; it represents wise choice of many alternatives. In engineering
and manufacturing, quality control and quality engineering are used in developing systems to
ensure products or services are designed and produced to meet or exceed customer
requirements. Quality control is the branch of engineering and manufacturing which deals

with assurance and failure testing in design and production of products or services, to meet or
exceed customer requirements.
Milk is a highly perishable product. So quality of the product very much affects the existence
of the firm Milma. Quality of the milk is maintained according to PFA standards. Outgoing
milk is checked for its FAT, SNF percentages and bacteriological quality. It provides
technical assistance not only to the plant but also to the Primary cooperative societies
associated with the plant. Most preference is given to the products produced in the plant. The
main functions of quality control department are the inspection of milk of each society.
Inspection is mainly conducted in order to make sure that the production is carried out as per
their standards. Receiving inspection -receiving inspection of milk while receiving the raw
milk from the society. The test conducted during the reception of milk is called organoleptic
test. This test is conducted to find out whether milk is good or bad. That is the appearance,
colour, taste are all to be note in this test.
OBJECTIVES OF INSPECTION
 Reduce poor performance
 Maintain standards
 Reduce economic loss
 Remove defective milk

STRUCTURE OF THE QUALITY AND CONTROL DEPARTMENT
QUALITY CONTROL OFFICER
DAIRY CHEMIST
LAB TECHNICIAN
LAB ASSISTANT
LAB ATTENDER
Fig (2.2.3) structure of quality &control department
FUNCTIONS
 Render technical and legal assistance to primary dairy co-operatives and Regional Milk
Unions.
 Liaison and maintain quality of milk and milk products as per the standards. Attend to
consumer complaints on quality problems.
 Checks the quality of metals used in the machinery in the plant.

Chapter – 3
Literature Review
The concept of Total Quality Management was originally developed by the American, W.
Edwards Deming, after World War II for improving the production quality of goods and
services. The idea was not seriously regarded by Americans until after the Japanese, who
adopted it in 1950 to resurrect their post war business and industry, used it to dominate world
markets by the 1980s. By then, most U.S. manufacturers had finally accepted that the
nineteenth-century assembly line factory model was outdated for modern global economic
markets and that better approaches to general management were needed.
Definitions of Total Quality Management vary according to the specific context within which
managers and practitioners operate. The concept of Total Quality Management was
developed by an American, W. Edwards Deming, after World War II for improving the
production quality of goods and services. The concept was not taken seriously by Americans
until the Japanese, who adopted it in 1950 to resurrect their postwar business and industry,
used it to dominate world markets by 1980. By then, most U.S. manufacturers had finally
accepted that the nineteenth-century assembly line factory model was outdated for the
modern global economic markets and that better approaches to general management were
needed.
Total Quality Management stands at the far end of a quality management continuum, which
includes other approaches to quality such as quality control, quality assurance and total
quality control. Total Quality Management, however, departs from these in the pure scale on
which it attempts to address quality issues. It marks a qualitative leap into viewing quality as
something which must be approached at every level and aspect of the project and must strike
at the very heart of the assumptions underlying how it is managed, organized and relates to its
outside environment. Total Quality Management seeks to infuse a project with a total quality
outlook, a new set of management values, in which every procedure is aligned to the delivery
of quality output. While Total Quality Management can continue to be rooted in a systematic
analysis, pre- planning and blueprinting of services, the focus switches from a process driven
by external controls through procedure compliance, standardization and auditing, to a process
of habitual improvement, where control is embedded within, and driven by the project
developers.

Total quality management (TQM) is the system of activities directed at achieving delighted
customers, empowered employees, higher revenues, and reduced costs (Juran, 1995). A
recently published study (Bou-Llusar et al., 2009) reviews the variety of definitions of TQM
available in the literature (Oakland, 2000; Dale, 2003; Eriksson and Garvare, 2005) and
concludes that it is a management approach which prescribes guidelines for organizations to
operate and achieve high performance. The literature suggests that organisational excellence
is a key stage on the TQM journey. Furthermore, it is often applied to TQM enabling actions
as an effectiveness measure (McAdam, 2000). To practice the guidelines in a systematic way
many quality awards and excellence models like, Deming Prize, Malcolm Baldrige National
Quality Award (MBNQA) and Excellence Model by the European Foundation for Quality
Management (EFQM) have been evolved. The scope of TQM and models of performance
excellence has not been restricted to any particular region or a particular sector of industries.
Armand Feignbaum. Feignbaum was instrumental in advancing the “cost of non-

conformance” approach as a reason for management to commit to quality. He recognized that
quality was not simply a collection of tools and techniques, but a “total field.” According
toFeignbaum, it is the customer who defines quality
Philip and Crosbyare well known throughout the world in relation to their concept of
“Do it right first time ‘and “Zero defects’. Crosby has also defined quality as conformance
to the requirement which the company itself have established for its products based on the
customer expectations. They also believed that the companies deviated from what is actually
needed and as a result of such a deviation the companies spend around 20% of revenue doing
things wrong and doing them over and over again. In the Crosby approach the quality
improvement can be done by creating a core of quality specialist within the company. There
is also a strong emphasis on the top to down approach (Crosby, Philip: Quality is free, 1980).
Based on an extensive literature review of conceptual as well as empirical studies (Flynn et

al., 1994; Powell, 1995; Ahire et al., 1996; Black and Porter, 1996; Zeitz et al., 1997),
Motwani (2001) has identified seven factors critical to TQM implementation and 45
measures of TQM performance. The seven factors include top management commitment;
quality measurement and benchmarking; process management; product design; employee
training and empowerment; vendor quality management; and customer involvement and
satisfaction.

Kaoru Ishikawa. The late Japanese expert on quality was strongly influenced by both
Deming and Juran, although he made significant contributions of his own to quality
management. Among his key contributions were the development of the cause-and-effect
diagram (also known as a fishbone diagram) for problem solving and the implementation of
quality circles, which involve workers in quality improvement. He was the first quality expert
to call attention to the internal customer —the next person in the process, the next operation,
within the organization.
W. Edwards Deming. Deming, a statistics professor at New York University in the 1940s,
went to Japan after World War II to assist the Japanese in improving quality
andproductivity.Deming, were so impressed that in 1951, after a series of lectures presented
by Deming, they established the Deming Prize, which is awarded annually to firms that
distinguish themselves with quality management programs. Deming compiled a famous list
of 14 points he believed were the prescription needed to achieve quality in an organization.
His message was that the cause of inefficiency and poor quality is the system, not the
employees. Deming felt that it was management’s responsibility to correct the system to
achieve the desired results.
In addition to the 14 points, Deming stressed the need to reduce variation in output (deviation
from a standard), which can be accomplished by distinguishing between special causes of
variation (i.e., correctable) and common causes of variation (i.e., random).
Deming’s concept of profound knowledge and learning that guided Japan’s rise to a world
economic power.
The key elements of Deming’s 14 points are: constancy of purpose, continual improvement,
and profound knowledge. Profound knowledge has four key components:
 An appreciation for a system.
 A theory of variation (develop a system to reduce the variation in

output and distinguish between special and common causes of
variation).
 A theory of knowledge (knowledge is derived from theory and learning

cannot take place without theory of knowledge).

 Psychology (management must find a way to motivate workers).
According to JURAN The anatomy of *quality assurance” is very similar to that of quality
control. Each evaluates actual quality. Each compares actual quality with the quality goal.
Each stimulates corrective action as needed. What differs is the prime purpose to be served.
Under quality control, the prime purpose is to serve those who are directly responsible for
conducting operations—to help them regulate current operations. Under quality assurance,
the prime purpose is to serve those who are not directly responsible for conducting operations
but who have a need to know—to be informed as to the state of affairs.
Juran in his book also states that Quality awareness training is critical to the success of any
TQM implementation. The training should start at the top of the organization as the
introductory component of the executive education. Our experience has shown us that, while
many executives have become educated in the language and methods of quality, the diversity
in their individual backgrounds has prevented them from finding the common threads to tie
all of their collective knowledge together. Developing comprehensive quality awareness
subject matter is an effective method to galvanize the thinking of the executive team toward
quality and set the stage for initiating the quality training process for the rest of the
organization.
A quality management system (QMS) is a formalized system that documents processes,

procedures, and responsibilities for achieving quality policies and objectives. A QMS helps
coordinate and direct an organization’s activities to meet customer and regulatory
requirements and improve its effectiveness and efficiency on a continuous basis.
Shigeo Shingois also a quality Guru in the, who introduced the strategy of continuous
improvement. The strategy was the continuous improvement through the creative
involvement of all the employee s. One of his another contribution was the development of
the philosophy of poka-Yoke. The philosophy of poka-yoke is to prevent mistakes from
being made i.e. identify the error before they become defect, making the process or the
productdefect free.

Genichi Taguchi. Taguchi is best known for the Taguchi loss function, which involves a
formula for determining the cost of poor quality. The idea is that the deviation of a part from
a standard causes a loss, and the combined effect of deviations of all parts from their
standards can be large, even though each individual deviation is small.
Gilmore (1974) defined quality as the degree to which a specific product conforms to a
design or specification. Ford (1991) believes that “Quality is defined by the customer;
customers want products and services that, throughout their lives, meet customers need and
expectations at a cost that represents value.” Juran (1974) described Quality as fitness for
use, while Johnson and Winchell (1989) in their own word regarded quality as “the totality
of features and characteristics of a product or service that bear on its ability to satisfy stated
orimplied needs”. Garvin (1984), an authority on product quality said that the definitions of
quality fall into several categories: Users based, manufacturing based and product base. Some
organizations also try out different ways to achieve the highest quality level in different ways;
one amongst such way is the process of Benchmarking.
According to Bogetoft, benchmarking is the systematic comparison of the

performance of one firm against other firms. Benchmarking can be used in many different
ways and settings. The main objectives of benchmarking explicitly address the allocation of
task and possibility by restructuring of firms or the industry. Benchmarking helps in
coordinating operations at the optimal cost and performance (Bogetoft, Peter and
LarsOtto:Benchmarking with DEA. Sfa. Vol 157, Springer Sciences and Business Media.
2010).As suggested by the experts in the field of quality management, it is very important to
keep the interest of all the customers while producing a product.
Based on an extensive literature review of conceptual as well as empirical studies (Flynn et

al., 1994; Powell, 1995; Ahire et al., 1996; Black and Porter, 1996; Zeitz et al., 1997),
Motwani (2001) has identified seven factors critical to TQM implementation and 45
measures of TQM performance. The seven factors include top management commitment;
quality measurement and benchmarking; process management; product design; employee
training and empowerment; vendor quality management; and customer involvement and
satisfaction. The factors are briefly explained below in the form of excerpts from the work by
Motwani (2001).

(i) Top management commitment: The degree of visibility and support that
management takes in implementing a total quality environment is critical to the
success of TQM implementation. Four distinctive ways that management can
support TQM implementation: allocating budgets and resources; control through
visibility; monitoring progress; and planning for change. There should be a focus
on transferring management support to the shop floor. Management should plan to
reduce traditionally structured operational levels and urmecessary positions.
Simplifying the organization will lead to the establishment of an infrastructure of
integrated business functions participating as a team and supporting the strategic
vision of the company.
(ii) Quality measurement and benchmarking: A company must embrace strong
acceptance and maintenance of a total quality measurement and benchmarking
plan. Quality programs should measure the percentage or the number of parts that
deviate from the acceptable in order to prevent the recurrence of a defect. The cost
of quality could include relevant changes in market share, warranty costs, and
inspection, reworks, and scrap costs. The cost of nonconforming raw materials
could include lost revenue or productivity costs and would aid in vendor selection
and certification.
(iii) Process management: This factor emphasizes adding value to processes,
increasing quality levels, and raising productivity per employee. However, there
were varied tactics emphasized to accomplish this factor. The list contains:
improving work centre methods and installing operator-controlled processes that
lead to a lower unit cost, embracing kaizen (continuous improvement)
philosophies, reducing the operator material handling duties, promoting a design
for a manufacturing program, and achieving a compact process flow.
(iv) Product design: Design practices provide an ideal starting point for the study of
quality performance. A wide range of possible choices exist till designs are
finalized. Organizations should consider the factors when plaiming for the product
design processes: understand fully the customer product and service requirements;
emphasize fitness of use, clarity of specifications and producibility; involve all
affected departments in the design reviews; and avoid frequent redesigns.
(v) Employee training and empowerment: Employees must be oriented to a
company's philosophy of commitment to never-ending improvement, be informed
of company goals, and be made to feel a part of the team. Proper training includes
explanation of overall company operations and product quality specifications..
(vi) Vendor quality management: Many companies now support, at least in theory,
the need to work more closely with their suppliers. Partnerships with suppliers
have the greatest appeal to most companies due to the shared risks associated with
the development of new products. Vendor partnerships should be based on a
quality program and accepted documentation of progress towards continuous
improvement in
(vii) Customer involvement and satisfaction: Customer service should be addressed
from two main areas: internal customer service and external customer assurance.
Components of an internal customer service plan should include providing timely
and dependable deliveries, presenting improvements or cost saving suggestions to
management and authorizing employees to self-implement solutions, cross-
training employees for mastery of more than one job and providing adequate
technical training. An external customer service program should include providing
customers with timely information and quick responsiveness to complaints, and
maintaining a corporate goal to reduce the quantity of questions or complaints
while recognizing all successful efforts by employees in providing outstanding
service. Measures need to be those which show where improvement has been
made and where improvement is possible, rather than merely monitoring people's
work.
Factors which are critical to success or failure of TQM may be classified as soft and hard.
Nofal et al. (2005) explains the soft factors as those which are intangible and difficult to
measure. Such factors are related to leadership and employee involvement and include
commitment and involvement of senior executives; comprehensive policy.quality goals of the
organisation; supervisors, unit heads and divisional managers assume active new roles;
empowerment; effective communication; internal customer supplier concept; teamwork;
system for recognition and appreciation of quality efforts; and training and education. On the
other hand, systems and quality tools and techniques are referred to as the hard factors of
quality. Benchmarking, performance measurement, quality control tools, cost of quality,
supplier and customer management, and quality management systems are included in the
hard category of factors. Combining various soft and hard factors, Al-Nofal et al. (2005)
have proposed 19 elements of TQM. The elements include leadership; employee involvement
and empowerment; middle management role; training and education; rewards and
recognition; teamwork; role of employee unions; policy and strategy;
According to Haigh and Morris (2002)Quality management is an ingredient towards

Jdequate quality delivered to customers. Quality management involves: management system.
Delivery, quality, cost, technology and the employees, because according to Donaldson,
(2001), no matter how perfect a strategy may be, it depends on people for implementation.
All these various components of quality management when effectively harnessed will result
in customer satisfaction; where the intention is not to stop at a point in the process of
implementation, but rather a continuous improvement of the mechanism for a suitable
competitive advantage through the use of employees as organizations effective internal asset.
According to Sanjiv Kumar Jain; Inderpreet Singh Ahuja, ISO 9000 is a

management system that outlines the minimum requirements for organizations to follow for
quality management system (QMS) and hence helps to ensure that a company.
According to Simons (2000) Organizational characteristics such as transformational

leadership, job design, social interaction and organizational culture are identified as potential
predictors of ability, motivation and opportunity. Organizations that allow their employees to
Practice their profession to the point of attaining the highest position available in the
Organization, will certainly get the best out of their employees, knowing full well that
climbing up to the highest position in terms of hierarchy will not be compromised as this
Practice is also embedded in TQM strategy.
Al-Nofal et al. (2005) have proposed 19 elements of TQM. The elements include leadership;
employee involvement and empowerment; middle management role; training and education;
rewards and recognition; teamwork; role of employee unions; policy and strategy; resources
management; communicating management; managing suppliers; accredited quality
management system; organizing for quality; managing by process; benchmarking; self-
assessment; cost of quality; quality control techniques; and measuring customer wants and
satisfaction. They have examined the impact of such factors on the success of TQM
implementation in different geographical contexts. They have found that top management
commitment, maximizing employee commitment; involvement and empowerment, managing
by customer-driven systems and processes, and continuous improvement, are most essential
and fundamental to effective and successful implementation of TQM.

Seetharaman et al. (2006) have investigated why TQM fails in many organizations despite
the proven fact that it is an approach which leads to improvement in various dimensions of
organizational performance. The research points out that, though most organizations start
TQM efforts for their success, they are frequently exposed to the factors which may cause
their TQM efforts to delay or even fail. TQM is a sure bet to reverse poor performance, but
when it did not yield the expected results, it was deemed a failure. The review has been done
to identify the common problems that lead to the failure of TQM implementation in the
organization and has pointed out the critical success factors of TQM. Nevertheless, the
overall results of this research imply that the understanding of the elements that cause failure
to the TQM implementation can provide needed help for companies involved in long-term
continuous improvement efforts. If the advanced TQM approach is properly followed, it will
help the companies to achieve organizational excellence. 33 Literature on critical success
factors (CSFs) of TQM has recently been reviewed and documented by Karuppusami and
Gandhinathan (2006) using Pareto analysis. They have examined various empirical studies
on TQM (e.g. Saraph et al., 1989; Anderson et al, 1995; Ahire, et al, 1996; Wilson and
Collier, 2000; Wall et al, 2003) and have identified 56 critical success factors. Out of which,
14 CSFs have been found accounting for 80 per cent and accordingly have been labeled as
vital few. The remaining 42 factors, accounting for 20 per cent of occurrences frequency,
constitute the useful many category. The role of management leadership and quality policy,
supplier quality management, process management, and customer focus and training has been
among the vital few CSFs.
Leonard and McAdam (2002) describe continuous improvement as one of the

terminologies use by quality manager in referring to TQM results and further they stress
that with regard to the terms used, continuous improvement is most popular which implies
an operational, rather than strategic, focus for TQM.
The TQM approach outline by Stevenson (2007) supportsthe factthat TQM is customer
focus. This approach is describe as follows: find out what the customer wants; design a
product or service that meets or exceeds customer wants; design processes that facilitates
doing the job right the first time; keep track of results and extend these concepts to
suppliers .Focusing on both internal and external customers’ needs or understanding the
customers is the driving force behind TQM schemes (Stevenson, 2007; Himanshu, 1999).

(Heckl, et al., 2010). Quality is used as a strategic weapon that companies use to compete within the current
markets Quality pleases the consumers who are the most influential people for any business whether in the service
sector or the manufacturing sector. Therefore, for a company to have the advantage over other rival companies, it
has to identify and develop quality of its products and services and specifically compete on this dimension. When
companies are able to produce goods and services of a high quality, they not only please the consumers but also
put themselves in a position where they achieve internal effectiveness and reduce their cost of operation.
According to Cohen, the customer needs can be identified. Once the needs are identified, and
then hive (0 be ranked, One they are ranked, the data can be organized using Quality function
Deployment (QED), The QED | a method for structured product planning and development
that enables « development team to specify clearly the customer want and needs, Then
allocate each proposed product or service capability systematically in terms of its impact on
meeting the specifications (Cohen, 2004).
Crosby, have suggested that the best practice of achieving the best quality is by including all
the employees in the purpose of operations, This idea was taken up by the experts and a new
technique coined called as the Quality circle.
According to Hutchins, Quality Circle (QC) are small group of volunteers from the some
work area, who meet regularly in order to identify, analyse and resolve quality andrelated
problems in the area of their responsibility. QC revolves around the principle of voluntary
participation and collaborative decision making. For the implementation of a QC
Programmed, employees will have to volunteer. The QC group must be well trained in
groupdynamics and problem solving methods that are a part of the QC technology (Hutchins:
In pursuit of quality, 1990).
According to Heizer and Render (1993) quality is often the major Issue becausepoor
quality can be very expensive for both the producing firm and the customer. It istherefore
imperative for every organization's operation manager to ensure that his or her firmdelivers a
quality product at the right place, at the right time and at the right price.
A quality management system (QMS) is a formalized system that documents
processes,procedures, and responsibilities for achieving quality policies and objectives. A
QMS helps coordinate and direct an organization’s activities to meet customer and regulatory
requirements and improve its effectiveness and efficiency on a continuous basis.
Quality management systems serve many purposes, including:

Improving processes
Reducing waste
Lowering costs
Facilitating and identifying training opportunities
Engaging staff
Setting organization-wide direction
A Quality Circle is a small group of employees from the same work area who voluntarily
meet regularly to identify, analyse and resolve work related problems (Ref. Hutchins,
‘Inpursuit of Quality’ 1990) This not only improves the performance of any organization, it
also motivates and enriches the work life of employees. The philosophy behind Quality
Circles is building people. A Quality Circle tackles small, work related problems through
teamwork. Statistical tools are used to analyse problems, members arrive at a solution by
consensus and implement it themselves. This leads to empowerment at the grass root level.

Chapter-4
Data Analysis and Interpretation
4.1 PERCENTAGE ANALYSIS
After the data have been collected, it was then recorded, tabulated and edited accurately. Here
percentage analysis test was applied for analysing and interpreting data. It is an important test
of significance developed by statisticians.
4.1.1 Educational Qualification wise classification
Table 4.1.1 Education Qualification
Educational qualification No: of respondents Percentage
Plus two 5 10
Degree 20 40
Diploma 5 10
PG 10 20
Others 10 20
Total 50 100

Educational Qualification
45
40
35
30
25
20
15
10
0
plus two Degree Diploma PG others
education
Fig4.1.1. Education Qualification
Analysis
From the above graph is clear and shown that the respondents have plus two qualification are
10 %, having degree with highest educational qualifications of40% ,diploma having 10 %
PG is 20 %and having other qualification is also20%.
Inference
It shows that majority of employees are graduates working here. It is clear majority of
educational qualification of respondents are post graduated and graduated. Therefore we can
say that the education level in Milma Dairy Plant Tvmis high so training them cannot be
much easier.

4.1.2 Years of Experience
Table 4.1.2 Years of experience
Years No of respondents Percentage
Below 5 22 44
Below 10 20 40
Below 15 8 16
Below 20 0 0
Below 25 0 0
Total 50 100
Years of Experience
50
45
40
35
30
25
20
15
10
5
0
Below 5 Below 10 Below 15 Below 15 Below 20
Experience
Fig 4.1.2 years of experience
Analysis: From this table we can understand that 44%of the employees are having
experience of below 5 years. There are 40 % of employees having below10years of
experience. And below 15 years of experience of employees are of 16 %.

Inference
Majority of employees are experience within 5 years. Here employees are also working with
more than 10years. So that we can make comparison between the years.
4.1.3 Age distribution
Table4.1.3 Age distribution
Age No of respondents Percentage
20-25 6 12
25-30 15 30
30-35 17 34
35-40 4 8
40-45 8 16
Total 50 100
Age
40
35
30
25
20
15
10
0
20-25 25-30 30-35 35-40 40 -45
Age
Fig 4.1.3 age distribution

Analysis
From this table, the respondents 34% are between 30-35. 30 % of the respondents are
between 25-30.There is low response from 35-40 age distribution.
Inference
We can understand which age group of people are more respondents to the questionnaire and
which less respondents’is between 35-40.
4.1.4 Efficiency of TQM in the Organization
Table 4.1.4 Efficiency of TQM
Response No of responsiveness Percentage
Strongly Agree 15 30
Agree 15 30
Moderate 5 10
Strongly Disagree 10 20
Disagree 5 10
Total 50 100

Efficiency of TQM in the Organization

35
30
25
20
15
10
0
Strongly Agree Agree Moderate Strongly Dis Agree
DisAgree
Efficiency
Fig 4.1.4 efficiency of TQM
Analysis
This graph is showing the respondents for efficiency of Tqm in the organization .30% of
employees are strongly agree on the efficiency of Tqm in the organization .30 % are agree on
it.10 % are strongly disagree on it.
Inference
Majority of the employees are agreeing on the efficiency of Tqm in the organization. It
clearly shows that Tqm works efficiently in the organization.

4.1.5 Benefits of TQM in the Whole organization
Response No.of responsiveness Percentage
Agree 12 24
Moderate 10 20
Disagree 8 16
Total 50 100
Table4.1.5 Benefits of TQM
Benefits of TQM In the whole Organization

30
25
20
15
10
0
Strongly Agree Agree Moderate Strongly Disagree Disagree
Benefits of TQM In the whole Organization
Fig4.1.5 benefits of TQM
Analysis
There are 20 % of respondents say that Tqm is beneficial for the whole organization .At the
same time 24 % are strongly Agree on that.20 % are saying moderately on it. 16% are
disagreeing it.
Inference: This means how utilizes the Tqm Beneficial’s to the whole organization. The
organization get more beneficiaries from TQM.
4.1.6 Satisfaction on Customer reliability
Table4.1.6 satisfaction on customer reliability
Agree 17 34
Moderate 4 8
Disagree 2 4
Total 50 100
Customer realiability
40
35
30
25
20
15
10
0
Strongly Agree Agree Moderate Strongly Disagree
Disgree
Customer realiability
Fig4.1. 6 satisfactions on customer reliability
Analysis
38% of employees are strongly agree on Tqm effects on Customer reliability .34%are agree
upon this statement. There are only 4% disagree this.

Inference: So that we can clearly know about the Tqm plays an important role in focusing on
customer reliability. From this we can assume that the organization have enough customer
reliability on TQM in the organization.
4.1.7 Awareness about concepts of TQM
Table 4.1.7 Awareness about concepts of TQM
Strongly Agree 9 18
Agree 17 34
Moderate 6 12
Disagree 3 6
Total 50 100
Awareness about TQM concepts

40
35
30
25
20
15
10
5
0
Strongly Agree Agree Either Agree nor StronglyDisagree Disagree
Disagree
Awareness about TQM concepts
Fig4.1.7 Awareness about concepts of TQM
Analysis
There are 34 % clearly awareness about TQM concepts. 30 % are strongly disagree on
Awareness about concepts There are only 6 % of employees are disagree on this statement.

Inference
So that we understood that majority of the employees are well aware about the concepts of
TQM and they get needed training on regarding this. The Organization took the initiative to
promote this.
4.1.8 Certification
Table4.1.8 Certification
Response No of respondents Percentage
Agree 18 36
Moderate 9 18
Disagree 0 0
Total 50 100
Rate of certification
40
35
30
25
20
15
10
0
Rate of certification
Fig4.1.8 Certification

Analysis
This graph shows that the rate for certification of TQM in the organization. Here 36 of %
employees are saying that strongly agree on certification. 30% saying that are Agrees on the
certification and 18 %of respondents are moderate.
Inference
From this picture we understood that TQM certification may held frequently andit will also
show the effectiveness of Tqm in the organization. It leads the organization to attain better
quality.
4.1.9 Raise in overall efficiency in the organization.
Table4.1.9 Raise in overall efficiency in the organization.
Strongly Agree 5 10
Agree 10 20
Moderate 15 30
Disagree 15 30
Total 50 100

Rise in overall efficiency

35
30
25
20
15
10
5
0
Strongly Agree Agree Moderate Strongly Disgree Disagree
Raise in overall efficiency
Fig4.1.9 Raise in overall efficiency in the organization.
Analysis
This graph shows the overall efficiency of the organization .Only 10 % responded that
strongly agrees on the efficiency. The respondents of 20% are agreeing and majority of the
30% of the employees are saying that it is in a moderate stage .10%are strongly disagreeing
and 30% disagreed on this statement.
Inference
We can understand that employees the overall efficiency of the organization is in a moderate
wayon run it can grow or go down it all depend on certain factors like training and
development also play an important role on it.
4.1.10. Tqm used as a tool for increasing Profits
Response No of Respondents Percentage
Strongly Agree 5 8
Agree 10 20
Moderate 15 30
Disagree 15 30
Total 50 100

Tqm used as a tool for increasing profits

35
30
25
20
15
10
0
Tqm used as a tool for increasing profits
Fig4.1.10 TQM used as tool for increasing profits
Analysis : This graph represents Tqm used as a tool for increasing the profits. 30%
moderately are saying that it is used as a tool. 30% are disagreeing this statement .20%are
agrees that it is a tool used. Only 10 % of the employees are agreeing the statement.
Inference : In this Organization Tqm is used as a tool for increasing the profits.
4.1.11 Customer satisfaction on Tqm
Table4.1.11 Customer satisfaction on Tqm
Strongly Agree 8 16
Agree 25 50
Moderate 2 4
Disagree 10 20
Total 50 100

Customer Satisfaction on Tqm

60
50
40
30
20
10
0
Fig4.1.11 Customer satisfaction on Tqm
Analysis
This graph shows that the value for customer satisfaction on Tqm in the organization. 50 %
agreesthe customer satisfaction is important. 16 %are responded strongly agrees on the
statement and20% are disagreeing statement.
Inference
From Tqm has a vital role in customer satisfaction on Total quality management. So in Tqm
it should be satisfied the customers too.
4.1.12 Evaluating quality system
Table4.1.12 Evaluating quality system
Strongly Agree 0 0
Agree 23 46
Moderate 0 0
Disagree 16 32
Total 50 100

Evaluating quality system

50
45
40
35
30
25
20
15
10
5
0
Evaluating quality system
Fig4.1.12 Evaluating quality system
Analysis
The next graph is shown that evaluating Quality system in the organization .46% of
employees responded that strongly agreeing on it. . 32% are responded that is a disagreeing
statement.
Inferences
It is very important that evaluating quality system .So they can reduce errors on quality.
4.1.13 Solve Quality related problems.
Table4.1.13 Solve Quality related problems.
Response No ; of Respondents Percentage
Agree 19 38
Moderate 9 18
Disagree 2 4
Total 50 100

Solve quality related problems

40
35
30
25
20
15
10
5
0
Strongly Agree Agree Moderate Strongly disagree Disagree
Solve quality related problems
Fig4.1.13 Solve Quality related problems.
Analysis
From above graph represents the team for solving the quality related problems in the
organization. 38 %are responded that agrees on solving the quality related problems within
the organization. 32 % are very strongly agreeing this statement.
Inference
The organization is solving the quality related problems by setting up of multi-disciplinary

teams. Sometimes the organization cannot handle the problem within the organization in such
situation the organization find solution from consulting other efficient teams.
4.1.14 Level of Quality Goals
Table4.1.14 Level of Quality Goals

Agree 23 46
Moderate 12 24
Disagree 2 4
Total 50 100

Level of Quality goals

50
45
40
35
30
25
20
15
10
5
0
Level of Quality goals
Fig4.1.14 Level of Quality Goals.
Analysis : The level of quality goal is shown at the above graph. 46% of employees are
responded that agreeing that level of goal in quality. 24 % are saying that moderately.26 %
are strongly agree on the statement.
Inference: In this we can understand that the level of goal setting is quality management is
also important. Achieving the customer reliability is the important goal setting in Tqm. More
over goal setting as like other managerial activity,Tqm is also inevitable.
4.1.15 Impact of Tqm in the whole Organization
Table4.1.15 Impact of Tqm in the whole Organization
Agree 17 34
Moderate 10 20
Disagree 0 0
Total 50 100

Impact of TQM in the whole organization

45
40
35
30
25
20
15
10
5
0
Strongly Agree Agree Moderate Strongly Very Low
Disagree
Impact of TQM in the whole organization
Fig4.1.15 Impact of Tqm in the whole Organization
Analysis
From above graph is shown that the impact of Tqm in the whole organization .42 % rate the
testing procedure is strongly agree .34 % rates the testing procedure at agree level.
Moderately 20 % are marked the statement.
Inference: From this we can assure that the impact of Tqm in the whole organization is
effectively done. The organization controls well about the quality measures.
4.1.16 Quality improvement Program that can be adopted in Milma
Table4.1.16 Quality improvement Program that can be adopted in Milma
TQM 19 38
Continuous improvement 8 16
Six sigma 3 6
Quality control 16 32
Pareto charts 4 8
Total 50 100

Quality improvement program that can be adopted in

Milma
40
35
30
25
20
15
10
5
0
Quality improvement program that can be adopted in Milma
Fig4.1.16 Quality improvement Program that can be adopted in Milma
Analysis
From above graph the type of quality improvement program can be adopted in the
organization. So 38% employees strongly agreed on it.is implemented Tqm itself. 32%
responded that is quality control measures. 16 % ageing, moderately agreeing by 4% in the
organization.
Inference
The best method of Tqm program that can be adopted in future of the organization is
suggested by the employees is Tqm itself. The existing Tqm program of the organization is
good.
4.1.17Quality improvement plan support on whole organization
Table4.1.17Quality improvement plan support on whole organization

Agree 15 30
Moderate 5 10
Disagree 6 12
Total 50 100

Quality improvement plan support on whole

organization
35
30
25
20
15
10
0
Strongly Agree Agree Moderate Strongly Disagree
DisAgree
Quality improvement plan support on whole organization
Fig4.1.17Quality improvement plan support on whole organization
Analysis
The above graph is shown that Tqmeffects on the whole organization. 30 % agree upon this
statement. 30 % strongly agree that Tqm affect the organization. There is 20%disagree on this
statement.
Inference
Tqm is inevitable in any organization. It shows that it will positively or negatively affect the
organization. The impact on the Tqm will affect each department of the organization.
4.1.18 Tqm goal that enables Customer reliability
Table4.1.18 Tqm goal that enables Customer reliability

Agree 17 34
Moderate 3 6
Disagree 2 4
Total 50 100

Benchmarking system
40
35
30
25
20
15
10
0
Benchmarking system
Fig4.1.18 Tqm goal that enables Customer reliability
Analysis
There are 38%strongly agree on Tqm goal that enables Benchmarking system, 34 %agrees on
this .6%are rated moderately. 18% are strongly disagree on this statement. Only 4% disagree
about it.
Inferences
From this, organization gives so much importance to the benchmarking .So that they set
Tqm goals that enables on benchmarking. It helps the organization to compare the
previous performance with the benchmarking.

4.2Chi-Square Testing
Chi square is a non-parametric test. It is non parametric because this test is not concerned
with any population distributions and its observations. It enables us to find out the degree
of discrepancy between observed and theoretical frequencies and hence to find whether it
is due to error of sampling or due to chance. Value of chi square is always positive as
each pair is a squared one. Chi square value lies between zeros to infinity. Hence
significance test is one tailed on the right hand side of the standard normal curve.
The formula for calculating chi-square is;
(𝑂 − 𝐸)2
𝜒 2 = ∑[ ]
𝐸
HYPOTHRSIS:
Null Hypothesis (H0) = There is no significant relationship between the overall efficiency of
the organization and TQM.
Alternative Hypothesis (H1) =There is a significant relationship between overall efficiency

and TQM.
4.2.1To find out the relationship between overall efficiency of the organization and Tqm
Strongly Moderat Disagre Strongly

Opinion Agree Total
Agree e e Disagree
Efficiency of
3 3 1 2 1 10
TQM
Benefits of TQM 2 3 2 2 1 10
Raise in overall
efficiency of 1 2 3 1 3 10
organization
Raise in profit 1 2 3 1 3 10
Quality
improvement 3 3 1 2 1 10
plan
Total 10 13 10 8 9 50

Observation Table
4.2.2. Observation table
Observed Frequency Expected Frequency

(O) (E) O-E (O-E)^2 ((O-E)^2)/E
3 3.9 0.9 0.81 .21
2 4 -2 4 2
1 2.3 -1.3 1.69 0.73
1 2.5 -1.5 2.25 0.9
3 1.6 1.4 1.96 1.23
3 2.1 0.9 .81 0.39
3 1.7 1.3 1.69 0.99
2 3.4 -1.4 1.96 0.58
2 0.5 1.5 2.25 4.5
3 2.2 0.8 0.64 0.29
1 0.2 0.8 0.64 3.2
2 0.5 0.9 0.81 4.5
3 1.2 1.8 3.24 2.7
3 1.6 1.4 1.96 1.22
1 2.1 -1.1 1.21 0.58
2 1.1 0.9 0.81 0.73
2 1.9 0.1 0.01 1.34
1 1.7 -0.7 0.49 0.12
1 2.9 -1.9 3.61 1.24
2 1.1 0.9 0.81 0.74
1 2.9 -1.9 3.61 1.24
1 3.5 -1.6 2.56 1.7
3 2.1 0.9 0.81 0.39
3 3.9 -0.9 0.81 0.21
1 0.4 0.6 0.36 0.9
Total 29.01

(𝑶 − 𝑬)𝟐
𝝌𝟐 = ∑[ ]
𝑬
= 26.35
Degree of freedom = (r-1) (c-1)
= (5-1) (5-1)
= (4) (4)
= 16
Level of Significance = 5%
Table value at 5% level of significance and 16 degree of freedom =26.30

Inference:Since the calculated value is greater than that of table value, we reject the null
hypothesis and accept the alternative hypothesis. Therefore, there is a relation between
overall efficiency of the organization and TQM of the organization.

FINDINGS
 From the study,it is found that majority of the employees are graduate and post
graduate. So that we can say that the educational qualification in Milma Dairy Plant is
high so the awareness and training them is much easier. Therefore the quality of work
is better because of the Professionalism in the field of study.
 This study shows that majority of the employees are men in the firm and also from the
total respondents, there are of age group between 30-35. It is found that are
knowledgeable, dedicated and enthusiastic on their work.
 From analysis of efficiency of TQM in the organization, there is efficiency of Tqm
and that efficiency of Tqm effectively work in the whole organization. To adapt the
changes the firm meet their goals and need to be efficient .Efficiency requires an
overall approach and cannot be reached by focusing on a particular process or on a
specific area within the organization .In that context the Milma Dairy Plant
Trivandrum is efficient.
 The next analysis shows the benefits of Tqm in the organization. From the majority of
the respondents states the organization gets benefit from the Tqm. The benefits are
defect reduction, quality improvements, quality assurance, customer satisfaction etc.
 From this analysis the organization get satisfied from the customer reliability .Better
quality, better implementation on Tqm in the organization, the customers become
more and reliable to the quality. It helps to more focus on increasing the customers.
Tqm in this organization, is more people focused management system that aims at
continual increase in customer satisfaction.
 It is found that most of the employees are well about TQM concepts .The results also
suggested that the Tqm awareness in the organization as a whole and some additional
improvements in the knowledge of Tqmconcepts to the employees of the organization
which could enhance the level of TQM implementation and hence the business
performance ..
 From the analysis it is proved that the Milma Dairy Plant , Trivandrum has got many
certification on TQM such as ISO 9001and 2001.S that it shows the organization
continuously improves the ability to deliver high quality products and services to
customers .Quality certification helps to improve the business excellence and provide
better productivity and also provide a competitive edge .

 The analysis reveals that raise in overall efficiency of the organization is to achieve
productivity and process efficiency by identifying and eliminating problems in work
processes and systems .Tqm helps in raise in overall efficiency and brings many
benefits to the organization in terms of cost and time.
 From the analysis the TQM increases profits by concentrating on quality
advancement. To attain a higher perceived value for both products and services
offered, it is crucial that there be improved quality to justify better profits margins.
 The analysis has shown that majority of the responded that customer satisfaction on
TQM is vital to the organization. TQM is aimed at achieving long –term success with
a strong focus on customer satisfaction .The organization tries to achieve the quality
in satisfying the needs of customers.
 This analysis shows that the evaluation of quality management system in the
organization .Evaluating the quality management system is essential, because Milma
like complex manufacturing, addressing quality goes beyond reducing number of
defects. In this production processes have tolerance of error .To minimize the issues
and errors, an evaluating Quality Management System is required.
 It is found that solving the existing number of quality control measures are available
in this organization to prevent control problems or reduce the negative impact of
quality issues.
 This analysis shows that the level of quality goals .An effective quality management
system should have specific goals related to the company’s overall strategic goals.
This organization enables the goals clearly it can identify the tasks that allow it into
achieve its targets. It puts everyone on the same and working towards the same goal.
 This analysis investigates the impact ofTqm in the whole organization is that is a total
organization approach for meeting the customer needs and expectations. It involves
all employees in using quantitative methods to continuously improve the
organization‘s performance. The output of the quality carried out effects of
organization as a whole.
 This is well founded that as organization grapple with quality management, they seek
ways of defining and measuring various dimensions of quality in their efforts to
organizational performance.

SUGGESTIONS
 The company has already established quality management system, so far easy for
them to adopt a higher standard, quality circle and continuous improvement which
will help in improving profit and efficiency of the organization.
 The organization should try to implement new quality control strategies and quality
circles.
 The company must have to give training and development program and conduct more
awareness program related to the TQM for the employee’s .It will help the employees
for better commitment.
 The difficulty of Tqm is solving the quality related problems and it may be made by
faulty systems .Such mistakes should identified and eliminated through mechanisms
like ‘poke yoke’.
 The organization can be adopt the best method is continuous improvement, this helps
the organization improve their efforts that involve small teams that spend a short time.
Considering testing improvements .The team then presents its findings to
organization. Management periodically reviews the solutions to make sure that they
continue to benefit the team.
 Motivation and reward should give to the employees and it works as a magic an each
employees.
 Self-potential system should be encouraged.
 There should be regular review of quality management system in the organization.
 Proper cooperation should be necessary in the company

CONCLUSION
Total quality management (TQM) is considered a very important factor for the
long‐term success of an organization.. Hence, many organizations are not in a position
to understand clearly the concept of TQM, in terms of knowing what has to be
implemented and what area to focus on. To overcome these issues, this study attempts
the overall efficiency of the whole organization and TQM implementation list of these
elements can be undertaken by any manufacturing organization striving for
excellence.
Milma is playing a vital role in serving the rural area and contribution for the
economic upliftment of farmers. Milma reaps great profits by equipping with latest
technology and producing better quality products .It is serving best quality milk and
milk products to its consumers, there by maintaining their top position in the market
.It has atomized manufacturing and every process is provided with automated and
manual. Milma is asset to the state in terms of quality and nutrition. Milma Dairy
Plant established on1991.
This study is concluding that there is a inter relation between overall efficiency and
Tqm in the organization .The overall efficiency of organizations leads to better
implementation of Tqm at Milma Dairy Plant Trivandrum. The organization should
develop some strategies like quality circles, continuous improvement, etc. Then
Milma Dairy Plant achieve higher position in the industry.

REFERENCE
 Milma, [Online: web]

 A. Banerjee, “Dairying systems in India”
 IMARC Group, “The Cooperative System and the Evolution of the Indian
Dairy Industry
 B. M. Vyas, “Indian dairy industry - Past, Present and the Boom Ahead”,
 Antony, J.; Leung, K., Knowles, G. & Gosh, S. (2002), “Critical success factors of
 TQM implementation in Hong Kong industries”, International Journal of Quality
 and Reliability Management, 19(5), pp. 551-556.
 Awan, H. M., & Bhatti, M. I. (2003). An evaluation of ISO 9000
registration
 practices: a case study of sports goods industry. Managerial Finance, 29(7), 109-
 134.Black, S. A., & Porter, L. J. (1996). Identification of the Critical Factors of
TQM.
 Burli, S. B., Kotturshettar, B. B., & Dalmia, R. V. (2012). Six TQM
Practices. Skimming & Scanning, SCMS Journal of Indian Management
 Flynn, B. B., Schroeder, R. G., & Sakakibara, S. (1994). A framework for quality
management research and an associated measurement instrument. Journal of
Operations management.
 Ciampa, Dan (1992). Total Quality: A User's Guide for Implementation. Reading,
Massachusetts: Addison-Wesley.
 Martínez-Lorente, Angel R.; Dewhurst, Frank; Dale, Barrie G. (1998), "Total Quality
Management: Origins and Evolution of the Term", The TQM Magazine, Bingley,
United Kingdom: MCB University Publishers Ltd, vol. 10
 Houston, Archester; Dockstader, Steven L. (1997), Total Quality Leadership: A
Primer (PDF), Washington, D.C.: United States Navy, pp. 10–11
 Delora M.; Doherty, Linda M. (February 1990), Total Quality Management Case
Study in a Navy Headquarters Organization,
 Kannan, V. R., & Tan, K. C. (2005). Just in time, total quality management,
and supply chain management: understanding their linkages and impact on business
performance. Omega, 33(2), 153-162.

 Kaynak, H. (2003). The relationship between total quality management practices and
their effects on firm performance. Journal of operations management.
 Creech, Bill (1994), The Five Pillars of TQM: How to Make Total Quality
Management Work
 Juran, Joseph M. (1995), A History of Managing for Quality: The Evolution, Trends,
and Future Directions of Managing for Quality.
 Holmes, Ken (1992), Total Quality Management.
BIBILIOGRAPHY
BOOKS
C R Kothari, Research Methodology. New Age International Publisher, New Delhi.
M N Brose, Research Methodology, Shreenivas Publication,Jaipur,2004
R Pareenselvam , Production and Operations Management EEE ,Haryana.
JK Sharma ,Operations Research Theory And Application ,Trinity Press, New Delhi

Questionnaire
1. Name ;
2. Designation ;
3. Educational qualification ; Plus two Degree Diploma PG others
4. Years of Experience ; Below 5 Below 10 Below 15 Below 20
Below 25
5. Age ; 20-25 25-30 30-35 35-40 40-45
6. Do you think that TQM work efficiently in this organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
7. Is it TQM beneficial for the whole organization ?
Strongly Agree
Agree
Moderate
Disagree
8. Are you satisfied with the customer reliability on TQM?
Strongly Agree
Agree
Moderate
Strongly Disagree

Disagree
9. Are you well aware about the concepts of TQM and their impact on Organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
10. Do you have the certification of Tqm in the organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
11. Rate the raise in the overall efficiency of the organization.
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
12. Is Tqm used as a tool for increasing profits?

Strongly Agree
Agree
Moderate

Strongly Disagree
Disagree
13. Is there have customer satisfaction on TQM?

Strongly agree
Agree
Moderate
Strongly Disagree
Disagree
14. In this organization the evaluating quality system regularly?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
15. Quality related problems solved within the organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
16. Do you have separate goal setting for quality?
Strongly Agree

Agree
Moderate
Strongly Disagree
Disagree
17. There is an Impact in Tqm on Organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
18. Do you have quality improvement programs can be adopted for increasing overall
efficiency of the organization?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree
19. Does your quality improvements plan have full support on the Whole Organization?
Strongly Agree
Agree
Moderate
Strongly Disagree

Disagree
20.Do you have benchmarking system ?
Strongly Agree
Agree
Moderate
Strongly Disagree
Disagree


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A STUDY ON EVALUATING THE OVERALL EFFICIENCY OF TQM AND ITS

IMPLEMENTATION AT MILMA DAIRY PLANT TRIVANDRUM

Total Quality Management is an extensive and structured organization management approach

Total Quality Management is an organizational philosophy, based on the principle that

Total Quality Management is an approach to improvement which seeks to harness the

1 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

1.1 STATEMENT OF THE PROBLEM

1.2 SCOPE OF STUDY:

2 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

1.3 OBJECTIVES OF THE STUDY

1. To evaluate the overall efficiency of Total Quality Management and its

1.4 RESEARCH METHODOLOGY

Research is a systematized effort to gain knowledge. The research methodology adopted

Business research is a systematic enquiry that provides information to guide business

Research Methodology is a way to systematically solve the research problems. It may be

Quantitative research method

Quantitative research method emphasizes quantification in the collection and analysis of

3 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

Qualitative research method

1.4.1 Research Design

1.4.2 Sampling Design /Technique

Sampling method – simple random sampling.

4 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

1.4.3 Period of study

1.4.4 Sample Unit /Sample Size

Data Collection method

1.4.5 Data Analysis Tool

5 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

The formula for calculating chi-square is;

Oij= Observed frequency of the cell in ith row and j th column

Eij =Expected frequency of the cell in I th and j th column

Hℴ : There is no relation between overall efficiency of the organization and

Total Quality Management.

1.5 LIMITATIONS OF THE STUDY

6 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

7 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

2.1 INDUSTRY PROFILE

8 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

ANAND is a small village of farmers in

9 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

The Anand Milk Union Limited has a three tier structure.

1. Village level Primary Co-operative Society called APCOS.

2. District Milk Producers Union.

3. State Level Milk Marketing Federation.

NATIONAL DAIRY DEVELOPMENT BOARD

10 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

· Animal husbandry activities

· Dairy Development Department

· Kerala Livestock Development Board

11 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

2.2.1 Milma Three-Tier Structure

III KCMMF LTD

KCMMF Units Corporate Office

Central Products Dairy-Alappuzha

The Units of TRCMPU

13 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

 Shri. S GIREESH KUMAR, Representative (TRCMPU Ltd.)

 Smt. INDIRA GUPTA, Representative (MRCMPU Ltd.)

14 DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

 Shri. G Anil Kumar, Managing Director (KCMMF Ltd.)

2.2.2 PRODUCTS OFMILMA

Homogenised Toned Milk

Double Toned Milk