We are living a time that needs and demands special attention and firm commitment towards practicing ethical norms and value and environmental safety at all the manufacturing facilities. The management of mohammadi group has a great responsibility to influence the conditions under which it manufactures the product. While accepting the facts the management understands and respects the different norms, ethic and values it encounter and does not compromise violation of any human right and the fundamental compliance issues at work place.
The management always prefer that it all activity in the interest of society, national community and company itself. Objective of the study 1. 1. General objective: The general objective of this report is to express the practical experience by working in a company and to link the theoretical knowledge with its application in the real life situation. The report also aims at acquiring first hand knowledge “Improving production quality through effective human resource management” as well to suggest ways and means to improve the current practices.
1. 1. 2 Specific objective
• Analyze the organizational activities Analyze the specific activities like production process.
• To identify the imperative process of production those are the basis of garments manufacturing.
• To identify the types quality improving plan. Explain the identifies issues which can help them to provide effective human resource management. 1. 1. 3 Origin of the report: BBA internship program is a four credit compulsory course for the business student graduating from Stamford University Bangladesh. The internship program of Stamford University Bangladesh mostly focus on the field that a student is concentrating.
The work on this report was carried out as an internship program at Mohammadi Group, Dhaka in the “improving production quality through effective management” 1. 1. 4 Background of the study: The report is submitted to Ms. Samina Huq, lect. stamford university Bangladesh as a part of internship program. This is a partial requirement for the Bachelors of Business Administration (BBA) Degree, and it carries 4 credit hours. As a part of this program a report has to be prepared by every intern. The report is based on the information which is gathered during the internship period.
However in my staying at Mohammadi Group, I completed the project titled “Improving Production Quality through Effective Human Resource Management. ” The topic is selected by me and it is approved by my University Supervisor. 1. 2 Why Human Resource Management Practice Is Necessary For A Company?
• A HR manager doesn’t want to:
• Hire the wrong person for the job.
• Experience high turnover.
• Find people not doing their best.
• Waste time with useless interviews.
• Have your company to court because of your discriminatory actions.
Major outlines to a manager responsibilities for effective human resource management :
• Placing the right person on the right job.
• Starting new employees in the organization (orientation).
• Training employees for jobs that are new to them.
• Staff appraisal.
• Improving the job performance of each person.
• Staff motivation.
• Gaining created cooperation and developing smooth working relationships.
• Interpreting the company’s policies and procedures.
• Controlling labor cost.
• Developing the ability of each parson.
• Creating and maintaining department morals.
Human resource management is the key elements for any development organization. Through an effective human resource management expected and satisfactory result can be achive. quality of production can be ensure if human resource management is established properly and effectively. 1. 3 Methodology To prepare this report data are collected from following source: Primary source:
• The primary data was gathered through informally discussed with factory personnel’s and making observations during the period of internship etc.
• Expert opinion. Teacher of Stamford University.
• Interview with the executives and officers of S. Nahar Garments Ltd. Secondary sources: Some secondary data was collected to make the report more concrete. This are-
• Publish document
• Official file
• Relevant books, internet, journals etc. 1. 4 Limitations: Some limitation or barriers ware faced while conducting the study. the limitations which I faced during my study are as follow:
• There is no previous study and written information on such topic was available.
• Getting relevant papers and documents were strictly prohibited. Latest information is was not available.
• To protect the organizational confidence some parts of the report are not in depth.
• The time was not sufficient for such a study.
• Without holyday it was difficult to make time to visit University supervisor. C H A P T E R T W O 2. 1 S NAHAR GARMENTS: S Nahar garments is a sister concern of MOHAMMADI GROUP being a company of the leading privet sector business. It gives the highest value of its entire component contributing to the production, management and revenues where the human resource was conceder as the prim factor.
An excellent environment in human resource management having very good employee –management communication and relationship, attractive remuneration, benefit and incentive schemes,super working condition maintaining the international standers of compliance have ensure the highest level of job satisfaction and resulted to retaining of skilled manpower through whom brought the sheer success for the company. S Nahar is a ISO certified company. becouse of their good quality assurance in every sector they got this international stander certificate.
At the same time the company believes its employee are the asset of the company and they are the most important element of their precious environment 2. 2 COMPANY PROFILE: S Nahar garments is a modern garments engaged exclusively in development and production of readymade garments. Here is a profile of S Nahar garments in below- NAME OF THE COMPANY: S Nahar garments and textile mills ltd Establishment : 1985 In charge : Mr. Ataur Rahaman (G. M) Line : 06. Listing Status : Privet Limited Company Work Force : 756.
It is understood that once fabrics are being cut everything is over. You have no scope to change even a minor point required to be changed. Therefore,before we go for cutting we should:
• Check width,shade and quality of fabric.
• Confirm the face of fabric
• Check lay – face,shade,width and height.
• Check maker wheather it is in accordance with the quality of fabric or not.
• Cut fabric smoothly so that the shape of parts remain as per pattern.
• Check each part with pattern so that any discrepancy in cutting can be short out and replaced before it go in to line.
• Bundling and numbering should be mentained to avoid shading.
• Maintain register of your supply in size and color way quantity. 2. 3. PRODUCTION:
• Before you go into any production, clean all the machines.
• Compare approved sample before you go into production.
• Make operator understand that, what has to be done.
• Make in line Q. C. understand that, what has to be checked.
• Make sure that, every operation done properly.
• Check measurement pice by pice in line where it is required.
• Avoid dumping in line. Neither on table nor under the machine.
• Don’t keep any goods on the floor.
• Insure that, no dirty or oil mark in garment.
• If any fault is found , don’t lay it down for next day.
Rectify it within production hour.
• Please cut thread as much as possible in line. Ensure quality that is :
• All parts joint properly
• All measurements are acceptable
• No shade garments is made
• No joint stitch, broken stitch and skid stitch is here.
• No dirty or oil mark is here.
• No uncut threat is here. Now your goods are good enough for shipment 2. 3. 5 Finishing section :
• After receiving goods from sewing floor, keep record in size and colour.
• Clean un cut threads both from inside and top of garments.
• Iron properly, confirm folding.
• Check hang tag, barcode sticker, poly etc. wether these are in accordance with P. O. or not.
• Don’t use any dirty or crush poly.
• Confirm assortment.
• Close cartons but cheque : Paper gum tape are being used. ? Belting with p. p tape or with any other materials are being done in accordance with p. o
• Conduct a pre inspection by quality controller before you offer final inspection. Now you can offer your buyer for inspection 2. 3. 6 HUMAN RESOURCE MANAGEMENT
• Conducting job analysis.
• Planning labor needs and recruiting job candidets.
• Selecting job candidates.
• Orienting and training new employees.
• Managing wages and salaries.
• Providing incentives and benefits.
• Appraising performance.
• Training and developing.
• Building employee commitment. C H A P T E R T H R E E 3. 1 What is production?
Production is a business activity that uses people and machinery to convert materials and parts into salable product. Two type of company engaged in this activity. A processing company, the first type, is a firm that converts natural resource to raw material. The second type is a manufacturing company that converts raw materials into consumer and industrial goods. Product are often use to make other product, so one firms finished may be another firms component part. This type of interdependence is common. 3. 2 Production methods: All product can not be made in the same way , the nature of the product determine how it will be produce . traditionally these method can be classified as analytical, synthetic, continuous, intermittent. 3. 2. 1 Analytical process:
In the analytical process, raw material is broken down to form new product 3. 2. 2 Synthetic process: Synthetic process is the opposite of analytical process, because materials are combined instead of separated to form a certain product. 3. 2. 3 Continuous process: Continuous process is a production method that use the same machinery performs the same operations repeatedly over relatively long period of time. 3. 2. 4 Intermittent process: Firms that use intermittent process is engaged in a production process that shuts down equipment periodically and readjust it to make a slight different product. Production does not run the same day in and day out. he intermittent process is used by job shop, companies that make product to customer individual specification. 3. 3 PRODUCTION CONTROL Production control, one of the most important concerns in making a product, is coordinating the interaction of people, materials and machinery so at products are made in the proper amounts at the required times to fill orders. Six steps are involved: planning, routing, scheduling, dispatching, and follow-up and quality assurance 3. 3. 1 Planning: Successful production, like other successful business activities, is based on planning. Production planners know what materials, equipment, process, and working time must be allotted to make a given time. Often they re form^. production workers themselves, so they can visualize the end product at various stages of completion, knowing from experience what remains to be done. The production plan is a document that contains a list of materials and equipment needed to manufacture a finished product that also specifies which operations will be performed in- house or out-of-house. In addition, this plan reveals any operations that require special machinery or equipment to be brought out of storage or purchased and set up when the product reaches a particular stage of completion. Production planer like S Nahar garments.
They coordinate the performances of purchasing, manufacturing, shipping and marketing, all of which contribute o or need information about the status of an order at various stages of completion. 3. 3. 2 Routing: Routing is the production control step in which a logical sequence is established for the operations that the product must undergo on its way to completion. Each job’s path is defined, thus determining what work will be done at what point. The person handling routing for a brewery must take into account all of the following steps: germinating the barley gain, cleaning it, milling it, weighing it, cooking it, blending it with water, removing the grain solids to produce a clear liquid, brewing the liquid, straining out hops, cooling the liquid, fomenters it, and again, filtering and packaging the beer. 3. 3. Scheduling: Scheduling is the production control step that allots time for each operation along the route. Knowledgeable production planner is asset here. Schedules that allow too much or too little time can lead to slack periods in various departments, causing wasted time and perhaps employee layoffs, or create bottlenecks that back up work at certain points, causing late deliveries and canceled orders. Production planner also has to take network time into account. A production planner who does not know how much time to allow will leave workers idle at next step along the route. A product rarely follows the original schedule from start to finish.
Production planner must reschedule work in process because of canceled orders and customer requests of earlier delivery dates of because of a machinery breakdowns, design changes, strikes, and inclement weather, all of which can cause lost work time and delays in the delivery of essential materials. 3. 3. 4 Dispatching. Dispatching occurs after jobs have been planned, routed, and scheduled. This is the production control step in which a production planner release a job to the first production department on its route. Before dispatching, production control employees must gather up the materials and parts required by the production plan and issue them to the correct department. 3. 3. 5 Follow-up: Follow-up is the production control step in which production planners monitor each job’s progress along its route, and report and attempt to deal with any delays or difficulties that occur.
A job is usually identified by number so it can be traced from one operation or department to the next. Follow-up is essential in these cases to ensure that work moves according to schedule. When delays occur, production planners should be notified so they can bring the job back on schedule or reschedule it. 3. 4 Quality assurance Total Quality Management Program: Total quality management is an approach of doing business that is initially practiced by Japanese for more than 50 years and ~ gains its respect in ”. S. A: in late 1980s. The individual elements of this system such as the use of statistical data, strategic planning, teamwork, employee involvement have been used by the organizations for many years.
But the effective collaboration and communication of these elements results the new management philosophy. 3. 4. 1What is quality: Quality can be defined as the totality of features and characteristics of a product or service that bears on its ability to satisfy given needs. Another way “quality measures how well a product or service meets customer needs, he basic consideration is thus always the extent to which the product or service meets the customer’s expectation. Besides above this, there are several definitions of quality or quality dimensions. According to David Garvin it may be either:
• Transcendent: Quality is something that is intuitively understood but nearly impossible to communicate. Like beauty or love. Product Based: Quality is the features and attributes of a product
• User Based: If the customer is happy then it is of good quality.
• Manufacturing Based: If the product conforms to the design Specifications then it have a good quality.
• Value Based: If the product is perceived as providing good value for the price, it is quality product. So it shows that quality is a dynamic state and changes continually as it goes to different customer . it gives rise the two types of customer: Internal and external customer. Anyway since customer is the use; of a product, they are the ultimate judge of the quality. Hence quality involves meeting customer need and exceeding customer expectation. To satisfy a customer we need quality product.
And a product is again a result of people, process, service and environment. Therefore management of product, people, process, service and environment to meet and exceed customer expectation gives rise to Total Quality Management. 3. 4. 2 Why do we need Quality management The advances in communication and transportation technology coupled with open market economy have made people from all over the world a global customer. Now a garment is designed in Italy, the raw material is coming from China, the fabric may go to India and then it is marketed in New York, Paris, and London. Another counterpart may choose to collect raw material from India, make in Bangladesh and sell in New York, Paris and London.
This example shows how a garment manufacturer in Bangladesh is competing with Indian counterpart. This type of global competition is taking place everyday. This used to be a norm for large organization but now for open market economy small organizations are forced to play this role. The global market place exerts enormous, relentless pressure on the organizations to continually improve quality while simultaneously reduce the price they charge for goods and services. The key to achieve higher quality and lower prices for customer is the reduction of expenses associated with unhappy customers… expenses that amount as much as 25% of the cost of sales. The cost of poor quality accounts for 15-30% of a company’s overall costs.
When an organization does what is necessary to improve its performance by reducing deficiency in key areas (cycle time, warranty costs, scrap and rework, on time delivery etc. ) , it can reduce overall costs without eliminating essential services, functions, product features and personnel. Reducing cost associated with poor quality is mandatory for companies that hope to compete in the global market. The flowing figure shows how a poor quality cost. |Traditional Cost | |1. Waste 2. Rejects 3. Inspection | |4. Customer returns 5. Rework 6. Testing 7.
Recalls | |Hidden Cost | |Excessive over time | | |Pricing Errors |Handling complaints | |Billing Errors |Expediting | |Excessive turnover |System cost | |Premium freight costs |Planning delays | |Development cost of failed products |Late paperwork | |Field service cost Lack of follow-up | |Overdue receivables |Excess inventory | |Unused capacity |Customer allowance | 3. 5 C0ST OF QUALITY There is a prevailing and persistent attitude in the business world that quality costs money: some claim too much. What they miss but are the cost of poor quality that is shown earlier. Still there is something you have to pay to improve your quality. To find this let us see what the total production cost of a product is.
It is made up of three components.
• Total production cost = Basic Production cost + Loss due to defects + Cost for reducing defect.
• Basic Production Cost = labor costs, material cost, equipment cost, energy etc.
• Cost for reducing defects = Preventive cost and Appraisal Cost. These are generally known as cost of quality. 3. 5. 1 Preventive Cost: The cost of setting up, planning, and maintaining a documented quality system
• Quality planning establishing production process conformance to Design specification procedures and designing of test procedures and test equipment.
• Quality and process engineering (including preventive maintenance). Calibration of quality related production equipment
• Supplier quality assurance.
• Supplier assessment.
• All Training.
• Defect data analysis for corrective action.
• Time spent on quality audits. 3. 5. 2 Appraisal Cost:
• Laboratory acceptance testing.
• Inspection and tests by inspectors.
• Setup of inspection and test
• Inspection and test material.
• Product quality audits.
• Review of test and inspection data.
• On-site performance test.
• Internal test and release.
• Evaluation of materials and spares.
• Supplier monitoring.
• ISO 9000: 2000 qualification activities.
• Quality award assessment. Lost due to defects is the failure cost of the product.
This cost includes following components. 3. 5. 3 Failure Cost.
• Cost of troubleshooting
• Re inspection of stocks after defect detection
• Disruption of production schedules
• Complaint handling a replacements plus extra time with customer
• Cost of holding higher levels of stock as a buffer against quality failure
• Cost of corrective maintenance of plant
• Cost of corrective action to product ( redesign, repair)
• Lost of production because of manpower availability problems (this results in higher over time)
• Lost of production caused by system problems (materials or instructions not available, idle time cost)
• Process waste Cost of product scrap ( including holding cost) 3. 6 CHARACTERISTICS OF TQM Total quality approach has the following characteristic:
• Strategically based
• Customer focus ( internal & external)
• Obsession with quality
• Scientific approach to problem solving
• Long term commitment
• Continual process improvement
• Education & training
• Freedom through control
• Unity of purpose
• Employees involvement and empowerment 3. 6. 1 DEMINGS 14 Points: Deming’s philosophy both summarized and operational zed by his fourteen points. These points describe his views on what a company must do to effect a positive transition from traditional business to TQM. DEMINGS 14 Points: 1.
Create constancy of Purpose toward the improvement of products and services in order to become competitive, stay in business and provide jobs. 2. Adopt the new philosophy. Management must learn that it is a new economic age and awaken to the challenge, learn their responsibilities and take on leadership for change. 3. Stop depending on inspection to achieve quality. Build in quality from the start. 4. Stop awarding contracts on the basis of low bids. 5. Improve continuously and forever the system of production and service, To improve quality and productivity, and this continuously reduces cost. 6. Institute training on the job. 7. Institute leadership.
The purpose of leadership to help people and technology work better. 8. Drive out fear so that everyone works effectively. 9. Breakdown barriers between departments so that people can work as a team. 10. Eliminate slogans, exhortations, and targets for the workforce they create adversarial relationship. 11. Eliminate quotas and management by objective. Substitute leadership. 12. Remove barriers that rob employees of their pride in workmanship. 13. Institute vigorous program for education and self improvement. 14. Make the transformation everyone’s job and put everyone work on it. Dr. Deming also pointed seven deadly diseases that inhibit the transformation an organization.
Demings Seven deadly diseases 1. Lack of constancy of purpose to plan products and services that have sufficient to keep the company in business. 2. Emphasis on short time profits. 3. Personal review systems for managers and management by objectives without providing methods or resources to accomplish objectives. 4. Job hopping by managers 5. Using only visible data and information in decision making with little no consideration given to what is not known or cannot be known. 6. Excessive medical costs 7. Excessive cost of warranty. 3. 6. 2 Juran’s Philosophy: Jcsph M. Juran ranks near Deming in contribution he has made in quality, Movement.
His Ten steps to quality improvement are given below: I. Build awareness of the need for improvement and opportunities for improvement. II. Set goals for improvement. III. Organize to meet the goals that have been set. IV. Provide training. V. Implement projects aimed at solving problems. VI. Report progress. VII. Give recognition. VIII. Communicate results. 1X. Keep score X. Maintain momentum by building improvement into the company’s regular system. 3. 6. 3 Common Errors: There are score common errors organizations make when implementing total the committed organization should avoid these errors.
• Lack of commitment from top management Senior management delegation and poor leadership
• Team Mania
• Deployment process: some organizations develop quality initiatives without concurrently developing plans for integrating them into all elements of the organization. According to Jim Clemmer ” More time must be spent preparing plans and getting key stakeholders on board, including managers, unions, suppliers, and other production people. It takes time to pull them in. It involves thinking about structure, Recognition, skill development, education and awareness”
• Taking narrow, dogmatic approach
• Confusion about the difference among education, awareness, Inspiration and skill building. 3. 7 What is quality control?
Quality control is the more traditional way that businesses have used to manage quality. Quality control is concerned with checking and reviewing work that has been done. But is this the best way for a business to manage quality? Under traditional quality control, inspection of products and services (checking to make sure that what’s being produced is meeting the required standard) takes place during and at the end of the operations process. There are three main points during the production process when inspection is performed: |1. |When raw materials are received prior to entering production | |2. Whilst products are going through the production process | |3. |When products are finished – inspection or testing takes place before products are dispatched to customers | The problem with this sort of inspection is that it doesn’t work very well! There are several problems with inspection under traditional quality control: |1. |The inspection process does not add any “value”. If there were any guarantees that no defective output would be produced, | | |then there would be no need for an inspection process in the first place! | |2. |Inspection is costly, in terms of both tangible and intangible costs.
For example, materials, labour, time, employee | | |morale, customer goodwill, lost sales | |3. |It is sometimes done too late in the production process. This often results in defective or non-acceptable goods actually | | |being received by the customer | |4. |It is usually done by the wrong people – e. g. by a separate “quality control inspection team” rather than by the workers | | |themselves | |5. |Inspection is often not compatible with more modern production techniques (e. g. “Just in Time Manufacturing”) which do not| | |allow time for much (if any) inspection. | |6. Working capital is tied up in stocks which cannot be sold | |7. |There is often disagreement as to what constitutes a “quality product”. For example, to meet quotas, inspectors may | | |approve goods that don’t meet 100% conformance, giving the message to workers that it doesn’t matter if their work is a | | |bit sloppy. Or one quality control inspector may follow different procedures from another, or use different measurements. | As a result of the above problems, many businesses have focused their efforts on improving quality by implementing quality management techniques – which emphasize the role of quality assurance.
As Deming (a “quality guru”) wrote: “Inspection with the aim of finding the bad ones and throwing them out is too late, ineffective, costly. Quality comes not from inspection but from improvement of the process. ” 3. 7. 1The quality control charts: For controlling quality characteristics that represent attributes the product, the following charts are commonly constructed: C chart In this chart we plot the number of defects (per batch, per day, per machine, per 100 feet of pipe, etc. ). This chart assumes that defects of the quality attribute are rare and the control limits in this chart are computed based on the Poisson distribution (distribution of rare events). U chart
In this chart we plot the rate of defects that is, the number of defectives divided by the number of units inspected (the n; e. g. , feet of pipe, number of batches). Unlike the C chart, this chart does not require a constant number of units, and it can be used, for example, when the batches (samples) are of different sizes. Np chart In this chart, we plot the number of defectives (per batch, per day, per machine) as in the C chart. However, the control limits in this chart are not based on the distribution of rare events, but rather on the binomial distribution. Therefore, this chart should be used if the occurrence of defectives is not rare (e. g. , they occur in more than 5% of the units inspected).
For example, we may use this chart to control the number of units produced with minor flaws. P chart In this chart, we plot the percent of defectives (per batch, per day, per machine, etc. ) as in the U chart. However, the control limits in this chart are not based on the distribution of rare events but rather on the binomial distribution (of proportions). Therefore, this chart is most applicable to situations where the occurrence of defectives is not rare (e. g. , we expect the percent of defectives to be more than 5% of the total number of units produced). C H A P T E R F O U R 4. 1 WHAT IS HUMAN RESOURCE MANAGEMENT? There are four functional areas of management that any business must concern it with.
These are Production Management, Marketing Management, Financial Management, and Human Resource Management. HR Management in a design firm has three primary functions: acquiring human resources, developing human resources, and maintaining human resources- in other words, staff recruitment, retention, and development. A fourth function has recently been added to these: minimization of employment-related liability issues. Liability issues are becoming a greater and greater concern to design firms, as all management activities today have potential liability implications. 4. 1. 1 GOOD HUMAN RESOURCE MANAGEMENT IS GOOD BUSINESS There’s better way to sell managers on a new ides than to appeal to them, rationally and economically.
Although it’s not always possible to justify what you propose economically, it could probably be done far more often than often than most people realize. And there realty are some tangible economic benefits to effective HR management in a garments company. Those economic benefits fall into one of two categories- indirect benefits and immediate benefits. Indirect benefits to the company arise from not being punished for some misdeed. These misdeeds and their penalties including firing someone for the wrong reasons, then getting slapped with a lawsuit; violating the fair Labor Standards Act damages judgment; or having one of your managers make unwelcome sexual advances to an employee, thus getting the stuck with a million- dollar sexual harassment suit.
Good HR management provides tangible economic benefits to the firm by minimizing the likelihood of these events. 4. 2 HERE ARE SOME MORE JUSTIFICATIONS FOR GOOD HR MANAGEMENT 1. Between 1986 and 1988 JURY verdicts in wrongful discharge cases averaged. 2. Design firms are in the business of selling labor and are therefore only as good as their people. 3. About 15 percent of the women in U. S. companies say they’ve been sexually harassed on the job in the past year. 4. The competition for experienced staff has never been greater than was in the 1980s, and it will undoubtedly get worse in the 1990s. 5. About 115 percent of workers age 51 and older in Fortune 500Companies say they’ve been discriminated against because of age. 6.
Health benefit costs are skyrocketing, with some firm’s premiums Increasing by 50 percent to 100 percent per year. 7. Half of the companies’ worker fires anyone for any reason at all are sued. 8. Low inflation is resulting in sampler raise budgets typically 5 to 7percent than firms may have had in previous years. 9. Technical skills alone won’t cut it any more. Client and liability considerations dictate that technical staffers must have good communi- cation skills. It should be apparent by now that good HR management saves both and makes money! 4. 3 SOME STATISTICS The next step in the process is to set some very specific goals for HR management efforts.
This is tough for many firms because, in most cases, they don’t have any historical data to use as benchmarks for how they are currently doing. As a bare minimum, performance statistics should be maintained in each of the following areas: 4. 3. 1 TURNOVER New often each position in the firm, branch, department, or job category is filled with someone new over the course of the time period specified. Performance statistics