Appendix 1

Survey Report on Quality Management Systems

In Indian Companies

Contents
INTRODUCTION_________________________________________________________________________ A-1
OBJECTIVES ___________________________________________________________________________ A-2
QUESTIONNAIRE PREPARATION ____________________________________________________________ A-3
ANALYSIS OF SURVEY RESULTS _____________________________________________________________ A-4
GENERAL INFORMATION _________________________________________________________________ A-4
Overview of Organization Characters _____________________________________________ A-4
Information Regarding Quality System _____________________________________________ A-6
Management Responsibility - Commitment ________________________________________ A-7
Management Responsibility-Customer Satisfaction _________________________________ A-8
Management Responsibility-Quality Policy _________________________________________ A-9
Management Responsibility - Planning____________________________________________ A-10
Management responsibility: Responsibility, Authority and Communication _________ A-11
RESOURCE M ANAGEMENT_______________________________________________________________ A-12
PRODUCT REALIZATION _________________________________________________________________ A-14
Purchasing ______________________________________________________________________ A-15
MEASUREMENT ANALYSIS AND IMPROVEMENT _______________________________________________ A-17
QUALITY RESULTS AND SATISFACTION WITH RESULTS ____________________________________________ A-19
Quality Results ___________________________________________________________________ A-19
Satisfaction with Quality Improvement Results _____________________________________ A-20
Employee Satisfaction/ Work Environment ________________________________________ A-22
SUMMARY AND RESULTS _________________________________________________________________ A-24
CONCLUSION ________________________________________________________________________ A-26
REFERENCES __________________________________________________________________________ A-27

LIST OF FIGURES
Figure A. 1 Classification of survey by respondents .........................................................................A-4
Figure A. 2 Organization characteristics ............................................................................................A-5
Figure A. 3 Information regarding quality system ............................................................................A-6
Figure A. 4 Overall performance - quality management system .................................................A-6
Figure A. 5 Requirement management responsibility- commitment ...........................................A-1
Figure A. 6 Overall management responsibility- commitment.....................................................A-8
Figure A. 7 Requirement management responsibility-customer satisfaction .............................A-1
Figure A. 9 Requirement management responsibility - quality policy..........................................A-9
Figure A. 8 Overall requirement management responsibility-customer satisfaction ................A-1
Figure A. 10 Overall management responsibility-quality policy ..................................................A-10
Figure A. 11 Requirement management responsibility quality planning..................................A-1
Figure A. 12 Overall requirement management responsibility quality planning...................A-11
Figure A. 13 Requirement management responsibility - authority and communication .......A-11
Figure A. 14 Overall management responsibility authority and communication....................A-12
Figure A. 15 Resource management................................................................................................A-13
Figure A. 16 Overall resource management.....................................................................................A-1
Figure A. 17 Product realization .........................................................................................................A-14
Figure A. 18 Overall product realization...........................................................................................A-15
Figure A. 19 Purchasing .......................................................................................................................A-15
Figure A. 20 Overall purchasing ...........................................................................................................A-1
Figure A. 21 Measurement analysis and improvement.................................................................A-17
Figure A. 22 Overall measurement analysis and improvement...................................................A-17
Figure A. 23 Overall quality results .......................................................................................................A-1
Figure A. 24 Satisfaction with quality improvement efforts.............................................................A-1
Figure A. 25 Overall satisfaction with quality improvement efforts ...............................................A-1
Figure A. 26 Overall employee satisfaction / work environment ..................................................A-1

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Appendix 1

Introduction
This study is carried out to improve understanding of Indian organizations, with main criteria
as ISO 9001:2000 quality system requirements. Similar studies such as [5] among the
Indian companies provided some understanding that shows that majority of Indian
manufacturers are improving quality management practices focusing on customer satisfaction
and treating customer complaints with top priority.
To put in the perspective, governance in Indian firms is mixture of controlled family
conglomerates to state owned companies [12]. After the markets opened for global
competitiveness in 1991, increasing level of product performance, necessity of reliability, a
standard (effective and efficient) system became requirement to every company in order to
stay in the business. However, there are difference in practices of Indian companies before
and after the start of liberalization in terms of usage of management techniques such as TQM,
TPM, and ISO certification. ISO 9000 series of standards became norm for every company
especially for those who are export oriented. The transformation in Indian Industry in
implementation of management techniques makes it clear the capability of adopting Japanese
management practices improve productivity and quality [10]. For example, Sundram Fastners
has won the award for best supplier to GM for number of years in succession.
The main intention of reforms1 is to inject the desired level of technological
dynamism in Indian industry and develop indigenous competence for the efficient
absorption of foreign technology. [21]. In addition, it hoped for the competitive pressure
will also induce industry to invest much more in R&D. This wish was realized to some extent
with first indigenous car made by TATA in 1998 with the name INDICA 2[22]. Government
continued its help to industries to adopt successful techniques to increase competence of
Indian industries. For example, in quest for successful management techniques,
Confederation of Indian Industry (CII) hired DR Shoji Shiba, Japanese Quality expert to
guide the selected Indian CEOs of successful Indian companies that have core competencies
in TQM to lead the companies in achieving Break through management [16].
Altogether, research regarding Indian industry indicates, organizations are making
good progress. Mainly medium and large industries are able to adopt new technology,
innovation, and modern management techniques, which are necessary for survival. However,
there is still ambiguity about how wide spread and sustainable these practices are. In this
scenario, it is necessary and is of great value to know how Indian companies are doing
1 Industrial policy of Government of India of July 24, 1991
2 A small car for budget-oriented people

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Appendix 1

specially those companies that are having collaborations and doing business with other
countries. This group of companies is expected to be active in embracing new technology,
modern management techniques, and use standard systems for managing company activities.
With this study successfully completed, the results will help Indian companies who want to
do business with other countries (or) collaborate with companies of developed countries. In
addition, helps to evaluate how far these Indian companies successfully adapted standard
systems and to enable them compare with practices of companies from developed countries.
Objectives
The prime objective of doing this survey are to gain understanding of QMS in Indian
companies, which are having formal quality management system, secondary objectives are:
1. To collect data regarding activities Indian organizations are not able to
practice with great success
2. To enable to compare Indian organizations practices with German companies.

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Appendix 1

Questionnaire Preparation
Most of the questions in the questionnaire [Appendix 4] are prepared using ISO 9001:2000
quality management system requirements manual, some general questions taken from similar
surveys conducted on TQM and related literature.
The questionnaire consists of multiple-choice questions asking for a single or multiple
answers. In addition, at the end of each section space was provided for additional comments,
which can be used to give much needed insight about the section, or communicate important
information.
Survey questionnaire consists of mainly three parts:
Part 1: General information about the organization
Part 2: Information regarding quality system
Part 3: Quality results and satisfaction with results
We expected it to take approximately 8 to 10 min to for completion of each part in
this survey. All companies are randomly selected from Directory of German Companies in
India - I, Collaborations, Joint Ventures, Subsidiaries, 12th Edition published by IndoGerman Chamber of Commerce. Letters are sent to Indian companies asking to fill the
questionnaire directly or online at www.bireddy.com/survey.htm giving approximately four
to six weeks time.
This survey is based mainly on manufacturing Industries; all the companies small,
medium and large-scale companies participated in this survey are having their main business
activity as manufacturing.

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Appendix 1

Analysis of Survey Results

Total number of companies participated in the survey are 32, out of which 53% are medium
scale companies (100 to 1000 employees), 38% are small companies (less than 100
employees) and 6.3% large scale or big companies with (more than 1000 Employees). This
survey is based mainly on manufacturing Industries; all the companies small, medium and
large-scale companies participated in this survey are having their main business activity as
manufacturing
Figure A.1 shows the classification of survey respondents according to their job positions.
This indicates responses to the survey came from senior managers and from the higher level
managers in the corporate activity. Thus the results obtained can be considered to be valid
and present high degree of accuracy in presenting respective organisational practices.
The participants who has given reply for the survey are

10

Managing Director
7

Manager(other)
Vice President

General Manager

Manager Quality Assurance

Figure A. 1 Classification of survey by respondents

General Information
Overview of Organization Characters
Indian work environment is changing rapidly since last decade due to globalization and
embracement of management techniques such as TQM and continuous quality philosophy.
When organizations are questioned about the type of work environment, majority of them
(40%) are having dynamic and entrepreneurial environment where people are willing to take
risks; in addition, the remaining (28%) organizations are like very personal place. The
behavior of managers in the organizations is not consistent; there is no particular behavior
common among the managers. However, many managers tend to act as coordinators and
coaches, helping employees to meet the organizations goals and objectives.
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Appendix 1

Cohesion works with managers and employees to improve the organization by focusing on
strategies that improve workers both short term and long term. Cohesion helps companies to
cultivate workplaces that assist people to do their best and have the company prosper in the
process. There is no single common binding principle among the organizations, which said to
be the reason for cohesion. However, commitment to innovation and development, emphasis
on tasks and goal accomplishment are principles uniting the organizations. In general,
organizations emphasize mainly on competitive actions and achievements. This indicates
measurable goals are very important to Indian organizations. Second most important aspect
for organizations is growth and acquiring of new resources, readiness to meet new
challenges is always important.
Individual initiatives (37.5%) and achievement of objectives (34.3%) are the most
preferred criteria for organizations to reward their employees. In other terms, organizations
prefer to recognize employees whose innovative ideas and actions immensely benefit
organization. Moreover, individuals who provide leadership and contribute to attaining the
organizations goals are also rewarded. The objective of customer-orientated business is to
meet the needs of customers, internal or external. Majority of the organizations practice
customer oriented quality philosophy, with this organizations focus explicitly on
customers-both external and internal. In addition, 90% of organizations (Figure A. 2) have
measurable goals related to customer satisfaction.
Leading companies in the world, follow continuous quality philosophy. Indian
organizations are very much aware of this philosophy. Results from the present study indicate
90% of organizations use this philosophy. However, only 63% regularly use this philosophy
for continuous improvement of organizational processes. For this purpose, nearly 24% of the

Figure A. 2 Organization characteristics

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Appendix 1

companies regularly use cross-functional quality improvement teams; in addition, 62% use
cross-functional quality improvement teams for introducing improvements. Workers
participation in decision-making processes is a part of empowerment in the workplace.
Empowerment involves decentralizing power within the organization to individual decision
makers. Results from study (Figure A. 2) show only 50% of organizations have such a policy
in their organization.
Information Regarding Quality System
In general, the quality management system of the companies participated in the survey, found
to be very good (Figure A.4).

Figure A. 3 Information regarding quality system

Even though only 62.5% of them are certified (Figure A. 2), 73% of them strongly
agree to have established and maintaining a quality manual with strong control of
documentation at all levels. Majority (69%) of them strongly agree to have systems in place
to perform internal audits on quality system from time to time to validate the system.

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

21

Figure A. 4 Overall performance - quality management system

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Appendix 1

Management Responsibility - Commitment

To satisfy customer, management commitment should be the force for establishing,
implementing, maintaining, and improving the quality management system. The first duty of
management is to communicate the organization the importance of meeting customer as well
as regulatory requirements; establish a quality policy and objectives; conduct management
reviews; and ensure the availability of resources.
Results from the study showed that majority 63% of the organizations have exhibited
commitment in establishing suitable quality policy and quality objectives. In addition, 62% of
them strongly agree to the fact that management ensures the availability of resources to
achieve objectives. However, the regular review of suitability of quality policies and
objectives takes place only in 33% of organizations, in the remaining 43% organizations
review takes place, but do not seems to be completely satisfied.

Figure A. 5 Requirement management responsibility- commitment

It is apparent from the survey that, majority (60%) of the organizations management
behavior is consistent with the organizations values relevant to quality and CQI. However,
only 43% shown strong commitment in articulating organizations values relevant to quality
and continuous quality improvement. In addition, strong commitment to act on suggestions
and generating confidence among the employees that efforts to improve quality will succeed
can be seen only in 50% of organizations.

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Appendix 1

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

total

Figure A. 6 Overall management responsibility- commitment

Majority (53.3%) of organizations

have management strongly committed in

establishing strong quality policy and quality objectives, providing resources to achieve
objectives, making changes needed to improve the quality, (Figure A. 6). However, majority
organizations should commit more to reviewing the suitability of quality policies and
objectives and articulating values relevant to quality and continuous quality improvement.
Management Responsibility-Customer Satisfaction
Management responsibility towards customer should ensure that customer requirements are
determined and met with the aim of improving satisfaction. Results indicate majority of
organizations (Figure A.7) need improvements (52%) in assessing customer needs and
expectations; however, 38% of organizations are able to do good work in this regard.
Customer complaints are studied systematically in majority (52%) organizations to identify
patterns and prevent from recurring. Strong practice collection of customer data to improve
services is seen only in 43% of organizations, where as only in 36% organizations
systematically use data on expectations and satisfaction in developing new products.

Figure A. 7 Requirement management responsibility-customer satisfaction

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Appendix 1

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

Figure A. 8 Overall requirement management responsibility-customer satisfaction

Considering all the activities necessary for establishing system to satisfy customer
(Figure A. 8), data suggests about 40% of the organizations are systematically doing all the
activities. Nevertheless, majority of organizations needs to improve their efforts in using
data on customer in designing new services and products and assessing customer needs and
expectations in order to realize customer satisfaction.
Management Responsibility-Quality Policy
Management should ensure that the quality policy is appropriate to the organization; commits
to continuous improvement and is communicated and understood within the organization.
Activities related to quality policy such as establishing proper quality policy, reviewing it
periodically are performed well in Indian organizations.

Figure A. 9 Requirement management responsibility - quality policy

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Appendix 1

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

total

Figure A. 10 Overall management responsibility-quality policy

Results indicate (Figure A. 10), 56% organizations are systematically doing all the
activities. However, improvements in organizational efforts are necessary in communicating
policy so that it is well understood and reviewing periodically for continuing suitability.
Management Responsibility - Planning
Planning should ensure measurable quality objectives consistent with quality policy
established at all functions and levels within the organization. Data from survey indicates
only 33% of organizations have strongly established measurable quality objectives for all
functions. Majority of organizations (55%) are performing well in documenting procedures
for key activities. In contrast, only 31% organizations are doing exceedingly well in
identifying and allocating, resources and activities needed to achieve quality objectives.
Study (Figure A.12), indicates only 37% of the organizations are systematically doing
planning activities. It shows efforts are necessary in improving organizations ability in
establishing measurable quality objectives for all functions and levels and identifying and
allocating, resources and activities needed to achieve quality objectives.

Figure A. 11 Requirement management responsibility quality planning

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Appendix 1

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

total

Figure A. 12 Overall requirement management responsibility quality planning

Management responsibility: Responsibility, Authority and Communication

Management should ensure that responsibilities and authorities are defined and
communicated within the organization. In addition, appropriate communication processes
should be established for effectiveness of the quality management system.
According to study, in 44% of the organizations, responsibilities and authorities are
clearly defined and communicated; remaining organizations needs improvements in this
regard. About 41% surveyed organizations have been active in working for establishment,
implementation and maintenance of quality management system through the appointment of
key management personal; however, 41% of organizations do agree to have responsible
management personal yet to reach complete satisfaction with the appointment.

Figure A. 13 Requirement management responsibility - authority and communication

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Appendix 1

Strongly Practice
Practice with out complete
commitment
Rarely /Not at all Practice
0

6 total 9

12

15

Figure A. 14 Overall management responsibility authority and communication

From the study, it can be said that only 37% of organizations have complete
awareness of customer requirements throughout the organization. In addition, only 27% of
organizations strongly agree to have a very good communication system for an effective
QMS.
Considering activities needed for establishing responsibility, authority, and
communication systems (Figure A.14), results indicate altogether only 43% organizations are
successful. However, majority of organizations needs improvements, especially in
establishing proper communication process and developing awareness of customer
requirements.
Resource Management
Organizations should plan and manage all required resources, such as human resources,
facilities, equipment, and work environment. Additionally, appropriate resources are to be
identified, planned, made available, used, monitored, and changed as per necessities. Data
from the study suggests only 41% of organizations able to provide and maintain
infrastructure necessary to assure product /service quality. However, 48% of organizations
are not lagging far behind in doing so.
Human resources are most neglected part of managing resources, as we can see
from this study, only 23% organizations provide the necessary education and training to staff
for identifying and acting on quality improvement opportunities. Altogether (Figure: A.16)
only 23.3% of the organizations are having the suitable system to perform activities for
managing resources.

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Appendix 1

Figure A. 15 Resource management

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

total

Figure A. 16 Overall resource management

Results clearly indicates that management of Indian organizations should give

immediate consideration human resources, education and training in how to identify and act
on quality improvement opportunities, training in statistical and other quantitative methods
and education and training to improve job skills and performance.

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Appendix 1

Product Realization
Organizations are required to plan and develop all the processes needed for product
realization. Planning of should be consistent with the requirements of the other processes of
the quality management system. Majority (63%) of the organizations have clearly defined
quality objectives and requirements of every product they produce. Before defining product
for manufacturing 46% of the organizations collect clear and specific information from the
customer; however, 39% organizations work needs improvement. Data indicates 47% of
organizations have established, documented product specific process; however, remaining
43% organizations working on it has not reached the desired performance level.

Figure A. 17 Product realization

Reviewing the organization capacity to ensure the delivery of defined product/service

is done only in 40% organizations; but remaining 47% of organizations are working to
achieve the desired satisfaction level. An effective communication system is there only in
35% of organizations to handle the customer for providing product information, handling
enquires.
Considering all activities, study found (Figure: A.18) only 46.6% of organizations are
having the suitable system needed for product realization. Results clearly indicate majority of
Indian organizations need to work on developing communication system for effective

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Appendix 1

communication with customers and review the organization capacity to ensure the ability to
deliver product.

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

total

Figure A. 18 Overall product realization

Purchasing
Organizations procurement policy should ensure that purchased product conforms to
requirements to evaluate and select suppliers based on their ability to supply product in
accordance with the organizations requirements.

Figure A. 19 Purchasing

Selection of suppliers that provide materials and services is done mainly through
established and documented criteria. Results show only 35% organizations follow such a
supplier evaluation procedure while majority of 48% yet to follow evaluation procedure
successfully. Involving suppliers is critical to improve products performance, for this purpose
48% organizations work closely with suppliers to improve the quality of their products and
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Appendix 1

services. However, 41% of organizations are working towards developing relationships with
suppliers to improve the quality.
Most of the Indian organizations (45%) are active and have standard system for monitoring
the suppliers performance so that quality of the final product will bear no ill effects with
time, but significant number (41%) of organizations have a system for monitoring the
suppliers performance which is yet to reach desired performance level. While developing
new products only 31% of organizations involve suppliers to inform them about the new
products and collect innovative ideas for maintaining lasting relationship.

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

total

Figure A. 20 Overall purchasing

Considering activities needed for supplier management in organization (Figure A.20)

only 45% organizations are systematically doing all such activities. However, results clearly
indicate that organizations need improvements in particular, in involving suppliers while
developing new products and evaluating supplier.

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Appendix 1

Measurement Analysis and Improvement

Organization is required to implement monitoring, measurement, analysis, and improvement
processes to demonstrate conformity of the product, to ensure conformity of the quality
management system and to continually improve the effectiveness of the quality management
system. In this process, organizations should use all applicable methods, including statistical

techniques where necessary.

Figure A. 21 Measurement analysis and improvement

Organizations participated in the study are customer oriented and have measurable
objectives related to customer satisfaction. Study indicates customer satisfaction is monitored
regularly in only 52% of organizations to know whether organization actually meet customer
expectations. In addition, products are checked and monitored carefully in 48% of
organizations to ensure the customers gets defect free products.

Strongly Practice
Practice with out complete commitment
Rarely /Not at all Practice
0

12

15

18

21

Figure A. 22 Overall measurement analysis and improvement

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Appendix 1

As found in any modern organizations, 45% of organizations have standard system in place
to take action and eliminate the cause of non-conformities, and prevent their reoccurrence. In
addition, 45% of the organizations strongly agree to have system to eliminate potential cause
of non-conformities in order to prevent occurrence. The use of statistical tools to monitor and
measure product and process is very poor, as the study found only 17% of organizations
strongly use the statistical tool to monitor product and process and in about 48% of
organizations using statistical tools their application is limited. Further, only 17 % of
organizations actively works and analyze the appropriate data to demonstrate the suitability
and effectiveness of QMS.
Considering activities needed to carryout measurement analysis and improvement,
study (Figure A.22) found that only 16.6% organizations systematically doing all such
activities. Results clearly indicate, substantial organizational efforts needed in continuous
improvement activities such as use of statistical tools to monitor and measure product and
process and analyzing the appropriate data to demonstrate the suitability and effectiveness
of QMS.

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Appendix 1

Quality Results and Satisfaction with Results

Quality Results
Quality results are organization`s achievements with their efforts for success, growth and
well-being of all the employees. Three factors are considered for evaluating quality results
(or) success of an organization

Success in simplifying how products and services are provided.

Increase in quality of products and services.

Measurable cost reductions without compromising on quality of the product/service

they provide

Very Strong Quality Results

Good Quality Results
Poor Quality Results
0

12

15

total

Figure A. 23 Overall quality results

Organizations are working hard to achieve good quality results, it is evident from this
study that about only 28% of organizations very successful in simplifying how products and
services are provided with about 49% of organizations are not lagging behind in doing it with
complete satisfaction.
From the past few years, quality of products and services of the organizations have
grown steadily, over 47% of organizations strongly agree to have definite measurable
improvements in the quality of their products and services. In addition, 37% of organizations
see improvements in quality of products, but are still not convinced with results. Majority of
organizations achieved measurable cost reductions; however only 43% of organizations
strong results in this regard. In addition, 37% of organizations could see reduction in cost but
are not completely satisfied with their performance.
Interestingly over all, quality results of the organizations are relatively good, (Figure
A.23) with 43.3 % of organizations are doing very well and are having excellent quality
related results. In contrast, 36.6% of organizations are not completely satisfied with their
results and think they should have achieved more.
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Appendix 1

Satisfaction with Quality Improvement Results

As we can see from results (Figure A. 24), only 43.3 % of companies are having excellent
quality related results. These results depict majority organizations needs additional efforts for
increasing efficiency and effectiveness of their processes. Study indicates organizations
realized the needs for extra efforts with only 23% of companies are completely satisfied with
their efforts to improve quality.
Management understanding of quality in Indian organizations is good. Importantly,
about 53% of companies believe their management has good understanding of quality, and
43% of organizations should put efforts and improve their understanding of quality.
Sixty three percent of organizations strongly follow the principles of continuous
improvement of quality; however, commitment to continuous improvement of quality exists
only in 56% of companies. From the results (Figure A. 24), it is known only 23% of
organizations providing necessary education and training; similar result is reflected in their
satisfaction level of training provided. Result shows only 23% of organizations believe they
are providing excellent training and completely satisfied. However, the majority of the
companies (66%) believe quality of the training provided to employees is not sufficient and
certainly, improvement is essential.

Figure A. 24 Satisfaction with quality improvement efforts

Altogether, 27% organizations have proper communication system, which also

reflected in the overall ability to communicate about quality in the organization. In contrast,

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Appendix 1

only 33% of companies are completely satisfied with their ability to communicate the quality
across the organization; and majority (60%) thinks that improvement is necessary.
One can say that if employees are active in giving suggestions, they are willing to see
company succeed. However, only 33% of organizations report their employees are active in
giving suggestions for improvement of quality. In addition to, the majority of (56%)
organizations are not completely satisfied with the level of employee participation in giving
suggestions and sees scope for improvement. Only 30% of companies are completely
satisfied with their ability to use resources effectively but the majority of (70%) organizations
report there is not completely satisfied and believes to work hard for effective utilization of
resources.
Regarding overall performance of the organizations (Figure A. 24), only 33%
companies are completely satisfied with their performance and have good growth prospects
through happy customer and satisfied employee. However, majority (60%) have their
position not completely secured. They are required to invest their efforts towards achieving
customer satisfaction, employee satisfaction, improve long terms growth prospects and
profitability.

Completely Satisfied
Somewhat satisfied
Not at all Satisfied
0

9 total 12

15

18

21

Figure A. 25 Overall satisfaction with quality improvement efforts

In this present study, considering many aspects stated below which are
necessary for good quality management, Efforts to improve quality

Board understanding of quality

Board commitment to continuous improvement of quality

Quality of training provided

Ability to communicate the quality across the organization

Level of employee participation in giving suggestions for improvement of

quality

Effective utilization of resources

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Appendix 1

long-term growth prospects, customer satisfaction, employee satisfaction and

profitability

Study clearly illustrate (Figure: A.25) only 27% organizations are completely
satisfied in terms of quality improvement efforts. However, majority of (63%) organizations
are merely satisfied and there is considerable work to be done to get desired quality
improvement results.
Employee Satisfaction/ Work Environment
Generally it is believed that opportunities for employees to use skills is quite good in Indian
organizations, with majority 57% of companies are completely satisfied with opportunities
employees are having to use skills and abilities better and about 43% of the companies say
that there is room for improvement. Indian companies not only provide opportunities for
employees to use their skills but also recognize the employees contribution in the success of
the company. In this regard majority (53%) of companies are satisfied with their management
culture of recognizing (praise, promotion) employees for their achievements and for 43%
organizations there is still work to be done in encouraging employees by recognizing their
achievements in proper way. Majority of managers (63%) participated in the survey are
completely satisfied with the feeling of accomplishing something worth in the company.
However, one has to interpret this carefully as the managers are those who are having the
authority to do things; one cannot say the same is true for all the employees in the company.
Process changes are common in any organization, but there exist always some
difficulty to transfer the good optimized process to other departments or other parts of
organization. The ability to spread process changes to other parts of the organization, which
took part in the survey, is good; however, only 43% of organizations completely satisfied
with their ability to spread process changes, and about 47% organizations saying there is
definitely room for improvement in their organizations ability to undertake necessary
changes. Gaining support for process changes is very important for improving the efficiency
and introducing new technology. It was found that only 37% of the organizations are satisfied
with the support they are getting for process changes and about 60% of the organizations are
not completely satisfied with support they are getting for process changes and sees room for
improvement.
There is need for organizations to see workforce is motivated. This reveals health of
organization and discloses how many are willing to work hard for the organization. From the
survey it is evident that only 57% of those participated in the survey showed, completely

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Appendix 1

motivated to see company succeed and about 43% are happy to see company succeed but
seems to be less motivated than others.
Considering all the objectives of work environment / employee satisfaction such as

Opportunities for employees to use skills

Getting recognized for their work

Satisfaction with the feeling of accomplishing in the company

Ability to spread process changes to other parts of the organization

Gaining support for process changes

Motivated to see the company succeed

Having exciting work environment

Completely Satisfied
Some what satisfied
Not at all Satisfied
0

12

15

18

total

Figure A. 26 Overall employee satisfaction / work environment

Results (Figure: A.26) obtained from the study revealed, majority of (53%)
companies are completely satisfied with present situation having conductive work
environment with satisfied workforce.

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Appendix 1

Summary and Results

The study "Quality management in manufacturing enterprises in India" says: organizations in
India are working towards implementing and operating a determined quality management
system.
Though organizations are embracing modern systems, however majority of them are
yet to successfully implement and achieve success Our study shows almost all the companies
(90%) are pursuing excellence through philosophy of continuous improvement and customer
orientation. For this purpose, 83% of the companies use cross-functional quality
improvement teams in introducing improvements in organizational processes. In addition,
nearly 75% organizations have their quality systems certified. In general, the quality
management system of the companies participated in this survey found to be very good, with
73% of them systematically established and maintaining a quality manual with strong control
of documentation at all levels.
Over all management commitment in the organizations participated in this survey is
good with majority of (53.3%) organizations are having management strongly committed in
establishing strong quality policy, quality objectives and communicating them to
organization. Even though customer satisfaction was given high priority, observations
revealed only 47% of the organizations are systematically doing all the activities such as
assessing customer needs and expectations, studying customer complaints, collecting data
from customers and use data on customer expectations and / or satisfaction in designing new
services and products.
The performance of activities related to quality planning is not encouraging; only 37%
of organizations are performing all the activities such as establishment of measurable quality
objectives, documenting procedures for key activities identifying and allocating resources
and activities needed to achieve quality objectives to complete satisfaction.
Communication system is
essential for effective and efficient running of any organization. Results from this study
showed, good communication system prevails only in few organizations; only 27% of
organizations have established a very good communication system and 57% of organizations
should improve in their communication system, necessary for effective implementation of
QMS. Performance of the activities related to resource management in Indian organizations is
not good. This study found only 23.3% of the organizations doing excellent resource
management activities. These activities include allocation of sufficient resources for

A-24

QM Survey

Appendix 1

implementing, maintaining and improving QMS providing education and training the staff
and infrastructure to achieve conformity to product requirement. In addition, majority
(56.6%) of organizations have to improve resource management activities in realizing
organizational goals.
Activities related to purchasing such as, evaluation of supplier, and working with
suppliers to improve the quality and developing new products are being performed very well
by Indian organizations. This study found, about 45% of organizations are having the
excellent system while the remaining 45% of organizations agree to be working on the
criteria to perform all the related activities. Indian organizations are conscious about
customer satisfaction, majority (52%), collect information about customer satisfaction to
know whether organization actually meet customer requirements. In addition, products are
checked and monitored carefully to avoid defective products reaching customer. As found in
many modern organizations, study found only 45% of organizations have standard system in
place to take action to eliminate the cause of non-conformities and also to eliminate potential
cause of nonconformities, and the remaining organizations need improvements in this regard.
The use of statistical tools to monitor and measure product and process is very poor;
only 17% of organizations strongly use the statistical tools to monitor product and process
and in 48% of organizations using statistical tools, their application is limited. In addition,
only 17 % of organizations actively work and analyze the appropriate data to demonstrate the
suitability and effectiveness of QMS.
Taken together, quality results of the organizations are reasonably good. From the
study, it was found that 43.3 % of organizations are doing very well and are having excellent
quality related results considering the criteria in simplifying how products and services are
provided to improve quality of products and services, and reduce the costs.
It was clear from the study that only 27% companies are completely satisfied with
their quality improvement efforts and all other activities they are undertaking related to QMS.
Majority (63%) organizations are merely satisfied with their efforts and there is considerable
work still to be done to get desired results.
Conductive work environment is very important to make employees interested in their
job and get desired results. Results obtained from the present study showed, majority of
(53%) companies are completely satisfied with present situation of having conductive work
environment and satisfied workforce. However, about 43% organizations are not completely
satisfied with their work environment and believe there are definitely many necessary
improvements to be made to make work environment more conductive.

A-25

QM Survey

Appendix 1

Conclusion
Quality management systems have been implemented in almost all manufacturing
enterprises in India especially from the beginning of economic liberation with the goal of
supplying products of outstanding quality to the customers and ensure profit for organization.
Internal organizational efforts to achieve good results and profits are worth taking
note; they are working hard on every aspect required for success through customer
satisfaction. Establishing world-class quality management system has been given primary
importance. Even though they are working to achieve their goals with a world class overall
efforts, there remained a considerable gap with the ideal situation compared with good
management systems. Many organizations believe they have to work hard to fill those gaps
and achieve success. In every aspect of QMS, only 50% of organizations have excellent
systems to fulfill all the requirements necessary and about 35% organizations are having
system in place to perform various activities necessary for good QMS, but yet to do with
complete satisfaction. However, gap remains between them and those of world class.
Study indicates altogether 40 % companies are showing excellent performance and
can compete with the best.. In addition, 30 to 40% of companies need to work hard in various
aspects of QMS such as using statistical tools, providing training, and establishing proper
communication system and resource management. Remaining 10 to 20% organizations are
performing poorly in many activities related to QMS. Their management should take
strategic decisions, to establish and perform all the activities needed for having a decent
QMS.
One has to take care when reading the results of this survey as study is based only on
32 organizations, which are into manufacturing at least for part of their business and are
based in India having some sort of collaboration with German companies. Even though
survey sample is not big enough to conclude anything definitely, study provides information
about organizations work with respect to quality in implementing various aspects of QMS.
There is definitely a scope to study further, with larger samples by visiting these companies,
interacting with the employees and find out actual situation on site.

A-26

QM Survey

Appendix 1

References
[1]

Critical success factors of TQM: A select study of Indian organizations AYOOB A.

Wali, S. G. Deshmukh and A. D. Gupta, Production Planning & Control, 2003, Vol.
14, No. 1, 314

[2]

Quality management practices of ISO vs non-ISO companies: A case of Indian

industry
Atul Gupta Lynchburg College, Lynchburg, Virginia, USA, Industrial Management &
Data Systems, Vol 100 Issue 9 Date 2000 ISSN 0263-5577

[3]

[4]

EPW Special Article October 11, 2003, India's Growth Chase High Aspiration, Low
Inspiration by Narendra Jhaveri

[5]

Benchmarking Quality Management Practices in India Sharad K. Maheshwari and

Xiande Zhao, Benchmarking for Quality Management & Technology, Vol. 1 No. 2,
1994, pp. 5-23.

[6]

Manufacturing Excellence and Global Competitiveness Challenges and Opportunities

for Indian Industries, Pankaj Chandra and P R Shukla Paper 123
http://www.decisioncraft.com

[7]

Major Indian ICT Firms and Their Approaches towards Achieving Quality* by
Dilip Dutta & Anna Sekhar, ASARC Working Paper 2004-04

[8]

Practice of manufacturing strategy: Evidence from select Indian automobile

companies

[9]

G. S. Dangayach and S. G. Deshmukh Int. j. prod. res., 2001, vol. 39, no. 11, 23532393

[10]

India's drive to rule the world By Kunal Kumar Kundu, 2004 Asia Times Online Ltd.

[11]

Mr. M.N. Shivaram, Promoting business and technology incubation for improved
competitiveness of small and medium-sized Industries through application of modern
and effective technologies in India, Director, SJCE-Science and Technology
Entrepreneurs Park, Sri Jayachamarajendra College of Engineering, Mysore, India.

[12]

Indias Corporate Culture: A Potential Source of Competitive Advantage, Vishal Jain,

April 6, 2004

[13]

Zipping in the fast lane by V.Jagannanthan 2004

[14]

QM in Indian Companies by Haresh J.Jani 2004

[15]

TVS group: smitten by Deming by V.Jagannathan Jan 2004

[16]

Break through management: Mind over Mantra by V.Jagannathan 2005

[17]

Asias first ISO certified saloon in Chennai by V.Jagannathan Jan 2004

A-27

QM Survey

Appendix 1

[18]

A Minitab Guide to Statistics 2nd Edition by Ruth Meyer, Krueger

[19]

Data construction and Data analysis for survey research by Raymond Kent

[20]

How to Manage, Analyze, and Interpret Survey Data 2nd Edition by Arlene Fink

[21]

http://siadipp.nic.in/publicat/nip0791.htm

[22]

http://www.tata.com/0_about_us/presentation/Tata_Group_presentation_final.pdf

A-28

Appendix 2
Practices of Local oriented Small Scale Industries in India-An Interview
Case study

Contents
INTRODUCTION .......................................................................................................................................A-31
OBJECTIVE .............................................................................................................................................A-33
PRESENTATION OF THE STUDY ...................................................................................................................A-33
SUMMARY OF CASES ..............................................................................................................................A-34
Sri Raghavendhra Painting and Powder Coating Works.....................................................A-34
Phanindhra Micro Tech ..............................................................................................................A-35
Mining Products for Bore Well....................................................................................................A-36
High Vacuum Equipments Manufacturer...............................................................................A-37
Potluri Engineering Industries .....................................................................................................A-39
Annapurna Industries ..................................................................................................................A-40
Tarun Engineering Works ............................................................................................................A-41
SUMMARY ..............................................................................................................................................A-42
CONCLUSION ........................................................................................................................................A-43

Introduction
The SSI Sector plays a vital role in the growth of India, and contributes nearly 40% of the
gross industrial value. It also creates largest employment opportunities, next only to
Agriculture. SSI Sector plays a major role in India's present export performance by
contributing 45%-50% of the Indian exports. However, non-traditional products account for
more than 95% of the SSI exports. Sickness in the small-scale sector is a major concern, and
a large number of SSI units are sick with little scope for improvement. Most of SSI units go
sick due to inefficient management, over-staffing or obsolete production equipment, and
techniques [5]. Sickness in Industrial sector results mainly in wastage of resources, loss of
production and increasing unemployment [1].
There are many inherent weaknesses in the Indian SSI Sector, which can be listed as
follows [2]:

Obsolete Technology
Un-competitive prices
Poor quality
Costly credit
Weak infrastructure backs up like power, roads, communication, etc.
Plethora of labour legislation.
Lack of cohesion among SSI units.
Ineffective Associations.
Lack of information
Lack of international exposure and sensitivity to the implications of the WTO
agreements.
Lack of standards conforming to international standards.

To tackle these weaknesses it is necessary to understand their practices and develop

strategy and action plans to solve them. According to [3] the need of the hour is focused
assistance aimed at improving quality and productivity. Further, should be encouraged as
breeding ground for innovation and technology development where it becomes the
technology sources for larger companies. Concerning the practices adapted by SSIs lot of
information available at Government of India websites pertaining to different statistics
(exports, production, profitability) policies, facilitations. Similar information is also available
from various studies regarding the SSIs practices with respect to infrastructure available,
exports, production in different sectors. In contrast, detail information is not available
regarding the actual day-to-day running of company, quality management practices, and their
understanding of quality concepts. However, it is a known fact that available information
about nature of products, technology available, exports, growth rate, and type of industry
gives to some extent some insight into their management practices. Government being aware

A-31

of practices tried to develop initiatives to promote quality management and to increase

competitiveness in SSIs. One such initiative is a one-time financial incentive scheme in 1994
for encouraging SSIs to acquire ISO-9000 (or its equivalent) certification. Under this scheme,
75 percent of charges for acquiring certification are reimbursed to the SSIs, subject to a
maximum amount of Rs.75000 for each eligible SSI. Accordingly, between March 1994 and
March 2002, about 2376 SSIs availed this financial incentive. These ISO certified SSIs
constitute 0.08% of total number (2.849 million) of registered SSIs in the country. Fifty six
percent of these registered organisations are related to engineering goods industries.
When it comes to the understanding of SSIs there is a source [4] which provides some
understanding of the management practices, their awareness about quality, problems, and
structure. Study [4] indicated that managers tend to be more flexible as their education level
increased, but, only 13.64% were graduates owning SSIs and that only 2% of owners had
technical education. Further, 4% of the owners/ managers had taken formal training on how
to run business and around 25% started business with out formal training or experience. The
report pointed out those organisations faced decreased out put, with about 40% organisations
utilizing only 50% of its capacity. The main reason is being lack of demand, non-availability
of raw material, employee problems, and competition. The average employment / each unit is
around 11 and all the organisations are locally based and targeting local markets. On an
average engineering based industries target 80% of their market locally. However, the report
[4] lacked in-depth knowledge into the how quality being managed across engineering based
organisations. The present study will try to address this gap to enable to better understand
quality management practices in SSIs. This present study however, will not able to give
complete picture of practices but throws light on practices of engineering based industries
SSIs, which are local oriented.

A-32

Objective
The main objective of the study is to improve understanding of small-scale industries, which
are local oriented; regarding their daily work practices and their understanding of quality
management.
Presentation of the Study
In presenting the results, summary is presented in the fallowing sections. Besides presenting
the summary of results, author will present a summary of each individual case separately to
understand the practices and working situation in organizations participated in the study.

Company

No. of Employees

Sri Raghavendhra Painting & Powder Coating Works

11

Phanindhra Micro Tech

Sri Rama Mining Products for Bore well Ltd

23

High Vacuum Equipments Manufacture

13

Potluri Engineering Industries

10

Annapurna Industries

10

Tarun Engineering Works

9
Table A2.1 List of interviewed organizations

A-33

Summary of Cases
Sri Raghavendhra Painting and Powder Coating Works
This company was established and managed by Mr. Nageswara Rao since December 1993 in
Hyderabad. The present employee number is 11, and has increased from 5 when the company
was founded in 1993. Company has five main customers who accounted for 80 to 90% of
total business. All of them are locally based, and is intended to capture the local market. Type
of quality checks conducted for quality assurance are 100 % inspection by the workers in the
company at every operation point and 100 % inspection by customer at the point of delivery.
Even after 100% inspection at every stage, company has 5% rejections at final inspection. It
is important to note that there are only 3 to 5 operations involved from receiving the raw
material until finished product. The main reason for defects was defective material itself.
Company is unable to sustain the cost of high quality material to reduce defects; therefore,
company is satisfied with quality of the product.
Running of company: Every normal day starts with a group meeting lead by
owner/manager and work is assigned to all workers; necessary changes take place to normal
work plans if there is urgency from any customer.
Company does not provide training to workers, as the result all the workers had
experience before joining the company and highly skilled in their respective areas. Workers
are well informed about their responsibility and authority and are

aware of customer

requirements. Company has positive experience with workers. Workers are active in giving
suggestions for improvements and all the suggestions, which considered benefiting company,
are accordingly implemented.
Customers are very much satisfied with the product; they communicate positive
experiences and inform that they are getting awards while placing excess orders for the work
done. It shows that customers are continuing their relationship and are willing to place more
orders based on the performance; and shows there is scope to increase the production
capacity as the number of orders increase. However, the quality of product seems to be very
satisfying but the profit margins are reduced because of heavy competition. Recently
company has expanded its product range to powder coating; previously used to work with
only painting.
Future Plans: The Company has good reputation and plans to increase production
(but no plans for expansion as they are not working to full capacity); there is no problem of
marketing due to the good reputation.

A-34

Phanindhra Micro Tech

It is a single owned company, which has been operating since 1996. Present number of
employee is four, which is decreased from six when started in 1996. This company
manufactures dies and has three main customers who are accounted for 80% of business, out
of which single customer accounts for 50% of business, through sub-contracting of structural
fabrication. There are no quality initiatives in this company. Quality checking is done after
every operation. No special procedures, documentation is done to show the quality related
data. For example: number of breakdowns of machine during the week, total number of
rejections, and number of defective products. Though the mechanical problems are solved
immediately, there is no tracking of the problem about how often it is repeating and where
and in what conditions. The manager is of opinion that the customer satisfaction is about 8090%, and this is based on the repeated orders and no negative feed back from the customers.
Customer satisfaction is evident by the maintainance of long-term relationship. There seems
to be no incentives for workers other than monthly wages and the relationship with the
workers in the company is not that good as said. However, every new recruit is given
thorough training before being assigned any responsible work. There is 90% of realisation of
resources. As said by owner this company has no specific plans for expansion (buying new
machines) on basis of lack of clarity about orders.
Comments: As a very small company with just four employees, this company seems to do
well in itself with out any formal procedures. However, the main disturbing fact is to see is
lack of documentation of problems of a given machine, or performance of employees. Lack
of incentives or to say motivation from owner could be the reason for employees not to stay
longer in the company. It is evident from the total number of employees that has decreased to
four from six when the company started. This company seems to have long-term relationship
with couple of customers, and was found to be not having any interest to increase business.
As a single owner of small company he is satisfied with present position of company but says
it could be very difficult in feature.

A-35

Mining Products for Bore Well

This is a small family owned company, which was started in 1992, by K. Niranjan Reddy and
K. Chitaranjan Reddy. Number of employees in this company are 23 which was increased
from 10 when started in 1992. The main customers are local bore well machine dealers for
spare parts and dealers for bore well in other states, especially in northern parts of India.
Quality of products is assured through 100% inspections and all the workers are given
training before start of their work and are motivated by giving financial rewards for good
performance. Special care is taken towards their personal problems if they arise.
Manager/proprietor is always available for talk when necessary to listen for personal
problems in addition to problems that may arise during work. This company does not have
any certification such as ISO or BSI (Indian) to state the quality of work they do or
procedures they follow. Generally the means of contact with customer is personal and by
telephone. A special marketing executive looks after customers, and always keeps in touch
with them. They will have a group discussion once in every month in the presence of all the
workers for the betterment of quality and other problems related to company. To say this
company is a very successful among circles. It has received quality award, The Best SSI
from Navabharath Bank in 2002.
In general, the quality problems are dealt by specifying the problem to the workers
and by motivating them to work hard to solve the specific problem. The reason for success of
the company, is attributed to quality maintenance and partly to good marketing. It was opined
that the company is reaching about 90% of their quality targets. However, there is no specific
procedure to trace these targets. The mechanical problems are usually discussed in regular
meetings, and target will be set as the breakdown time of the machine should be decreased.
The relationship between manager and workers is very important to the company. If
requested, workers are shifted to their interesting work areas when feasible. In total, there is a
friendly attitude towards workers, so that they can easily approach management to complain
about a problem or to give any suggestion for improvement. Company believes that good
relation with workers encourages them to attain company goals. In regular meetings, they
give a thought to the personal problems of workers and try to solve them, which make them
to think that as a responsible person in the company. Manager says that liberty and authority
in their own area to some extent encourages them to work hard for the company. Company is
planning to expand the product range in future.

A-36

High Vacuum Equipments Manufacturer

This is a single owned/managed company established in 1990. Total number of employees
working at this company is 13; which was increased from two when started in 1990. Main
customers of this company are government nuclear establishments. This company is also
collaborating with Pfeiffer Vacuum from Germany, which provides engineering support.
In-house training was given to every worker when recruited or when assigned to a
new work. Out of thirteen workers, two highly skilled workers do their work on four
machines. In addition, there is one-draft person, three-fitters (one very skilled), one-welder.
In general fitter and draft person will do the quality checks, the most important Helium-Leak
testing is done by the manager/owner him self.
The company has policy of giving incentives for value added work and for good
consistent quality of do day-to-day work. Company does not have any quality related
programmes, nothing more than final inspections to monitor and control quality. Even though
workers are well informed about what is expected of them regarding quality, their attitude
towards quality is not encouraging. As found, it was very difficult to convince the workers.
According to manager, workers are not tuned for quality; getting work done seems to be their
main attitude towards work. Every month a meeting takes place involving the workers to
know the problems. The response from the workers seems to be poor; company gets very few
suggestions from workers (from skilled turners and fitters) which when implemented leads to
productivity. In addition to incentives, company also follows flexible management style in
working time to convince the workers. The experience from flexible management style seems
to be not encouraging; company could not see any change in workers attitude and any
improvements regarding the quality.
According to manager, the success in reaching the quality targets is 60%; and this is
of a great concern to the organisation. The main factors that are affecting the success are lack
of facilities, low product range, problem of market acquisition. Of these, marketing is the
main problem, as the work is not mass market oriented, it is of a great dilemma for the
company whether employing marketing person will help in a decisive manner in getting
orders; it was the reason why company has not employed any marketing agent. Company has
plans to export components. To achieve this company is planning to outsource CNC
machining to produce quality products. Lack of infrastructure is the main reason why the
company was not manufacturing other products.
The work of company is divided into two parts, service and manufacturing work.
Service contributes to 60% of total work and manufacturing contributes 40%. To give a

A-37

perspective, all the work done by this company now was used to be imported twenty years
back in India. It was opined that the quality of product is on par with foreign companies.
Considering the fact company do not use latest technology and good machines the quality of
product is quiet good. When compared to German manufacturers on a given scale 1 to 10 (1
poor to 10 excellent), average quality of the company stands at 6.5 with about 20% of
products reaching the quality grade 9 on the same scale, while quality of German companies
stands at 9.5 in delivering quality products.
In spite of all problems such as, lack of technology, workers callous attitude, lack of
capital, the health of the industry is good with no competition from foreigners. As of
managers knowledge, German companies are best in the field but they failed to compete
with Indian organisations due to low price, which German companies cannot offer. When
compared with Indian products German products costs five times more. The two main
reasons for inferior quality of the products when compared to German products are
1) Lack of investment for superior quality machines
2) Lack of good quality raw material at competitive price.
In general, company is getting mostly positive feedback from customers. From 1997 onwards
in customers point of view, the feedback is excellent; other than for a few complaints
regarding the quality welding for a few of the products. According to manager, there could be
no solution for this unless there is a substantial investment in new equipment, which is not
possible for company. In R&D systems consulting work, customers graded this company as
very satisfactory. In general customers are satisfied with the performance of the products
despite they may not compete with aesthetic quality of the foreign products.

A-38

Potluri Engineering Industries

This company is a single owned/managed and was established in 1988. The main product of
this company is a conveyer roller. It has three major customers who are locally based and
account for 90% of business. Of the three, just one customer (manufacturer of material
handling systems) accounts for 50% of business.
Number of employees in the company is ten which saw an increase from three when
started in 1988. All workers were trained in their respective areas when recruited. However
not all of them are highly skilled. In total, company has four highly skilled, four semi skilled
and two unskilled workers. This company has a bonus system in place for motivating
employees, and yearly one-month bonus is given to every employee. Workers attitude
towards work is acceptable in doing daily work; however, they are not are not active in
giving suggestions for improvements and organisational changes which benefits both
company and employees.
Everyday owner/manager will assign work clarifying what is to be done that day. No
special meetings are conducted to deal with the planning of running the company or improve
the quality or to reduce problems or to set company goals for future. According to manager,
company is facing problems with workers. While there is a shortage of work force in the
company, management feels that the employed workers do not work punctually and
enthusiastically. It was suggested that workers usually apply for a two day leave and would
not turn up for work for two weeks. If this is the case of a highly skilled worker, management
has no other option other than to take him into work, as it would amount to lot of time and
money to train another person to same standards. In the present situation, the company cannot
afford for such a recurring expense.
It was observed that management does not track the mechanical problems and
appropriate quality tools are not used. Only random checking and 100% checking by
customers ensure quality of product. However, if customers find defects, all the parts are
replaced at the cost of company.
This company has some problems in running business, especially with respect to
working capital. The customers are satisfied but there is always a delay in payment from the
customers. In the present situation, company is facing heavy competition, due to which profit
margin decreased and forcing the company to plan to manufacture total conveyer system.
Manager believes, to stay in the business the only way to go forward is by developing total
conveyer system.

A-39

Annapurna Industries
This is a family owned company, established in 1995 with just two workers and present
number totals ten. Its main business is doing job work for local medium scale industries. It
has mainly two customers who are accounted for 95% of business. Only skilled workers were
recruited, avoiding the need to train them onsite. Company has the policy of giving onemonth incentive every year and salary increments every six months based upon performance
to motivate workers. Regarding the workers involvement and enthusiasm in solving the
problems and suggesting improvements, manager is satisfied. However, in existing scenario
only three workers are active in giving some recommendations for improvements. In the view
of manager, remaining workers are inactive and their presence merely felt. They never
suggest or talk anything about the problems of the company and does not any way contribute
to development of the company other than doing their routine work. In dealing with daily
problems, there is an easy approach; solve the problem, as they arise, no future planning.
According to manager, the quality of the work done is good with 5-10% rework and 0%
scraps. The quality performance of the goods is good which can be graded eight on a scale of
1 to 10. There is no advance planning of the work, everyday instructions are given to the
workers based up on the demands. However, customer orders are taken up to 15 days in
advance.
Customers of this company seems to be quiet satisfied, and management gets positive
feedback and assurances for further business, and often complements such as best among the
suppliers . Though present customers are satisfied, company was able to use only 75% of
work force. According to manager, workers want to delay the completion of work by creating
unnecessary problems, and about 90% of them try to avoid work altogether. In true sense, the
organisation has no problem of winning more orders, but the attitude of workers was denting
to take orders.
There are other problems at companys disposal; though competitive, lack of
investment in the machinery is making difficult to compete with some companies leading to
loss of business. Therefore, the company immediate future plans were to replace the old
machines with CNC in order to serve their customers better and win critical customers in
future.

A-40

Tarun Engineering Works

This is a single owned company started in 1992 with just one worker. At present, it has in
total nine workers. Its main work is to manufacture machine parts and does maintenance
work for power packs. It has mainly two locally based customers. According to manager, the
workers of the company are inactive in giving suggestions for improvements; rarely a
suggestion comes from the workers. The reason said to be workers lack the knowledge. In
general, there are no incentives given to the workers to motivate and encourage them to work
hard other than monthly salary. In general, company has no plans or initiatives to improve
quality. Work planning is done as the workday begins in the morning and workers are
assigned their work in the process.
Satisfaction level of customers is about 7.5 on a scale of 1 to 10. According to the
manager, there is heavy competition in the business, and company is performing not par with
the competitors and fear of loosing business. When compared with the competitors the
satisfaction regarding the quality is average. For future, company is planning to upgrade
technology by replacing the old machines with new ones to stay in business.

A-41

Summary
Organizations participated in the study are having total number of employees from four to 23,
which are manufacturing oriented. All the studied organizations have a small customer base,
which does not exceed six in number; however, majority of the business is done with only 2
to 3 customers, who are locally based medium sized industries. These organizations produce
parts that require not more than 4 to 5 operations. The quality of the product is assured
through 100% inspection; however, there is no special planning for quality or quality
improvement activities. It is common to see; neither workers nor owners to have any
technical background. In the present study, people who have technical education such as
engineering own only two out of seven organizations; remaining organizations are owned by
people who have working experience in similar field. Except a single company, none of them
is technical oriented. In general, workers with experience are preferred for employment.
However, some of companies provide initial training to workers in specific operations they
have to do in their job.
Worker incentives or motivational activities are not common among organizations,
but performance based appreciation has been observed in some organizations. Giving
incentives to workers will not be a problem for companies because organizations have a
single owner. Overall, it has been reported that workers are not enthusiastic in improving the
quality. In general, there is a strong negative feeling regarding workers attitude, some owners
think workers try to avoid doing work, even they suggest incentives does not work to
motivate employees. Apart from two organizations, none had positive experience with
workers. Only one organization has a method of problem solving and nonetheless, there is no
documentation or logbooks to make a case history. In the process, targets such as reduce
machine breakdowns, reduce rejections are set and reviewed that after specific period, the
reviews are also based just on workers remembrance of problem occurrence, because there is
no recorded data to verify improvements.
Repetitive orders are the yardstick for organizations to know about customer
satisfaction and decide on changes or improvements to the product. Organizations do receive
customer feedback, to provide suggestions or give compliments for products/services they
provide; normally this is done through phone calls. Common channel to receive customer
orders are is on phone because most of companies do not have marketing person; however, it
makes sense to deal with customers on phone as they have very few customers. In the present
scenario, most of the organizations are facing heavy competition; and are concerned about
future, because of constant decrease in price due to competition. As a result, none of the

A-42

organizations has any major changes or plans that they will undertake other than technology
up gradation plans to face the competition.
Conclusion
The case study on SSIs in Indian organisations has highlighted some basic problems. It is
understood companies are knowledgeable about their work; however, unable to expand their
knowledge due to lack of training of managerial people and their educational background.
Other factors that are affecting the success of SSIs are lack of facilities, low product range;
problem of market acquisition and more so, marketing seems to be the main problem for
many organizations. Study shows management activities are not relevant to pursue
improvements. Other problems such as quality of raw materials, lack of investment in the
machinery are also hindering the quality of products. However, human resource problem is
one of the main issues in SSIs, particularly in areas such as in-house training, providing
incentives and maintaining good relationships with workers.
Though there are many teething problems to deal with, most organizations are
running in profits. However, they see a decrease in profit margin from past 5 to 6 years, and
unable to get new customers to sustain profit. Thus, existence of these organizations in near
future can be questioned if they do not act in organized manner as done by Mining Products
Company in pursuing improvement activities. Moreover, it is impossible for companies to
make improvements unless the management is knowledgeable enough and trained to do so
which is not the case in present companies participated in the study.
This study enabled to serve the objective of improving the understanding of practices,
problems in SSIs. This study has presented the problems and management issues in SSIs;
however, this will not able to give complete picture of practices of all SSIs but definitely
throws light on practices of engineering based SSIs, which are local oriented. Further
qualitative studies with larger sample are necessary to conform these findings.

A-43

References
[1] Articles at website: http://www.smallindustryindia.com/
[2] Handbook of Industrial Policy and Statistics 2003-2005,
http://eaindustry.nic.in/new_handout.htm
[3] National Strategy for Manufacturing:
http://nmcc.nic.in/publications/strategy_paper_0306.pdf
[4] Dr. Syed Vazith Hussain (2003), Small-Scale Industries in New Millennium
[5] http://indiaonestop.com/sickunits.htm

A-44

Appendix 3
Determination of Critical Activities from Combined Analysis of
Survey1 & Survey 2

A-45

Analysis

Appendix 3

Introduction
This part of the report is used to identify critical activities that have to be considered for
developing the model [chapter: 6.4]. Author will present the effectiveness of all activities
necessary to identify those activities, which are not being pursued by Indian organizations as
required per ISO 9001: 2000 requirements. The effective realization of activities is
determined by data collected from Survey 1[Appendix: 1] and Survey 2 (data collected from
organizations with established QMS in Hyderabad-India)
Calculation of effective realization of activities:
1. For each response with strongly agree (or) completely satisfied: activity it is
considered as 100% realized
2. For each response with agree or somewhat satisfied: Activity is considered as
50% realized.
3. Total effective realization: Weighted realization of Survey 1 + Weighted
realization of Survey 2
4. Weighted realization of Survey 1 = Realization of Survey1 x (Number of
responses for Survey 1/Total number of Responses)
5. Weighted realization of Survey 2= Realization of Survey2 x (Number of
responses for Survey 2/Total number of Responses)
Margin selected for final analysis is 60%, all the activities which are being performed 60% or
below 60% are considered as critical activities.
Q 1-4, Quality Management System
Q 5-12, Management Responsibility
Q 13-16, Customer Focus
Q 17-20, Quality Policy
Q 21-23, Quality Planning
Q 24-27, Responsibility Authority &
Communication
Q 28-33 Resource Management
Q 34-40, Product Realization
Q 41-44, Supplier Focus
Q 45-51, Measurement, Analysis &
improvement

Cronbach's
Cronbach's
Cronbach's
Cronbach's
Cronbach's

Alpha
Alpha
Alpha
Alpha
Alpha

=
=
=
=
=

0,759892
0,853974
0,819204
0,786446
0,782428

Cronbach's Alpha = 0,802528

Cronbach's Alpha = 0,892317
Cronbach's Alpha = 0,861689
Cronbach's Alpha = 0,801474
Cronbach's Alpha = 0,818057

Table A3.1 Internal reliability measurement of combined data from Survey 1 and Survey 2

A-46

Analysis

Appendix 3

Items
Quality Management
System

Management
Commitment

Customer Focus

Quality Policy

Quality Planning

Responsibility, Authority
& Communication

Resource Management

Product Realization

Purchasing

Measurement, Analysis
& Improvement

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51

Survey 2
N
21
21
21
21
20
21
21
20
21
20
20
21
21
21
20
21
20
21
21
19
20
20
20
20
20
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19

Survey 1
N
30
29
29
29
30
29
30
30
30
29
30
30
29
29
30
28
30
29
30
30
30
29
30
30
29
30
30
29
29
30
30
30
30
30
28
30
30
29
29
29
29
29
30
29
29
29
27
29
29
29
30

Critical
Value
0,164
0,0987
0,6798
0,4915
0,2158
0,2668
0,3633
0,0655
0,2969
0,0656
0,0814
0,5530
0,6726
0,2156
0,4399
0,4367
0,1718
0,1158
0,3483
0,6665
0,5658
0,4578
0,9211
0,4759
0,2765
0,9509
0,9509
0,4479
0,5409
0,9509
0,1961
0,1342
0,4601
0,0986
0,5439
0,5048
0,7195
0,4999
0,0698
0,0222
0,8993
0,2684
0,6443
0,3591
0,2420
0,4735
0,1210
0,6504
0,9664
0,1187
0,3452

Adjusted
Critical Value
0,1002
0,0642
0,6371
0,4187
0,1654
0,2152
0,3332
0,0406
0,2491
0,0394
0,0543
0,5090
0,6392
0,1708
0,3959
0,4036
0,1302
0,0735
0,3057
0,6443
0,5214
0,4107
0,9106
0,4267
0,2361
0,9466
0,9460
0,3703
0,5050
0,9459
0,1674
0,0995
0,4194
0,0662
0,5052
0,4557
0,6911
0,4556
0,0496
0,0128
0,8913
0,2313
0,6147
0,3335
0,2047
0,4246
0,0844
0,6211
0,9642
0,0894
0,2790

Table 2: Mann-Whitney Test for Survey 1 and Survey 2

A-47

Analysis

Appendix 3

Table A.3 Mean values of data from Survey 1 and Survey 2

Items
Quality Management
System

Management
Commitment

Customer Focus

Quality Policy

Quality Planning
Responsibility,
Authority &
Communication

Resource Management

Product Realization

Purchasing

Measurement, Analysis
& Improvement

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51

MeanSurvey 1
4,63
4,52
4,48
4,52
4,47
4,48
4,00
4,30
4,40
4,48
4,33
4,30
4,24
4,24
4,27
4,07
4,43
4,59
4,37
4,13
4,07
4,38
4,13
4,30
4,21
4,13
4,07
3,97
4,28
4,20
3,83
3,80
4,00
4,47
4,32
4,37
4,27
4,38
4,38
4,38
4,17
4,28
4,27
3,97
4,34
4,41
4,41
4,24
4,07
3,69
3,80

Survey 2
4,43
4,14
4,38
4,38
4,25
4,24
4,19
3,85
4,05
4,10
3,82
4,48
4,05
4,05
4,00
3,86
4,06
4,24
4,05
4,29
4,00
4,30
4,05
4,15
4,00
4,21
3,89
4,21
4,05
4,21
4,16
4,16
4,16
4,21
4,21
4,21
4,16
4,32
3,84
3,63
4,00
3,84
4,05
3,53
4,11
4,26
4,00
4,05
4,11
4,11
4,05

Mean
Difference
0,20
0,38
0,10
0,14
0,22
0,24
-0,19
0,45
0,35
0,38
0,51
-0,18
0,19
0,19
0,27
0,21
0,37
0,35
0,32
-0,16
0,07
0,08
0,08
0,15
0,21
-0,08
0,18
-0,24
0,23
-0,01
-0,33
-0,36
-0,16
0,26
0,11
0,16
0,11
0,06
0,54
0,75
0,17
0,44
0,22
0,44
0,23
0,15
0,41
0,19
-0,04
-0,42
-0,25

Combined Mean
4,55
4,33
4,41
4,43
4,35
4,35
4,08
4,10
4,25
4,27
4,16
4,37
4,14
4,33
4,14
3,94
4,29
4,41
4,24
4,22
4,00
4,31
4,16
4,24
4,10
4,18
3,98
4,06
4,20
4,22
3,98
3,96
4,10
4,37
4,22
4,29
4,22
4,35
4,18
4,08
4,10
4,18
4,18
3,82
4,24
4,33
4,18
4,22
4,08
3,84
3,88

A-48

Analysis

Appendix 3

Table 4: Realization of Quality management activities

Sample Sample
Q,No
Statement
1
2
Quality Management System
1
83,33
71,40
Organizations established and maintaining a quality
manual with strong control of documentation at all levels
Quality policy and quality objectives are documented in
2
79,3
61,91
quality manual
Documentation control systems are in place to track
3
revision levels of all specifications, drawings, forms and
75,86
73,81
other documents
4

5
6
7
8

10
11
12

13
14
15
16

Internal audits are performed on the quality system

Management Commitment
Senior management establishes quality policy and quality
objectives and communicates to organization
Senior management ensures the availability of resources
to achieve objectives
Regular review of suitability of quality policies and
objectives takes place
Senior executives clearly articulate the organizations
values relevant to quality and continuous quality
improvement
Behavior of the senior executives is consistent with
values relevant to quality and continuous quality
improvement
Senior executives have demonstrated an ability to
manage the changes (e,g,, organizational, technological)
needed to improve the quality and services
Senior executives act on suggestions to improve the
quality and services
Senior executives generate confidence that efforts to
improve quality will succeed
Customer Focus
The organization does a good job of assessing current
customer needs and expectations
Customer complaints are studied to identify patterns and
prevent the same problems from recurring
Organization uses data from customers to improve
services
Organization uses data on customer expectations and/or
satisfaction when designing new services and products

Wtd.
Mean
78,34
72,43
75,01

79,31

71,42

76,15

79,85

69,63

76,01

76,66

65

72

75,86

64,29

71,38

53,33

64,29

57,98

68,33

47,5

60

71,66

57,15

65,86

74,13

55

66,48

70

52,5

63

68,33

73,81

70,52

69,7

59,94

65,46

63,7

59,52

62,02

74,13

59,53

68,29

63,33

57,5

61

55,3

47,62

52,23

64,11

56,04

60,98

A-49

Analysis

Appendix 3

17

Quality Policy
Present Quality policy is appropriate to the organization

75

60

69

18

Quality policy commits to the continual improvement

81

64,29

74,89

70

59,53

65,81

61,66

57,86

60,14

71,91

60,42

65,59

58,33

52,5

56

72

65

69,2

58,5

60

59,1

62,94

59,16

61,00

66,6

60

63,96

62

60,00

61,2

60

60,5

60,2

55

55,2

55,08

60,9

58,92

59,36

51,7

60,5

55,20

67,2

57,8

63,44

67,2

63,1

65,56

46,5

63,1

53,14

48,3

65,7

55,26

53,3

60,52

56,19

55,7

61,78

57,94

76,5

60,52

70,11

19
20

21
22
23

24

25
26
27

28
29
30
31
32
33

34

Quality Policy is communicated and well understood

with in the organization
Quality Policy is reviewed periodically for continuing
suitability
Planning
Measurable quality objectives are established for all
functions and levels within the organization
Quality manual and procedures for key activities are
documented
Resources and activities needed to achieve Quality
Objectives are identified and allocated
Responsibility, Authority &
Communication
Responsibilities and authorities are clearly defined and
communicated within the organization
Key personal (management) responsible for
establishment, implementation and maintenance of
quality management system is appointed,
Awareness of customer requirements throughout the
organization
A very good communication process is established in
organization for effective QMS
Resource Management
Sufficient resources are allocated for implementing,
maintaining and improving quality management system
Organization provides and maintains the infrastructure
needed to achieve conformity to product requirements
Resources are provided to establish and control working
conditions needed to assure product/service quality
Staff is given education and training in how to identify
and act on quality improvement opportunities,
Staff is given education and training in statistical and
other quantitative methods that support quality
improvement
Staff are given the needed education and training to
improve job skills and performance
Product Realization
Quality objectives and requirements of the product are
clearly defined

A-50

Analysis

35
36
37
38
39

40

41

42
43
44

45
46
47

48

49

50

51

From the customer is clear and specific (regarding

requirements of product),
Product specific processes are clearly established and
documented,
Reviews are done to ensure that organization has the
capability to provide requested product or service
Records are kept to provide evidence that the process and
resulting product meet requirements
There is effective customer communication for providing
product information, handling enquiries, orders and
customer feedback (along with complaints),
Organization as efficient approach to identify the product
status by suitable means throughout product realization
process
Purchasing
Organization has established and documented the criteria
for evaluation and selection of suppliers that provide
materials and services
Organization works closely with suppliers to improve the
quality of their products and services
Organization has defined system for monitoring
suppliers performance
Organization involves suppliers for developing a new
product/service
Measurement, Analysis & Improvement
Customer satisfaction is monitored regularly, to know
organization actually meet customer expectations
Product conformity is measured and monitored to ensure
that organization actually meet all requirements
Organization has system in place to take action to
eliminate the cause of nonconformities in order to
prevent reoccurrence
Organization has system in place to eliminate the causes
of potential nonconformities in order to prevent
occurrence
Organization promotes the use of statistical tools to
monitor and measure product and processes for
effectiveness and/or improvement
Organisation collects and analyses appropriate data to
demonstrate the suitability and effectiveness of the QMS
and to evaluate where continual improvement of the
effectiveness of the QMS can be made
Organization has effective system to ensure that product
which doesnt conform to product requirements is
identified and controlled to prevent its unintended use or
delivery

Appendix 3

66,07

60,52

63,85

68,33

63,15

66,05

63,33

60,52

62,05

70,6

65,7

68,64

68,9

50

61,34

68,9

44,73

59,23

68,94

57,88

64,52

59

57,89

58,56

67,2

55,26

62,42

65

60,52

63,21

53,44

44,73

49,96

61,16

54,6

58,54

67,2

55,2

62,4

70,68

63,15

67,67

70,37

52,63

63,27

63,7

60,52

62,43

56,89

60,52

58,34

41,37

60,52

49,03

43,33

52,63

47,05

A-51

Analysis

1
2

4
5
6
7
8
9
10
11

12
13
14
15
16
17
18
19
20
21
22

Appendix 3

59,07
Quality Results & Satisfaction with Results
The organization has done a good job of simplifying
56,5
how products and services are provided.
Over the past few years, the organization has shown
steady, measurable improvements in the quality of
65,5
products & services
Over the past few years, the organization has shown
steady, measurable cost reduction while maintaining
or improving quality

How satisfied are you with the results of your

organization's efforts to improve quality?
Board understanding of quality?
Degree of Board commitment to continuous
improvement of quality?
Quality of training provided
Ability to communicate the quality across the
organization
Level of employee participation in giving suggestions
for improvement of quality?
Effective utilization of resources?
Overall performance considering long-term growth
prospects, customer satisfaction, employee
satisfaction and profitability

Improving customer satisfaction

Improving productivity/efficiency
Improving continuity of Quality
Having opportunities to use your skills and abilities
better
Getting recognition (i,e,, praise, promotion, etc,) from
your superiors
Feeling that you have accomplished something
worthwhile
Making changes that improve the processes of
customer satisfaction
Spreading process changes to other parts of the
organization,
Gaining support for process changes,
Motivated to see the company succeeds,
Exciting work environment,

57,88

58,06

54,7

55,85

54,7

61,59

61,5

52,5

58,24

61,17

53,97

58,56

57,3

64,7

59,98

70

67,6

69,13

72

59,6

67,51

54

62,8

57,19

62,6

55,2

59,92

59,3

52,3

56,77

62,6

60

61,66

59,6

65,7

61,81

62,18

60,99

61,75

75,3
77,3
74

64,7
63,8
61

71,46
72,41
69,29

74

59,04

68,58

70

60,9

66,71

72,6

54,2

65,94

74

55,2

67,19

66,66

59,04

63,90

66
72
69,3

62,8
61
63,1

64,84
68,02
67,06

71,71

60,07

67,49

A-52

Analysis

Appendix 3

Figure A. 27 Realization of quality management activities

Comparison of results from survey1 and survey 2 indicates the overall performance trend of
different aspects of quality management system according to ISO 90001: 2000 requirements
is same. However, graph (Figure A. 27) clearly depicts results from survey 1 with sample
from organizations with collaborations with German organizations are positively positioned
compared to results from survey 2 the sample representing common Indian organizations that
are certified. Performance of activities related to establishing QMS has been positive in both
samples. However, management commitment, customer focus, quality policy, planning,
resource management, product realization, purchasing, measurement analysis and
improvement related activities performance is below performance limit line for the survey 2,
whereas in the survey 1 only resource management activities, measurement analysis and
improvement related activities are performed below limit line. Altogether combined curve of
survey 1 and survey 2 indicates customer focus, planning, resource management, product
realization, purchasing and measurement analysis and improvement are the areas needed
attention in Indian organization. However, not all the activities in these aspects are performed
at the same level. This makes it mandatory to identify critical activities that needed to be
addressed for overall effectiveness of QMS. Thus, identified activities as listed in Table: A.5
gives opportunity to improve upon existing level of practices as found in Indian
organizations.

A-53

Analysis

Appendix 3

Table A.5 gives out the list of critical activities that are not being realized by organizations,
which are having established QMS. These activities are considered to be critical as majority
of organizations are pursuing QMS according ISO 9001: 2000 and unable to realize these
activities, which are meant to be, followed according to ISO 9001:2000 requirements for
realization of true benefits from the standard.
Table A.5: list of critical activities at cutoff point 60

7
8
16
20
26
27

Regular review of suitability of quality policies and objectives

takes place
Senior executives clearly articulate the organizations values
relevant to quality and continuous quality improvement
Organization uses data on customer expectations and/or
satisfaction when designing new services and products
Quality Policy is reviewed periodically for continuing suitability
Awareness of customer requirements throughout the
organization
A very good communication process is established in
organization for effective QMS

Survey
1

Survey
2

Wted
Mean

53,33

64,29

57,98

68,33

47,5

60

55,3

47,62

52,23

61,66

57,86

60,14

60

60,5

60,2

55

55,2

55,08

28

Sufficient resources are allocated for implementing, maintaining

and improving quality management system

51,7

60,5

55,20

31

Staff is given education and training in how to identify and act

on quality improvement opportunities,

46,5

63,1

53,14

32

Staff is given education and training in statistical and other

quantitative methods that support quality improvement

48,3

65,7

55,26

33

Staff are given the needed education and training to improve job
skills and performance

53,3

60,52

56,19

40

Organization as efficient approach to identify the product status

by suitable means throughout product realization process

68,9

44,73

59,23

59

57,89

58,56

53,44

44,73

49,96

56,89

60,52

58,34

41,37

60,52

49,03

43,33

52,63

47,05

41

44
49

50

51

Organization has established and documented the criteria for

evaluation and selection of suppliers that provide materials and
services
Organization involves suppliers for developing a new
product/service
Organization promotes the use of statistical tools to monitor and
measure product and processes for effectiveness and/or
improvement
Organisation collects and analyses appropriate data to
demonstrate the suitability and effectiveness of the QMS and to
evaluate where continual improvement of the effectiveness of
the QMS can be made
Organization has effective system to ensure that product which
doesnt conform to product requirements is identified and
controlled to prevent its unintended use or delivery

A-54

Questionnaire

Appendix 4

Appendix 4
Survey Questionnaire

A-55

Questionnaire

Appendix 4

TECHNICAL UNIVERSITY OF BERLIN

Chair for Quality Science
Thank you for considering to participate in this research survey!
Notes:
In responding to questions that ask you to make a global judgment about the organization,
please respond based upon your knowledge and experience of the department or area in
which you are currently employed, the other departments or areas you come in contact within
the course of doing your job, and the information you have on the organization as a whole.
Filling out the Questionnaire:

In filling out the questionnaire (selecting the one of the five 1, 2, 3, 4, 5 options) you
just have to indicate appropriate answer in the survey answer sheet, for the
appropriate question.

Sending the Questionnaire:

Please return only the filled out survey answer sheet (do not send the complete
questionnaire) using the reply cover provided to you.
A. THE ORGANIZATION AS A WHOLE
These questions relate to the type of organization. None of these descriptions is any better
than the others; they are just different.
For example: In question 1, if Organization A seems very similar to mine, B seems somewhat
similar, and C and D do not seem similar at all then your answer will be A or A,B and if C
seems very similar and A seems somewhat similar you could state C or C,A
1. Organization Character
A. Organization is a very personal place. It is a lot like an extended family. People seem to
share a lot of them selves.
B. Organization is a very dynamic and entrepreneurial place. People are willing to stick their
necks out and take risks.
C. Organization is a very formalized and structured place. Bureaucratic procedures generally
govern what people do.
D. Organization is very production oriented. A major concern is with getting the job done.
People arent very personally involved.
My Company is

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Appendix 4

2. Organizations Managers
A. Managers are warm and caring. They seek to develop employees full potential and act as
their mentors or guides.
B. Managers are risk-takers. They encourage employees to take risks and be innovative.
C. Managers are rule-enforcers. They expect employees to follow established rules, policies,
and procedures.
D. Managers are coordinators and coaches. They help employees meet the organizations
goals and objectives.
My Company is
3. Organization Cohesion
A. The glue that holds together is loyalty and tradition. Commitment to this organization runs
high.
B. The glue that holds together is commitment to innovation and development. There is an
emphasis on being first.
C. The glue that holds together is formal rules and policies. Maintaining a smooth running
operation is important here.
D The glue that holds together is the emphasis on tasks and goal accomplishment. A
production orientation is commonly shared.
My Company is
4. Organization Emphases
A. Emphasizes human resources. High cohesion and morale in the organization are
Important.
B. Emphasizes growth and acquiring new resources. Readiness to meet new challenges is
important.
C. Emphasizes permanence and stability. Efficient, smooth operations are important.
D. Emphasizes competitive actions and achievement. Measurable goals are important.
My Company is
5. Organization Rewards
A. Distributes its rewards fairly equally among its members. Its important that everyone
from top to bottom be treated as equally as possible.
B. Distributes its rewards based on individual initiative. Those with innovative ideas and
actions are most rewarded.
C. Distributes its rewards based on rank. The higher you are, the more you get.
D. Distributes its rewards based on the achievement of objectives. Individuals who provide
leadership and contribute to attaining the organizations goals are rewarded.
My Organisation is
B. GENERAL INFORMATION ABOUT THE ORGANIZATION
Please indicate the extent to which each of the following applies to your organizations
quality improvement efforts.
INSTRUCTIONS
In this section you are asked to assess your organizations efforts to improve the quality of
products and services it provides. Please read each statement carefully. Indicate the extent to
which you agree or disagree that the statement characterizes your organization by circling the
appropriate response (1 = Strongly Disagree, 5 = Strongly Agree). In answering the

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Appendix 4

questions, you should think about what the organization is actually like now, not how you
think it might be in the future or how you might wish it to be.
Strongly
Disagree
1

Disagree
2

Neither Agree
Nor Disagree
3

Agree

Strongly Agree

Dont
Know
0

1. A philosophy (Quality Policy) of continuous improvement of quality through

improvement of organizational processes.
1
2
3
4
5

2. An explicit focus on customers both external and internal.

1
2
3
4
5

3. Empowering employees to identify quality problems and improvement opportunities

and to take action on these problems and opportunities.
1
2
3
4
5
0
4. Use of quality improvement teams including employees from multiple departments
and from different organizational levels as the major mechanism for introducing
improvements in organizational processes.
1
2
3
4
5
0
5. Does your organization have measurable goals related to customer satisfaction?
Yes

NO

6. Have your workers a say in how the company is run?

Yes

NO

7. Do you consider your organization to be formally involved in Continuous Quality

Improvement/Total Quality Management (CQI/TQM) efforts?
Yes
No
if other please specify
8. What certification does your company posses?
9. Have you received any Quality excellence awards?
Yes
No
if yes what
C. QUALITY SYSTEM REQUIREMENTS
In responding to questions that ask you to make a global judgment about the organization,
please respond based upon your knowledge and experience of the department or area in
which you are currently employed, the other departments or areas you come in contact within
the course of doing your job, and the information you have on the organization as a whole.

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Appendix 4

INSTRUCTIONS
In this section you are asked to assess your organizations efforts to improve the quality of
products and services it provides. Please read each statement carefully. Indicate the extent to
which you agree or disagree that the statement characterizes your organization by circling the
appropriate response (1 = Strongly Disagree, 5 = Strongly Agree). In answering the
questions, you should think about what the organization is actually like now, not how you
think it might be in the future or how you might wish it to be.
Strongly
Disagree
1

Disagree
2

Neither Agree
Nor Disagree
3

Agree

Strongly Agree

1. Quality Management System

1. The organisation established and maintains a quality manual.
1
2
3
4
5

Dont
Know
0

2. Quality policy and quality objectives are documented in quality manual.

1
2
3
4
5

3. Documentation control systems are in place to track revision levels of all

specifications, drawings, forms and other documents.
1
2
3
4
5

4. Internal audits are performed on the quality system.

1
2
3
4

2. Management Responsibility
Management Commitment
5. Senior management establishes quality policy and quality objectives and
communicates to organisation
1
2
3
4
5

6. Senior management ensures the availability of resources to achieve objectives

1
2
3
4
5

7. Regular review of suitability of quality policies and objectives takes place.

1
2
3
4
5

8. The senior executives clearly articulate the organizations values relevant to quality
and continuous quality improvement.
1
2
3
4
5
0
9. The behaviour of the senior executives is consistent with values relevant to quality
and continuous quality improvement.
1
2
3
4
5
0

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Appendix 4

10. The senior executives have demonstrated an ability to manage the changes (e.g.,
organizational, technological) needed to improve the quality and services.
1
2
3
4
5
0
11. The senior executives act on suggestions to improve the quality and services.
1
2
3
4
5

12. The senior executives generate confidence that efforts to improve quality will
succeed.
1
2
3
4
5

Customer Satisfaction
13. The organization does a good job of assessing current customer needs and
expectations.
1
2
3
4
5

14. Customer complaints are studied to identify patterns and prevent the same problems
from recurring.
1
2
3
4
5
0
15. The organization uses data from customers to improve services.
1
2
3
4
5

16. The organization uses data on customer expectations and/or satisfaction when
designing new services and products.
1
2
3
4
5

Quality Policy
17. Quality policy is appropriate to the organisation.
1
2
3
4

18. Quality policy commits to the continual improvement

1
2
3
4

19. It is communicated and understood with in the organisation.

1
2
3
4

20. Reviewed periodically for continuing suitability.

1
2
3
4

Planning
21. Measurable quality objectives are established for all functions and levels within the
organisation.
1
2
3
4
5
0
22. Quality manual and procedures for key activities are documented

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Appendix 4

23. Resources and activities needed to achieve Quality Objectives are identified and
allocated.
1
2
3
4
5
0
Responsibility, Authority and communication
24. Responsibilities and authorities are clearly defined and communicated within the
organisation
1
2
3
4
5
0
25. Appointment of key personal (management) responsible for establishment,
implementation and maintenance of quality management system.
1
2
3
4
5

26. Awareness of customer requirements throughout the organisation.

1
2
3
4
5

27. Avery good communication process is established in organisation for effective QMS
and for clear and effective ways for people within the organisation to communicate.
1
2
3
4
5
0
3. Resource Management
28. Sufficient resources are allocated for implementing, maintaining and improving
quality management system.
1
2
3
4
5

29. Organisation provides and maintains the infrastructure needed to achieve conformity
to product requirements.
1
2
3
4
5
0
30. Resources are provided to establish and control working conditions needed to assure
product/service quality
1
2
3
4
5
0
31. Staff are given education and training in how to identify and act on quality
improvement opportunities.
1
2
3
4
5

32. Staff are given education and training in statistical and other quantitative methods that
support quality improvement.
1
2
3
4
5
0
33. Staff are given the needed education and training to improve job skills and
performance.
1
2
3
4
5

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Appendix 4

4. Product Realization
34. Quality objectives and requirements of the product are clearly defined.
1
2
3
4
5

35. Information from the customer is clear and specific (regarding requirements of
product).
1
2
3
4
5

36. Product specific processes are clearly established and documented.

1
2
3
4
5

37. Reviews are done to ensure that organisation has the capability to provide requested
product or service.
1
2
3
4
5
0
38. Records are kept to provide evidence that the process and resulting product meet
requirements.
1
2
3
4
5
0
39. There is effective customer communication for providing product information,
handling enquiries, orders and customer feed back (along with complaints).
1
2
3
4
5

40. Organisation as efficient approach to identify the product status by suitable means
throughout product realisation process.
1
2
3
4
5
0
Purchasing
41. Organisation as established and documented the criteria for evaluation and selection
of suppliers that provide materials and services.
1
2
3
4
5
0
42. The organization works closely with suppliers to improve the quality of their products
and services.
1
2
3
4
5
0
43. Organisation has defined system for monitoring suppliers performance.
1
2
3
4
5

44. Organisation involves suppliers for developing a new product/service.

1
2
3
4
5

5. Measurement Analysis and Improvement

45. Customer satisfaction is monitored regularly, to know organisation actually meet
customer expectations.
1
2
3
4
5
0

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Appendix 4

46. Product conformity is measured and monitored to ensure that organisation actually
meet all requirements.
1
2
3
4
5
0
47. Organisation has effective system to ensure that product which doesnt conform to
product requirements is identified and controlled to prevent its unintended use or
delivery.
1
2
3
4
5
0
48. Organisation has system in place to take action to eliminate the cause of
nonconformities in order to prevent reoccurrence.
1
2
3
4
5

49. Organisation has system in place to eliminate the causes of potential nonconformities
in order to prevent occurrence.
1
2
3
4
5
0
50. Organisation promotes the use of statistical tools to monitor and measure product and
processes for effectiveness and/or improvement.
1
2
3
4
5
0
51. Organisation collects and analyse appropriate data to demonstrate the suitability and
effectiveness of the QMS and to evaluate where continual improvement of the
effectiveness of the QMS can be made.
1
2
3
4
5
0
D. QUALITY RESULTS
1. The organization has done a good job of simplifying how products and services are
provided.
1
2
3
4
5
0
2. Over the past few years, the organization has shown steady, measurable
improvements in the quality of products & services
1
2
3
4
5

3. Over the past few years, the organization has shown steady, measurable cost reduction
while maintaining or improving quality.
1
2
3
4
5
0

E. SATISFACTION WITH QUALITY IMPROVEMENT RESULTS

Not at all Satisfied
1

Completely
Satisfied

Some What Satisfied

3

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Appendix 4

1. To date, how satisfied are you with the results of your organization's efforts to improve
quality?
1
2
3
4
5
6
2. How satisfied are you with each of the following aspects of your organization's efforts to
improve quality:
a) Board understanding of quality?
1
2
3

b) Degree of Board commitment to continuous improvement of quality?

1
2
3
4
5
6
c) Quality of training provided?
1
2
3

d) Ability to communicate the quality across the organisation?

1
2
3
4
5
6
e) Level of employee participation in giving suggestions for improvement of quality?
1
2
3
4
5
6
f) Effective utilization of resources?
1
2
3

g) Overall performance considering long-term growth prospects, customer

satisfaction, employee satisfaction and profitability
1

1. Improving customer satisfaction

1
2
3

2. Improving productivity/efficiency.
1
2
3

3. Improving continuity of Quality.

1
2
3

F. Employee Satisfaction/ Work Environment

4. Having opportunities to use your skills and abilities better.

1
2
3
4
5
6
5. Getting recognition (i.e., praise, promotion, etc.) from your superiors.
1
2
3
4
5
6
6. Feeling that you have accomplished something worthwhile.
1
2
3
4
5
6

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Appendix 4

7. Making changes that improve the processes of customer satisfaction.

1
2
3
4
5
6
8. Spreading process changes to other parts of the organization.
1
2
3
4
5
6
9. Gaining support for process changes.
1
2
3

10. Motivated to see the company succeed.

1
2
3
4

11. Exciting work environment.

1
2
3

12. Freedom in position to take independent action when needed.

1
2
3
4
5
6
G. Recent Major Organizational Changes
1. Has your organization undergone a merger or acquisition within the last 5 years?
Yes No
a. If YES, what was the effect of this merger on the quality at your organisation?
(Please describe)

b. If YES, what was the effect of this merger on staff? (Please describe)
2. What changes you could see in your company in next 5 years?
F) Working with developing countries
Yes No
1. How many countries you are working with?
2. How many countries you are working with in developing countries?
a) Have you plant in India or collaboration with Indian companies?
Yes

No

3. With what expectations you went to do business with developing countries?

4. Have your expectations fulfilled in doing business with developing countries?

Yes

No

If yes by how much

5. Generally what do you offer in doing business with other developing countries?
Thank You for Completing This Survey. Please Return the filled out
answer sheet using the reply cover provided to you.

A-65

Questionnaire

Appendix 4

Survey Answer Sheet

Title
Name
Position

Prof

Dr

Mr

Ms

Organisation /
Company

Global

No. of Employees
Address

Country
e-mail
Telephone
Fax
Website
Do you want the Report
Would you like to be
contacted in future

Yes

No

Yes

No

Please fill the answers (Yes/No or 1,2.etc or A,B,C) of the questions in their
corresponding boxes.
Q.No
Answer
Q.No
Answer
A. THE ORGANIZATION AS A WHOLE
1
5
2
4
3
B. GENERAL INFORMATION ABOUT THE ORGANIZATION
1
1 2 3 4 5 0
6
Yes No
2
1 2 3 4 5 0
7
Yes No
3
1 2 3 4 5 0
8
4
1 2 3 4 5 0
9
Yes No
5
Yes No
C. QUALITY SYSTEM REQUIREMENTS
1
1 2 3 4 5 0
19
1 2 3 4 5
2
1 2 3 4 5 0
20
1 2 3 4 5
3
1 2 3 4 5 0
21
1 2 3 4 5
4
1 2 3 4 5 0
22
1 2 3 4 5
5
1 2 3 4 5 0
23
1 2 3 4 5
6
1 2 3 4 5 0
24
1 2 3 4 5
7
1 2 3 4 5 0
25
1 2 3 4 5
8
1 2 3 4 5 0
26
1 2 3 4 5
9
1 2 3 4 5 0
27
1 2 3 4 5
10
1 2 3 4 5 0
28
1 2 3 4 5
11
1 2 3 4 5 0
29
1 2 3 4 5

0
0
0
0
0
0
0
0
0
0
0

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Questionnaire

12
13
14
15
16
17
18
37
38
39
40
41
42
43
44
1
2
1
2.a
.2.b
2.c
1
2
3
4
5
6

Appendix 4

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

3
3
3
3
3
3
3
3
3
3
3
3
3
3
3

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

5 0
30
1 2 3 4 5
5 0
31
1 2 3 4 5
5 0
32
1 2 3 4 5
5 0
33
1 2 3 4 5
5 0
34
1 2 3 4 5
5 0
35
1 2 3 4 5
5 0
36
1 2 3 4 5
5 0
45
1 2 3 4 5
5 0
46
1 2 3 4 5
5 0
47
1 2 3 4 5
5 0
48
1 2 3 4 5
5 0
49
1 2 3 4 5
5 0
50
1 2 3 4 5
5 0
51
1 2 3 4 5
5 0
1 2 3 4 5
D. QUALITY RESULTS
1 2 3 4 5 0
3
1 2 3 4 5
1 2 3 4 5 0
E. SATISFACTION WITH QUALITY IMPROVEMENT RESULTS
1 2 3 4 5 6
2.d
1 2 3 4 5
1 2 3 4 5 6
2.e
1 2 3 4 5
1 2 3 4 5 6
2.f
1 2 3 4 5
1 2 3 4 5 6
2.g
1 2 3 4 5
F. EMPLOYEE SATISFACTION/ WORK ENVIRONMENT
1 2 3 4 5 6
7
1 2 3 4 5
1 2 3 4 5 6
8
1 2 3 4 5
1 2 3 4 5 6
9
1 2 3 4 5
1 2 3 4 5 6
10
1 2 3 4 5
1 2 3 4 5 6
11
1 2 3 4 5
1 2 3 4 5 6
12
1 2 3 4 5

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

6
6
6
6
6
6
6
6
6
6

G. RECENT MAJOR ORGANIZATIONAL CHANGES

1

Yes

No

1.a
2
1.b
H. Working with developing countries
1
2
3
4
5

Yes

N0

6
Yes

No

Thank You for Completing This Survey. Please return this filled out answer sheet using
the reply cover provided to you.
A-67