HINDALCO

SUMMER TRAINING PROJECT REPORT

ON

ANALYSIS OF THE QUALITY PROCEDURES AT HINDALCO INDUSTRIES PVT. LTD.

(POTROOM)

Under the Guidance of

Mr. V.N. UPADHYAY

POTROOM

Hindalco Ind. LTD.

Submitted in partial fulfillment for the award of degree of Master of Business Administration

from Dr. A PJ Abdul Kalam Technical University

BY

PRINCE KUMAR TIWARI

1812470093

2018-2020

INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT, RESEARCH AND TRAINING

21/467, RING ROAD, INDIRA NAGAR, LUCKNOW-226016

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Phone: 2716431, 2716092
Fax: (0522) 2716092
E-mail: info@iccmrt.ac.in
Website: www.iccmrt.ac.in

Institute of Co-operative & Corporate Management,

Research and Training
467, Sector-21, Ring Road, Indira Nagar, Lucknow-226 016
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CERTIFICATE

This is to certify that Name of student, a student of Master of Business Administration (MBA) Programme (Batch
2018-20) at this Institute has undergone a Summer Training in the HINDALCO IND. LTD. From 25 JUN 2019 TO
09 AUG 2019 and carried out a study titled “ANALYSIS OF THE QUALITY PROCEDURES AT
HINDALCO INDUSTRIES PVT. LTD.” He has prepared a report on the study carried out by him in the
organization.

The student has also made a presentation before a panel of experts at the Institute.

Certified

(Dr. K. Anbumani) (Kirti Verma)

Principal, ICCMRT Assistant Professor

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DECLARATION

I hereby declare that the project work entitled “ANALYSIS OF QUALITY PROCEDURE ADOPTED
BY ORGANIZATION” submitted to the INSTITUTE OF CO-OPERATIVE & CORPORATE
MANAGEMENT, RESEARCH AND TRAINING is a record of an original work done by me under the
guidance of Mr. V.N. UPADHYAY and Mrs. KIRTI VERMA, Assistant Professor and this project work
has not performed the basis for the award of any degree or diploma and similar project if any.

PRINCE KUMAR TIWARI

1812470093

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ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the writing of this
project. My deepest thanks to Mr. V.N. UPADHYAY (GENRAL MANAGER, POTROOM),
HINDALCO IND.LTD.RENUKOOT support and guidance. I express my thanks to the Director of Mr.
RAJEEV YADAV, DIRECTOR ICCMRT, Principal of Dr. K.AMBUMANI, for extending his support.

My deep sense of gratitude, thanks and appreciation to the helpful people at Hindalco Ind. Ltd and Mrs.
KIRTI VERMA the Guide of the project for guiding and correcting various documents of mine with
attention and care. She has taken pain to go through the project and make necessary correction as and when
needed for their support. I would also thank my Institution and my faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

PRINCE KUMAR TIWARI

1812470093

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CONTENT

NO. Categories Page

No.
1 Originality Certificate 2
2 Acknowledgement 3
3 Introduction of Aditya Birla Group 5-6
3 Introduction Of Chairman 7
4 Introduction On Managing Director 8
5 About The Company 9-10
6 Board Of Directors List 11
7 Company Leadership Teams 12
8 Business Outlooks 13
9 Products 14-17
10 Competitor Of Hindalco 18-19
11 Competion Share 20
12 Introduction To Topic 21-29
13 Objective 30-32
14 Extraction of Aluminum
15 Sample Preparation and Quality test 34-36
16 SWOT ANALYSIS OF HINDALCO 37-40
17 Conclusion 41
18 Bibliography 42
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INTRODUCTION OF THE TOPIC

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ESTABLISHING A QUALITY PROCEDURE:

Improving quality (reducing bad quality and improving work processes) in a company requires reflection by
both the management and all the employees in order to de ne the reachable goals in terms of quality that can
be accepted by everyone.

A “quality policy” is the general directives and goals in terms of quality that are laid out by a company’s
management and formalized in a written document. The quality policy defines the directives and stakes
pursued in terms of beneficiary satisfaction.

The term “quality procedure” refers to the approach and operational organization used to achieve the goals
set by the quality policy.

Most importantly, an inventory of the company must be taken that can be used to outline its
organization and which clarifies the company’s project:

 The company’s general goals

 The general organization and responsibilities: who does what?

At this stage, a new structuring that takes into account the quality organization can be defined. This
“organizational shake-up” allows companies to redefine their core business and goals and constitutes a
means by which to soften résistance to change. Insofar as the goal of quality is beneficiary satisfaction, it is
essential to properly define the beneficiaries.

Because implementing a quality procedure often requires organizational changes, it must start of by
involving the highest level of the hierarchy. Writing a commitment letter that is signed by management
sets the procedure in stone and legitimizes a quality manager when operational changes are implemented.

A quality procedure hinges on successive action plans that allow a company to pinpoint and formalize short-
term goals and the means by which to meet them. Instituting a quality procedure above all involves
establishing a new spirit that is shared by everyone in the company. Therefore, a successful project depends
largely on the communication surrounding its implementation. So, a communication campaign will allow
employees to learn about the action that has been taken and their place in the company’s project.

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CONCEPTUALIZATION

Human resource is the most important factor for any organization and success of any Organization is
depending upon its resource .If human resource of organization is not happy with the organization. It will
adversely affect the organization.

The higher degree of commitment toward work will improve productivity and will decrease ejection
cause due to human factor.

So to make the people happy is the responsibility of the organization. So this study is helpful to measure
the level of commitment toward work and to know the factor affecting the commitment level. Today,
quality management has become one of the important forces leading to organizational growth and a
company’s success in national and international markets.

To be successful in the marketplace, each part of the organization must work properly together towards
the same goals, recognizing that each person and each activity affects and in turn is effected by others.
To improve competitiveness, organizations are looking for a higher level of effectiveness across all
functions and processes and are choosing TQM as a strategy to stay in business. The increased
awareness of senior executives, who have recognized that quality is an important strategic issue, is
reflected as an important focus for all levels of the organization. This requires defining and
implementing several factors

Many companies are frustrated in their effort to improve quality through TQM because these companies
have exclusively focused on financial measures instead of quality measures. Other studies, in the recent
past also observed the failure of TQM. These failures are due to the too much-too soon e ort without proper
foundation and focus. Manufacturing firms, therefore, need to understand the TQM CSFs for the successful
implementation of TQM. Therefore, there is a pressing need to establish TQM CSFs for manufacturing
rms. This paper examines the TQM frameworks developed by scholars and businesses and develops the
TQM CSFs for manufacturing rms.

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QUALITY

Quality means fitness for use.

 Quality means productivity, competitive cost, and timely delivery, total customer satisfaction.
 Quality means conformance to specification and standard.
 Conformance to requirements.
 Quality is what the customer says

Quality means getting everyone to do what they have agreed to do and to do it right the first time and every
time.

TOTAL QUALITY

It means all the people of the organization are committed to product quality by doing right things right, first
time, every time by employing organization resource to provide value to customer.

TOTAL QUALITY MANAGEMENT

It is the process designed to focus external/internal customer expectation preventing problems building,
commitment to quality in the workforce and promoting to open decision making.

TOTAL
Everyone associated with the company is involved in continuous improvement, in all functional area, at
all level.
QUALITY
Customer express and implied requirement is met fully.

MANAGEMENT

 Executive are fully committed.

 Decision in a planned way.

 To maintain existing lever of quality.

 To improve existing lever of quality.

 Effective utilization of resource.

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PRINCIPLES OF TQM

 Delight the customer

 Management by fact
 People based management
 Continuous improvement
 Strong leadership
 Quality system measure& record
 Team work, Team accountable, correct problem
 People oriented technology, speed.

FOUR C’S OF TQM

1. Commitment 2. Competence

3. Communication 4. Continuous improvement

FACTOR AFFECTED THE COMMITMENT OF THE EMPLOYEES

 General worker attitude toward the company.

 General worker attitude toward the supervisor.

 Lever of satisfaction toward job standard.

 The lever of consideration the supervisor shows to his subordination.

 The workload & work pressure level.

 The treatment of individual by the management.

 The lever of worker’s satisfaction with the salaries.

 The level of worker pride in the company and its activity Worker reaction to the formal
communication network in the organization.

 Intrinsic job satisfaction level of the worker.

 Worker attitude toward the fellow worker.

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UNDERSTANDING TOTAL QUALITY MANAGEMENT (TQM)

Origins of TQM

Total quality management has evolved from the quality assurance methods that were first developed
around the time of the First World War. The war effort led to large scale manufacturing that often produced
poor quality. To help to correct this, quality inspectors were introduced on the production line to ensure
that the level of failures due to quality was minimized. After the First World War, quality inspection
became more common place in manufacturing environments and this led to the introduction of Statistical
Quality Control (SQC), a theory developed by Dr. W. Edwards Deming. This quality method provided a
statistical method of quality based on sampling. Where it was not possible to inspect every item, a sample
was tested for quality. The theory of SQC was based on the notion that a variation in the production
process leads to variation in the end product. If the variation in the process could be removed this would
lead to a higher level of quality in the end product.After World War Two, the industrial manufacturers in
Japan produced poor quality items. In a response to this, the Japanese Union of Scientists and Engineers
invited Dr. Deming to train engineers in quality processes. By the 1950’s quality control was an integral
part of Japanese manufacturing and was adopted by all levels of workers within an organization.

By the 1970’s the notion of total quality was being discussed. This was seen as company-wide quality
control that involves all employees from top management to the workers, in quality control. In the next
decade more non-Japanese companies were introducing quality management procedures that based on the
results seen in Japan. The new wave of quality control became known as Total Quality Management, which
was used to describe the many quality-focused strategies and techniques that became the center of focus for
the quality movement.

Total Quality Management has many definitions. Gurus of the total quality management discipline like
Deming, Juran, Crosby, Ishikawa defined the concept in different ways but still the essence and spirit
remained the same. According to Deming, quality is a continuous quality improvement process towards
predictable degree of uniformity and dependability. Deming also identified 14 principles of quality
management to improve productivity and performance of the organization. Juran defined quality as “fitness
for use.” According to him, every person in the organization must be involved in the e ort to make products
or services that are not for use. Crosby defines quality as conformance to requirements. His focus has been
on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control
to improve organizational performance. According to him quality does not only mean the quality of product,
but also of after sales service, quality of management, the company itself and the human life. Feigenbaum

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defined total quality as a continuous work processes, starting with customer requirements and ending with
customer’s satisfaction.

Definitions of quality have changed with the passage of time with changing customer’s needs and
requirements. But the essence has more or less been to develop an approach to problem solving,
conformation to standards for customer satisfaction. With management functions getting complex,
approaches to managing quality in functional areas are becoming difficult. Organizations, which have
successfully use TQM principles, have customer and quality embedded in their corporate strategy. Any
organization is a system of interrelated units. For TQM to succeed, all of the components within the
organization must be collectively involved. Initially, organizations implemented TQM in the hope that
improvement in the shop activities would solve all existing productivity and quality problems.

Later, they have realized that TQM is much more than just shop improvements. The definitions of quality
incorporate factors like top management commitment, leadership, team work, training and development,
rewards and recognition, involvement and empowerment of employees etc. These critical factors are the
foundation for transformational orientation to create a sustainable improvement culture for competitive
advantage on a continuous basis.

According to Selladurai Raj, TQM interventions or activities must be guided by four change principles,
namely work processes, variability, analysis, and continuous improvement. Product design and
production processes must be improved; variance must be controlled to ensure high quality; data must be
systematically collected and analyzed in a problem-solving cycle; and commitment made to continuous
learning by the employees about their work.

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SELECTION AND ANALYSIS OF TQM FRAMEWORKS

An extensive literature survey has been carried out to select TQM frameworks for this study. The relevant
literature has revealed that different countries have adopted similar TQM frameworks in the form of quality
awards with a different title. Today, there are more than a hundred quality awards existing in different
countries. However, all these quality awards are basically derived from three basic and prestigious awards:
the Malcolm Baldrige National Quality Award (MBNQA), the European Quality Award (EQA) and the
Deming Prize. This study, therefore, includes only these three basic awards as TQM frameworks along with
other frameworks developed by scholars. Furthermore, through the study of TQM literature, eleven TQM
frameworks developed by researchers have been selected .In total, fourteen important TQM frameworks viz.

The Cost of TQM

Many companies believe that the costs of the introduction of TQM are far greater than the benefits it will
produce. However research across a number of industries has costs involved in doing nothing, i.e. the direct
and indirect costs of quality problems, are far greater than the costs of implementing TQM.

The American quality expert, Phil Crosby, wrote that many companies chose to pay for the poor quality
in what he referred to as the “Price of Nonconformance”. The costs are identified in the Prevention,
Appraisal and Failure (PAF) Model.

Prevention costs are associated with the design, implementation and maintenance of the TQM system.
They are planned and incurred before actual operation, and can include:

Product Requirements – The setting specifications for incoming materials, processes, finished
products/services.

Quality Planning – Creation of plans for quality, reliability, operational, production and
inspections.

Quality Assurance – The creation and maintenance of the quality system.

Training – The development, preparation and maintenance of processes.

Appraisal costs are associated with the vendors and customers evaluation of purchased materials and
services to ensure they are within specification. They can include:

Verification – Inspection of incoming material against agreed upon specifications.

Quality Audits – Check that the quality system is functioning correctly.

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Vendor Evaluation – Assessment and approval of vendors.

Failure costs can be split into those resulting from internal and external failure. Internal failure costs occur
when results fail to reach quality standards and are detected before they are shipped to the customer. These
can include:

Waste – Unnecessary work or holding stocks as a result of errors, poor organization or communication.

Scrap – Defective product or material that cannot be repaired, used or sold.

Failure Analysis – This is required to establish the causes of internal product failure.

External failure costs occur when the products or services fail to reach quality standards, but are not detected
until after the customer receives the item. These can include:

Repairs – Servicing of returned products or at the customer site.

Warranty Claims – Items are replaced or services re-performed under warranty.

Complaints – All work and costs associated with dealing with customer’s complaints.

Returns – Transportation, investigation and handling of returned items.

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MODELS OF TQM

These models are presented in brief, because many of the concepts are already discussed above and these
models have put different emphasis on some of these concepts. Only where some new point is brought in the
model, it is discussed in details.

1. Seven characteristics of total quality by Feigenbaum

 Systematic Process, extending throughout the company.

 Quality process in the organization must be correctly structured. Else Everybody’s job is Nobody’s
Job.
 Total Quality improvement must take place from Marketing to After Sales Service covering
all aspects of the business.
 Emphasis on what buyer wants.
 Application of new Technologies.
 Participation of ALL – not just Specialists.
 Company must establish clear Customer Oriented Quality Management System, which people
should understand and want to be part of.
2. Oakland’s Model
The Customer — Supplier chains, both within and outside the organization are considered as central to TQM
around which the other features are interwoven. Oakland’s 13 states representing gradual progression
towards implementation of TQM based culture:

(i) Understanding Quality

(ii) Commitment to Quality
(iii) Policy on Quality
(iv) Organization for Quality
(v) Measuring Costs of Quality
(vi) Planning for Quality
(vii) Design for Quality
(viii) System for Quality
(ix) Capability for Quality
(x) Control for Quality
(xi) Team Work for Quality
(xii) Training for Quality
(xiii) Implementation of TQM

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How does TQM Create an Environment that Promotes Quality?

TQM is more than just a philosophy. In addition to proposing new theories about the workplace, it advocates
specific changes that managers need to make if they want to improve the system. These changes are best
described in Deming’s “14 Points,” which are condensed under the four categories below:

Customer Relationships: Customers can be either internal or external to an organization. Just as a customer
is the person buying a product in a store, an employee is the customer of management. Managers need to
realize that quality work will not be done unless they provide employees with quality products to work with
(Blankstein 1992).

Employee Empowerment: TQM starts at the top but should permeate the workplace the fact is that it will fail
without employee involvement. Since workers know more about their jobs than management does, their
input is vital to improving the system. It is a manager’s responsibility to continuously train employees in the
methods of TQM, involve them in management decisions, listen to their suggestions for system changes, and
work towards implementing those changes (Schmoker 1992).

Continual Gathering and Use of Statistical Data: Most companies monitor the quality of their products by
doing mass inspections that determine how many low-quality items are being produced, but Deming calls
for monitoring of the production process by continually gathering statistical data so that problems can be
identified as they are happening instead of when it is too late to solve them. When problems are identified,
they should be the focus of discussion, and the groups discussing them should rely on the data to institute
change instead of randomly assigning blame to individuals or departments (Deming).

Create an Environment that Promotes Unity and Change: People need to feel comfortable discussing
problems and suggesting solutions. Managers need to work at breaking down barriers between departments
so that interactive discussion can take place. Fear must be eliminated. Also, managers are urged to do away
with slogans, quotas, goals, and objectives since they encourage competition between workers and put the
focus on individual results rather than process (Deming).

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THE TQM VISION

The quality cycle begins and ends with the user. It starts when the user’s need is analyzed to design a
product. During the development & manufacture of that product, various departments and sections of the
company make their contributions in building quality into it. The cycle ends with the user because the nal
proof of the product quality comes during its use by the user, whose “delight” is the ultimate aim of this
concept. Quality is no longer the exclusive domain of the inspectors, manufacturers and pharmacists. Even
Sales personnel have their role to play in the achievement of the primary objective of quality.

Quality Management, as does any management process, has three main components:

 Quality Planning – Designing the desired & deliverable quality standards.

 Quality Implementation.
 Quality Monitoring & control.

It is imperative that TQM efforts should be properly organized to co-ordinate the various contributing
aspects of quality. As such we need to know the basic ideas behind TQM. Organizations are made up of a
complex system of customers and suppliers. People pay attention to who supplies them; with what they need
to do their job and who the customer is for what they produce. When everybody becomes concerned about
meeting their customers’ requirements, quality will be there, without doubt. In meeting customer
expectations the focus must be on the process, not just on the results. To improve a process it is important to
look at the socio-cultural issues of organization to create a healthy, open atmosphere in which people are
willing to open up and do some introspection on their processes. And this is something the management
must be able to facilitate.

In contrast to traditionally managed organization, TQ managed organizations believe that, though there is no
complaint from the customers, there is always scope for improvement. Everybody in the organization is
trained to plan & participate in groups. Meetings & Brain storming sessions become primary vehicles for
planning & creative problem solving. Each member in the team is recognized & rewarded. Errors and
problems are viewed as opportunities for learning rather than blunders to be punished.

In the recent past, TQM got its formal recognition by way of ISO 9000. In order that organizations may
successfully compete with world-class leaders, it is imperative to look at and be prepared for quality way
beyond the popular ISO 9000.

In the context of the Indian organization, the common perception held is that quality improvement is
uneconomical since it increases cost and investment, thereby decreasing productivity. Traditional Indian
managers are not prepared for intense global competition where quality, cost, and sticking to the deadlines
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and customer satisfaction are of paramount importance. They are not prepared to shed the belief that they
can get business by cornering licenses, influencing the bureaucrats.

Domestic managers are unaware of the momentous changes taking place. Ironically even today most
Indian managers rely more on market gossip and collecting random data than paying an accredited
agency for factual information.

Indian companies should wake up to the realities and try to build up an organization where information ows
freely; employees are empowered with decision-making and problem solving, where teamwork is awarded
and encouraged. Our executives have to learn how to become successful quality managers, so that they can
become global managers and this primarily means change in their mindset.

Sustainable Development of TQM

Sustainability is defined as ‘the ability of an organization to adapt to change in the business environment to
capture contemporary best practice methods and to achieve and maintain superior competitive performance’
describes sustainability as the development that meets present needs without compromising the ability of
future generations to meet their own needs. Without sustainability, there is little benefit to be gained from
TQM. Ahmed et al. (2002) reported that many organizations jumped on the TQM bandwagon thinking that
if they copy the tools and techniques, they will reap the benefits of TQM. The findings of their study
suggested that the social systems can not be ignored; rather both social and technical systems need to be
developed simultaneously for sustainability of TQM. The following symptoms for TQM process not
working.

 The results are not visible

 The organization changes priorities often and as a result quality decreases.
 Top management commitment is not seen and is not felt;

Middle management does not know precisely what is expected of them in relation to the TQM process
Low degree of employee involvement.

In the present context, there is a need to develop a TQM sustainability methodology that clearly de nes the
steps to be taken by the organizations for effective long term implementation of TQM. This is attempted in
the present study by using Deming’s Plan-Do-Study-Act (PDSA) cycle. This approach is unique and can be
customized to suit the requirements of individual user as explained in the methodology section.

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PDSA Cycle for Sustainable Development of TQM

The Deming’s PDSA cycle is a well-known model for continual process improvement. It teaches
organizations to plan an action, do it, study to see how it conforms to the plan and act on what has been
learned.

The terms are defined below.

Step 1: Plan Recognize an opportunity, and plan the change.

Step 2: Do Implement the change.

Step 3: Study Review the implementation, analyze the results and identify learning.

Step 4: Act Take action based on what you learned in the step 3. If the change was successful,

Incorporate the learning from the test into wider changes. If not, go through the cycle again.

The PDSA cycle for sustainable development of TQM shown in Fig. 1 is made up of four steps.

PDSA Cycle for sustainable development of TQM

ACT PLAN

Step 2: Implement TQM

STUDY

Step 3: Study and measure the level of TQM implementation

DO

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TQM TECHNIQUES

Benchmarking
For many companies benchmarking has become a component of their TQM Programme.
In most developing countries like India, until recently almost all the industries had a few number of products
and services, which differed markedly in their utilitarian characteristics. However, such a situation is hardly
sustainable with increasing competition from foreign goods and services. In such a situation, competing
firms have to continuously improve. The benchmarking approach not only provides a comparative profile,
but also helps the management to identify innovative products and services.”Benchmarking is a continuous
process of measuring one’s products, services & practices against toughest competitors”. It will search for
the best practices in the industry, which will lead to superior quality goods. With the growing emphasis on
quality, it has got great significance in the present competitive world.
If best practices are followed, customer requirements can easily be met, leading to increasing profitability of
the company. But the employees resist change in the beginning because they are habituated to old processes.
Efforts to change mindset of employees must vigorously continue till desired effect is achieved.
Business Process Reengineering
Business Process Reengineering generally redesigns processes & the organization that performs
them in order to reduce the number of boundaries crossed. Each time a process crosses an
organizational boundary, opportunities for errors arise. Business Process Reengineering is the
fundamental rethinking and radical redesign of Business Processes to achieve dramatic
improvements in critical contemporary measures of performance, such as cost, quality, service and
speed.
Precautions
Wherever the responsibility of quality management is to be delegated to different departments, it should be
done with many precautionary measures, thereby ensuring monitoring & control is in the hands of quality
management people. The hierarchy structure of quality management should be kept to as few levels as
possible and the span of control should be as broad as possible.
As the traditional organizations are unable to meet the present challenges, there is every need for new
techniques & philosophies with which organizations can survive and thrive under grueling competition.
QUALITY MEASUREMENT TECHNIQUES
Quality measurement technique is based on a set of activities, used on an ongoing and continual basis, to
measure performance in terms of meeting identified customer needs and satisfiers.
Quality measurement is concerned with the perception of customers and levels of satisfaction and how to use
those measurements in the design of a product or service and/or to track the achievement of activity goals.

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Purpose
The purpose of quality measurement technique is to identify the indicators needed to measure customers’
perceptions of the enterprise, in terms of quality or performance and to establish a measurement process that
is consistent with measuring objectives, targets, and goals set out in the reinvented value stream or
redesigned process.
Benefits
The benefit of using quality measurement technique is that it establishes a framework for quality
measurement and continuous improvement and provides a reliable and objective basis for decision making
based on objective analysis of performance. Six Sigma is a business management strategy originally
developed by Motorola, USA in 1986. As of 2010, it is widely used in many sectors of industry.
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects
(errors) and minimizing variability in manufacturing and business processes. It uses a set of quality
management methods, including statistical methods, and creates a special infrastructure of people within the
organization (“Black Belts”, “Green Belts”, etc.) who are experts in these methods. Each Six Sigma project
carried out within an organization follows a defined sequence of steps and has quantified financial targets
(cost reduction and/or profit increase).
The term Six Sigma originated from terminology associated with manufacturing, specifically terms
associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process
can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A
six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be
free of defects (3.4 defects per million). Motorola set a goal of “six sigma” for all of its manufacturing
operations, and this goal became a byword for the management and engineering practices used to achieve it.

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OPERATIONS MANAGEMENT

Operations management focuses on carefully managing the processes to produce and distribute products and
services. Major, overall activities often include product creation, development, production and distribution.
(These activities are also associated with Product and Service Management.) Related activities include
managing purchases, inventory control, quality control, storage, logistics and evaluations of processes. A
great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often
includes substantial measurement and analysis of internal processes. Ultimately, the nature of how
operations management is carried out in an organization depends very much on the nature of the products or
services in the organization, for example, on retail, manufacturing or wholesale.

Companies spend millions wringing every bit of inefficiency from supply chains. But, there is a hidden trove
of efficiency and value that leading companies are just beginning to consider. Supply chain migration from
lean and functional to agile and customized. Improving, supply-chain management to gain a competitive
edge. A misaligned supply chain can lead to higher costs, lower quality and poor customer service. An
Investigative Study in Small and Medium Enterprises. It appears that the notions on supply chain
management may only be indirectly associated with the issues surrounding consumer behaviors toward
maintaining and/or otherwise pushing customer satisfaction. The forces of globalization and ever attening
world are exerting renewed pressure on global supply chains. It is time that organizations counter supply
chain disruptions by building solid ‘sense and respond’ capabilities. Four cardinal principles for maximizing
payback from supply chain technology investments. This paper examines the impact of e-business on supply
chain integration on four critical impacts of e-business on supply chain integration on four critical
dimensions.

The complexities of getting material ordered, manufactured and delivered overload most supply chain
management (SCM) systems. Eradicating the “high-inventory-poor-service-level” problem. Unlocking
Value from E-Supply Management. Despite the “e,” e-supply management is about much more than
technology. Five steps can help businesses make the most of their e orts. A few farsighted nance executives
are managing their supply chain as a virtual corporation, finding innovative ways to reduce costs and
increase earnings. Flow Manufacturing is Essential to Competitive Supply Chain Management. Many
companies are not aware of how their supply chains are performing or even what supply chain they’re in.
Specific assessment criteria based on the Six Levels of Supply Chain Excellence and a strategic assessment
methodology can help them determine how their supply chain is performing and thus plot a course for
improvement. Major shifts in global business conditions are radically altering input costs and risk. In
response, companies must realign their supply chains, including: rethinking product formulation and
packaging, restructuring the supply chain network and footprint, and realigning the role of suppliers and
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HINDALCO

third parties. Now that Supply Chain Management has entered the consciousness of manufacturing
managers, we are experiencing the inevitable rush to apply a software solution to implementation of a fully
integrated chain of activities from the top to the bottom of the materials But supply chain management is
much more than software.

Focus of the problem

The main emphasis will be on to find out quality employee’s commitment towards their work as a result of
total quality implementation.

Review of Existing literature

Many people have work on this topic. They sum up various finding. They found that apply TQM has directly
increased their morale; increase the satisfaction level and commitment towards their work. These are the
finding of various researchers.

Several articles have been published in different journals, magazines and newspaper such as
HARVARD BUSINESS REVIEW, THE ECONOMIC TIMES, VIKALPA etc. But the effect of
TQM on employee’s commitment in the company has so far not undertaken.

LIMITATION

 Employees of the organization may hide the fact.

 The management did not agree to disclose all the confidential data.

Quality Management

A quality procedure is the most important factor for any organization and success of any Organization is
depending upon its resource. If human resource of organization is not happy with the organization. It will
adversely affect the organization.

The higher degree of commitment toward work will improve productivity and will decrease
rejection cause due to human factor.

So to make the people happy is the responsibility of the organization. So this study is helpful to measure
the level of commitment toward work and to know the factor affecting the commitment level.

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HINDALCO

REVIEW OF LITERATURE

The literature for review to be collected from secondary sources such as magazines, articles, reports,
budgets, news paper etc to highlight the problems and findings of the study done by many research and
business professionals to understand the significance of the Quality process of the companies. The objectives
of the proposed topic have to be formulated based on the previous study by the many research professionals.
Approximately ten to fifteen reviews has to be collected and presented in my project report.

Quality is never an accident. It is always the result of high intentions, sincere efforts, intelligent direction and
skillful execution. It is an attribute or characteristic whose dictionary meaning is the degree of goodness or
worth of a person, place or thing.

In determining the quality of a product, the customer’s expectations about the product will be given the top
most priority. In the present scenario, customer delight is the need of the hour in order to survive the
cutthroat competition.

There are different approaches through which the concept of quality can be under stood. According to the
product-based approach, quality is an attribute, which can be measured quantitatively. The manufacturing
based approach on the other hand, uses universal definition of conformance to requirements. The value-
based approach says that the consumer purchase decision is based on consistent quality at an affordable
price.

W. Edwards Deming defines quality as: “Pride in Workmanship” Dr. J. Juran defines quality as:

“those product features which meet the needs of customers and thereby provide product satisfaction.” or
“freedom from deficiencies.”

Kaoru Ishikawa defines quality as: “total quality control, Japanese style, is a thought revolution in
management.” Gary Griffith, in his book “The Quality Technician’s Handbook,” defines quality as: “the
totality of features and characteristics of a product or service that bear on its ability to satisfy given needs.”

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HINDALCO

Total Quality Management

Total Quality Management is a management approach that originated in the 1950’s and has steadily become
more popular since the early 1980’s. Total Quality is a description of the culture, attitude and organization of
company that strives to provide customers with products and services that satisfy their needs. The culture
requires quality in all aspects of the company’s operations, with processes being done right the first time and
defects and waste eradicated from operations. Total Quality Management, TQM, is a method by which
management and employees can become involved in the continuous improvement of the production of goods
and services. It is a combination of quality and management tools aimed at increasing business and reducing
losses due to wasteful practices. Some of the companies, which have implemented TQM, include Ford
Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

Although no two businesses use TQM in exactly the same way, its theory rests on two basic tenets. The first
and most important is that customers are vital to the operation of the organization. Without customers, there
is no business, and without business, there is no organization. Consequently, it should be the primary aim of
any group to keep customers satisfied by providing them with quality products (Deming 1986).

These ideas are not foreign to most organizations. What makes TQM unique is its call for a restructuring of
management methods to create that quality. TQM proponents urge organizations to turn nearsighted, top-
down management “on its head” by involving both customers and employees in decisions. This second tenet,
that management needs to listen to nontraditional sources of information in order to institute quality, is based
on the belief that people want to do quality work and that they would do it if managers would listen to them
and create a workplace based on their ideas (Deming).

Managers, in the TQM view, need to become leaders who “not only work in the system but also on the
system” (Rocheleau 1991). A company will see continuous improvement in products only when managers
realize all systems consist of interdependent parts and work to aim all those parts toward a vision of quality.
This type of leadership is needed to ensure that product quality improves constantly and forever and truly
satisfies the customers (Deming).

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HINDALCO

Some useful messages from results of TQM implementations

if you want to be a first-rate company, don’t focus on the second-rate companies who can’t handle TQM,
look at the world-class companies that have adopted it the most effective way to spend TQM introduction
funds is by training top management, people involved in new product development, and people involved
with customers It’s much easier to introduce EDM/PDM in a company with a TQM culture than in one
without TQM. People in companies that have implemented TQM are more likely to have the basic
understanding necessary for implementing EDM/PDM. For example, they are more likely to view
EDM/PDM as an information and workflow management system supporting the entire product life cycle
then as a departmental solution for the management of CAD data Important aspects of TQM include
customer-driven quality, top management leadership and commitment, continuous improvement, fast
response, actions based on facts, employee participation, and a TQM culture.

Customer-driven quality

TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first.
Customer satisfaction is seen as the company’s highest priority. The company believes it will only be
successful if customers are satisfied. The TQM Company is sensitive to customer requirements and responds
rapidly to them. In the TQM context, `being sensitive to customer requirements’ goes beyond defect and
error reduction, and merely meeting specifications or reducing customer complaints. The concept of
requirements is expanded to take in not only product and service attributes that meet basic requirements, but
also those that enhance and differentiate them for competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to some functions and as a
supplier to others. The Engineering Department is a supplier to downstream functions such as Manufacturing
and Field Service, and has to treat these internal customers with the same sensitivity and responsiveness as it
would external customers.

TQM leadership from top management

TQM is a way of life for a company. It has to be introduced and led by top management. This is a key

point. Attempts to implement TQM often fail because top management doesn’t lead and get

committed – instead it delegates and pays lip service. Commitment and personal involvement is

required from top management in creating and deploying clear quality values and goals consistent

with the objectives of the company.

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HINDALCO

Continuous improvement

Continuous improvement of all operations and activities is at the heart of TQM. Once it is recognized that
customer satisfaction can only be obtained by providing a high-quality product, continuous improvement of
the quality of the product is seen as the only way to maintain a high level of customer satisfaction. As well
as recognizing the link between product quality and customer satisfaction, TQM also recognizes that product
quality is the result of process quality. As a result, there is a focus on continuous improvement of the
company’s processes. This will lead to an improvement in process quality. In turn this will lead to an
improvement in product quality, and to an increase in customer satisfaction. Improvement cycles are
encouraged for all the company’s activities such as product development, use of EDM/PDM, and the way
customer relationships are managed. This implies that all activities include measurement and monitoring of
cycle time and responsiveness as a basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous improvement approach. There is also a strong
emphasis on prevention rather than detection, and an emphasis on quality at the design stage. The customer-
driven approach helps to prevent errors and achieve defect-free production. When problems do occur within
the product development process, they are generally discovered and resolved before they can get to the next
internal customer.

Fast response

To achieve customer satisfaction, the company has to respond rapidly to customer needs. This implies short
product and service introduction cycles. These can be achieved with customer-driven and process-oriented
product development because the resulting simplicity and efficiency greatly reduce the time involved.
Simplicity is gained through concurrent product and process development. Efficiencies are realized from the
elimination of non-value-adding effort such as redesign. The result is a dramatic improvement in the elapsed
time from product concept to first shipment.

According to Armand V. Feigenbaum in 15 JAN 2002

Technical capability is no longer the principal competitive determinant in the computer and software
industry. Technical capability is necessary but not sufficient for success. What differentiate the successful
from the unsuccessful organization, today, in superior “world-class” systems of work processes that men and
women throughout the organization understand, believe in and are a part of. These systems of clear work
processes reduce bureaucracy and cycle times, increase responsiveness and innovation, and lower costs
thereby assuring product, market and organizational success.

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HINDALCO

According to Richard Hackman , Ruth Wageman in 2002

In recent years, total quality management (TQM) has become something of a social movement in the United
States. This commentary returns to the writings of the movement’s founders–W. Edwards Deming, Joseph
Juran, and Kaoru Ishikawa–to assess the coherence, distinctiveness, and likely perseverance of this
provocative management philosophy. We identify a number of gaps in what is known about TQM processes
and outcomes and explore the congruence between TQM practices and behavioral science knowledge about
motivation, learning, and change in social systems. The commentary concludes with a prognosis about the
future of TQM–including some speculations about what will be needed if TQM is to take root and prosper in
the years to come. It has now been a decade since the core ideas of total quality management (TQM) set
forth by W. Edwards Deming, Joseph Juran, and Kaoru Ishikawa gained significant acceptance in the U.S.
management community. In that decade, TQM has become something of a social movement. It has spread
from its industrial origins to health care organizations, public bureaucracies, nonprofit organizations, and
educational institutions. It has become increasingly prominent in the popular press, in the portfolios of
trainers and consultants, and, more recently, in the scholarly literature. Institutions specifically chartered to
promote TQM have been established, and a discernible TQM ideology has developed and di􀁼used
throughout the managerial community. And, in its maturity, TQM has become controversial–something
who’s worth and impact people argues about. Dr. Armand Feigenbaum is the originator of total quality
control (TQC), the management approach that has profoundly influenced the competition for domestic and
international markets in the United States, Japan and throughout the industrialized world.

According to Quazi, Hesan A, Padibjo, Samuel R in Number 5th, 1998:

Literature review highlights the importance of TQM for SMEs to improve their current business practices as
well as quality of products and services, to ensure long-term survival. However, there are several barriers to
effective implementation of TQM in such organizations, namely, the apparent lack of business experience
and knowledge, and limitation of financial as well as human resources. Singaporean SMEs account for a
large share of its economy, however, little has been written on how TQM has been applied in these
companies in Singapore and the region. This paper reports the results of a pilot study conducted among a
sample of local SMEs. The findings are compared to an earlier work done in Singapore. Furthermore, this
paper reports the findings of follow-up interviews with some local SMEs regarding the perceived benefits of
and barriers to ISO 9000. Based on the experience in Singapore, ISO 9000 certification has provided
significant benefits for SMEs. The journey towards TQM will, however, require not only full commitment of
the company management, but also a quality culture created externally by the government which is crucial to
the progress beyond ISO 9000.

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According to Sanjay Ahire, Robert Landeros in 2009

Total quality management is a revolutionary approach to effective management. The research in TQM has
emerged from practical needs of organizations embracing this philosophy, and the literature is mostly
conceptual and practitioner-oriented. There is a lack of sound theoretical framework classifying past e􀁼orts
and guiding future research. To fill the void, a study of the published TQM literature is undertaken. A
review, classification, and analysis of the research in TQM spanning the last two decades is presented. A
total of 226 TQM-related articles are identified from 44 refereed management journals published from 1970
to 1993. These articles are then classified and analyzed using the following two-dimensional scheme: (1)
article orientation article focus using the Malcolm Baldrige National Quality Award criteria. The analysis of
the literature presents pertinent developments in each of the seven criteria. In addition, it provides future
research directions as well as a ready reference of the TQM literature. The suggestions for research should
guide future developments in the TQM field and help transform it into a formal discipline.

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HINDALCO

COMPANY’S PROFILE

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HINDALCO

Hindalco Industries Ltd

Type Public

Traded as BSE: 500440

NSE: HINDALCO
BSE SENSEX Constituent

ISIN US4330641022

Industry Metals

Founded 1958; 61 years ago[1]

Headquarters Mumbai, Maharashtra India

Area served Worldwide

Key people Kumar Mangalam Birla (Chairman)

Products Aluminum and copper products

Revenue ₹130,542 crore (US$19 billion) (2019)[2]

Operating income ₹8,083 crore (US$1.2 billion) (2019)[2]

Net income ₹5,495 crore (US$790 million) (2019)[2]

Total assets ₹152,631 crore (US$22 billion) (2019)[2]

Number of employees 40,000 (2018)[3]

Parent Aditya Birla Group

Website www.hindalco.com

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ADITYA BIRLA GROUP

Aditya Birla group, with the turnover of over US $ 40 billion and 136,000 employees, is among top three
leading business houses in India. The Group has been ranked Number 4 in the global ‘Top Companies for
Leaders’ survey and ranked Number 1 in Asia Pacific for 2011. ‘Top Companies for Leaders’ is the most
comprehensive study of organizational leadership in the world conducted by Aon Hewitt, Fortune Magazine,
and RBL (a strategic HR and Leadership Advisory firm).The Aditya Birla group is India’s first truly MNC
whose over 30% of revenues flow from its operations across the world.

.
“ADITYA VIKRAM BIRLA”

The group is transactional conglomerate with 72 state-of-the-art manufacturing units and sectorial span, in
India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia, China. (36 countries) Over 66
units in India as well as abroad (in Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia,
China) and international trading operations spanning several countries included Singapore, Dubai, Russia,
Vietnam, Myanmar, and China make it India’s first truly multinational conglomerate.

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HINDALCO

Aditya Birla Group is an Indian multinational conglomerate, headquartered in Worli, Mumbai, India. It
operates in 34 countries with more than 120,000 employees worldwide. The group was founded by Seth
Shiv Narayan Birla in 1857. The group has interests in viscose staple fibre, metals, cement, and viscose
filament yarn, branded apparel, carbon black, chemicals, fertilisers, insulators, financial services, and
telecom. The group had revenue of approximately US$48.3 billion in year 2019. It is the third-largest Indian
private sector conglomerate behind Tata Group with revenue of just over US$110 billion and RIL with
revenue of US$90 billion.

Non-ferrous metals

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. Hindalco is the
world's largest aluminium rolling and recycling company, and a major copper player. It is also one of Asia's
largest producers of primary aluminium. Its wholly owned subsidiary Novelis Inc. is the world's largest
producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).
Hindalco's copper facility in India comprises a world-class copper smelter, downstream facilities, a fertiliser
plant and a captive jetty. The copper smelter is among one of the world's largest custom smelters at a single
location.

Locations

Hindalco's manufacturing facilities span 10 countries – India, US, Canada, Brazil, Germany, UK,
Switzerland, Italy, China and South Korea.

Products

Hindalco's aluminium business manufactures primary aluminium and diverse aluminium downstream
offerings – extrusions, flat-rolled products, foils, wire rods, billets, etc. that find application in various
industries ranging from automobiles to packaging and pharmaceuticals.

Hindalco's copper business produces copper cathodes, continuous cast copper rods (CCR) in various sizes
for wire, cable and transformer industries. It also manufactures copper tubes for consumer durable goods and
other applications in the form of alloys and sheets. The bi-product sulphuric acid is used to produce
phosphoric acid and value-added fertilisers like di-ammonium phosphate (DAP).

Hindalco Industries Ltd. an Indian aluminum and copper manufacturing company, is a subsidiary of
the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. It is the Flagship Company of
the company in the metals business.

The company has annual sales of US$ 15 billion and employs around 20,000 people. It is listed in the Forbes
Global 2000 at 895th rank. Its market capitalization by the end of May 2013 was US$ 3.4 billion.
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HINDALCO

Cement

The Group's cement business was earlier under Grasim Industries and UltraTech Cement. The two entities
have now been merged into UltraTech Cement to form India's largest cement company. UltraTech Cement
was acquired from L&T in 2004.

Carbon black

Birla Carbon is a leading global supplier of carbon black. As one of the flagship businesses of Aditya Birla
Group, Birla Carbon provides innovative sustainable carbon black solutions that enhance the performance of
paints and coatings, inks and toners, plastics, adhesives, sealants, textile fibers, mechanical rubber goods and
tires. The company's footprint extends across 12 countries with 16 manufacturing facilities and two state-of-
the-art technology centers in Marietta and Taloja, providing industry leading innovation. Its Sustainable
Operational Excellence strategy focuses on employee safety, environmental stewardship, efficient use of
carbon sources and operating in a socially and ethically responsible manner.

Textile business

Aditya Birla Group. The Aditya Birla Group is the world's largest producer of Viscose staple fibre. It
operates from India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart from
viscose staple fibre, the group also owns acrylic fibre business in Thailand, viscose filament yarn businesses
and spinning mills in India and South East Asia. The group has pulp and plantation interests in Canada and
Laos. It also owns the Domsjo factory in Sweden which exports viscose today. The Swedish government is
hoping to negotiate further investments in Sweden, in particular in the hyper-modern future bio refinery in
the city. Its two companies i.e. Aditya Birla Nuvo Ltd and Grasim Bhiwani Textiles Ltd which is a
subsidiary of Grasim Industries are in textile business. Grasim Industries was recently placed 154th in a list
of the world's best regarded firms compiled by Forbes.

Fashion

Aditya Birla Fashion and Retail Limited, with revenue of Rs. 8,118 cr. spanning retail space of 7.5 million
sq. ft. (as on March 31, 2019), it is India’s first billion-dollar pure-play fashion powerhouse with an elegant
bouquet of leading fashion brands and retail formats. As a fashion conglomerate, ABFRL has a strong
network of 2,714 brand stores across 750 cities in the country. It is present across 18000+ multi-brand
outlets and 5000+ point of sales in department stores across India. It has a repertoire of leading brands such
as Louis Philippe, Van Heusen, Allen Solly and Peter England established for over 25 years. Pantaloons is
one of India’s largest value fashion store brand.

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HINDALCO

Telecom Services

Idea Cellular was started as a joint venture of Aditya Birla Group with the AT&T and the Tata Group, which
was widely also known as, BATATA (Birla+AT&T+Tata) . After an IPO on the Indian stock markets, Idea
Cellular now accounts for a third of the group's market capitalisation. The company is headquartered in
Mumbai. On 31 August 2018 Idea Cellular completed its merger with Vodafone India and thereby became
largest telecom company in terms of subscribers and revenue, surpassing Airtel.

Financial services

Aditya Birla Capital is the umbrella brand for all the financial services business of the Aditya Birla Group.
Aditya Birla Capital is the holding company for Aditya Birla Finance Limited, Aditya Birla Health
Insurance Limited, Aditya Birla Housing Finance Limited, Aditya Birla Insurance Brokers Limited, Aditya
Birla Money, Aditya Birla My universe Limited, Aditya Birla PE Advisors Limited, Aditya Birla Sun Life
Asset Management Company, Aditya Birla Sun Life Insurance, Aditya Birla Sun Life Mutual Fund, Aditya
Birla Sun Life Pension Management Limited and Aditya Birla Asset Reconstruction Company Limited.
ABFSG ranks among the top 5 fund managers in India with an AUM of US$23 billion. Having a strong
presence across the life insurance, asset management, lending , housing finance, equity & commodity
broking, wealth management and distribution, online money management portal—Aditya Birla Money My
Universe, general insurance advisory and private equity and health insurance businesses. In FY 2013–14,
ABFSG reported consolidated revenue from these businesses at just under ₹70 billion and profits of
about ₹7.5 billion . The financial services arm of the group is currently headed by Ajay Srinivasan.

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HINDALCO

The Aditya Birla group enjoys a front runner position

Globally
A metals powerhouse among the world’s most cost efficient Aluminum and copper producers. Hindalco
novelis from its fold in fortune 500 company. It is the largest Aluminum rolling company
 It ranks as No.1 in viscose staple fiber
 The largest single location palm oil producer
 The third largest producer of insulators
 The third largest producer of carbon black
 The eleventh largest producer of cement and the largest in single geography
 The largest single location copper smelter
 Among the world’s top 15 BPO’s and among India’s top three
 Among the best energy efficient fertilizer plants
 The largest Indian MNC with manufacturing operations in the USA

IN ASIA
 The largest integrated aluminum producer
 Among the best energy-efficient fertilizer plants in Asia

IN INDIA

 A premier branded garment player

 The second largest chore – alkali sector
 Among the top five mobile communication company
 Among the top three supermarket chains in the retail market
 Second largest player of viscous filament yarn
 Second largest private sector insurance company and a leading assists management company
 Among the top 6 BPO companies
GROUP VISION
“To be the premium metals major, global in size and reach, with a passion for excellence”
GROUP MISSION
“To relentlessly pursue the creation of superior shareholder value by exceeding customer expectations
profitability, unleashing employee potential and being a responsible corporate citizen adhering to our
values.”

GROUP VALUES
“Integrity, Commitment, Passion, Seamlessness, Speed”

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HINDALCO

THE CHAIRMAN’S LETTER TO SHAREHOLDERS GLOBAL ECONOMY

Kumar Mangalam Birla (Chairman of the Aditya Birla Group)

The global economy is on a rebound. The International Monetary Fund (IMF) estimates indicate that the
global real GDP grew 3.8% in CY17. This is the highest growth pace over the last six years. It is also the
broadest synchronized global growth upsurge since CY10 as underlined by the IMF. This impetus from a
supportive monetary policy was further buoyed by a revival of investment spending in advanced economies.
The expansionary fiscal and monetary policies in the US led to improved growth prospects. The US grew at
2.3% in CY17 as against 1.5% in CY16. Growth accelerated in Europe and Asia too. The global economic
recovery is expected to continue. For the current and the next year, a strong growth at 3.9% is projected.
This positive outlook is somewhat clouded. Increased trade protectionism, rising international crude oil
prices, geo-political risks and the uncertainty about normalization of monetary policies in advanced
economies from the highly accommodative conditions in the past are some of the factors that dim the
outlook.

INDIAN ECONOMY India’s economy is emerging strongly from the transitory effects of demonetization
and the implementation of the Goods and Services Tax (GST). Although India’s GDP growth slowed from
7.1% in FY17 to 6.7% in FY18, the economy recorded a seven-quarter-high GDP growth of 7.7% in the exit
quarter of FY18. This reflects momentum. India’s macroeconomic indicators remain healthy.

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HINDALCO

Mr. Satish Pai is Managing Director of Hindalco Industries. He took over as the CEO of Hindalco’s
Aluminum Business in August 2013; his main focus being the ramp-up of the three mega Greenfield projects
that took alumina capacity to 2.7 MT and aluminum capacity to 1.3 MT. In February 2014, he was appointed
as the Deputy Managing Director of the company and was entrusted with Hindalco’s copper business. Mr.
Pai became the Managing Director of Hindalco (including the Novelis business) in August 2016. Prior to
joining the Aditya Birla Group, Mr. Pai worked with Schlumberger based out of Paris. Over the course of his
illustrious career of 28 years with Schlumberger, he held various important positions and was responsible for
all aspects of operations for Schlumberger globally. Mr. Pai serves as Director on the boards of Aditya Birla
Management Corporation Pvt. Ltd. and ABB, Zurich. He is a life member of the Indian Institute of Metals
and is a part of CII’s Task Force on China. He holds the position of Vice President and Chairman of the
Government Affairs Committee of the Aluminum Association of India.

Mr. Satish Pai

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HINDALCO

HINDALCO INDUSTRIES LTD.

INTRODUCTION

An industry leader in aluminums and copper An industry leader in aluminums and copper, Hidalgo
Industries Limited, the metals flagship company of the Adyta Birla Group is the world's largest aluminums
rolling company and one of the biggest producers of primary aluminums in Asia. The visionary — late Mr.
G.D. Birla set up India's first integrated aluminums facility at Renukoot, in the eastern fringe of Uttar
Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967. Hindalco attained its
leadership position in the aluminums industry under the dynamic leadership of the late Mr. Aditya Vikram
Birla — a formidable force in the Indian industry. In 1958, The Company was incorporated on 15th
December, at Mumbai to manufacture alumina, aluminum and aluminum fabricated items. The Company
was formed by the house of Birla’s in collaboration with the Kaiser Organization of U.S.A.

Manufacturing Location

The Kollur foil plant ( Andhra Pradesh).In 2008, consequent to the acquisition of Indal by Hindalco.

Other locations are

Belur (west Bengal), Dahej, Hirakund(Orissa), Belgaum, Silvassa (Orissa), Taloja (Maharashtra),
Alupuram(Kerala), Renukoot(u.p) , Muri(Jharkhand). And it was through the vision and guidance of Mr.
Kumar Mangalam Birla, the Group Chairman that the business segments of aluminum and copper are
consolidated to make Hindalco the nonferrous metals powerhouse it is today. Later acquisitions and mergers,
with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position
in value added alumina, aluminum and copper products. The acquisition of Novelis Inc. in 2007 positioned
us among the top five aluminum majors worldwide and the largest vertically integrated aluminum company
in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 13
countries. Our consolidated turnover of USD 15.85 billion (Rs. 72,078 Crore) places us in the Fortune 500
league.

 Nearly 1,000 aluminum panels make up the outer shell of 'Spaceship Earth', the world's
 Most famous geodesic dome, at the Walt Disney World's Epcot Centre, Florida.
 Operations in 5 continents, reaching customers in more than 50 countries.
 One of the world’s leading low cost producers of aluminum.
 One of the world’s leading largest custom copper smelters at a single location.
 Birla Copper is the only manufacturer of the 19 mm diameter copper rod in India. This rod is used
for groove conductors and profiles.

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OUR VISION, MISSION AND VALUES

Our Vision

“To strengthen our position as a premium Aluminum company, sustaining Domestic

Leadership and Global Competitiveness through Innovation, Quality and Value Added

Growth”

Our Mission

“To pursue the creation of value for our Customers, Shareholders, Employees and society At large”

Our Values

Missionary zeal arising out of

On the foundation of integrity, doing an emotional engagement with
Honesty in every action
what it takes to deliver, as promised work

Thinking and working together across functional silos, Responding to stakeholders with a sense of
hierarchy levels, businesses and geographies urgency

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HINDALCO

Board of Directors

 Mr. Kumar Mangalam Birla, Chairman

 Mr. Satish Pai, Managing Director

 Mr. Praveen Maheshwari, Whole-time Director and CFO

 Mr. Debnarayan Bhattacharya, Vice Chairman and Non-Executive Director

 Mrs. Rajashree Birla

 Mr. AK Agarwala

 Mr. KN Bhandari

 Mr. MM Bhagat

 Mr. Ram Charan

 Mr. YP Dandiwala

 Mr. Girish Dave

 Ms. Alka Marezban Bharucha

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 HINDALCO

Company Leadership Teams

Name Position

Mr. Satish Pai Managing Director

Mr. Praveen Kumar Maheshwari Whole-time Director and CFO

Mr. Jagdish Chandra Laddha Head - Copper Business

Mr. Satish Jajoo Head - Renukoot Cluster

Mr. Rajesh Kumar Gupta Head - Sambalpur Cluster

SMr. Arun Kumar B Head - Downstream Operations

Mr. N. Nagesh Unit Head - Utkal Alumina International Limited

Mr. Samik Basu Chief Human Resources Officer

Mr. Devotosh Kumar Das Chief Marketing Officer, Aluminum

Mr. Bibhu Prasad Mishra Head – McoE

Mr. A. Krishna Kumar Head - Chemicals Business

Mr. Pramod Unde Head - Mining & Minerals

Mr. Anil Malik Company Secretary

Mr. Debashis Ghosh Head - Business Transformation

Mr. Chandan Agrawal Chief Strategy Officer

Mr. V. R. Shankar Head – Legal

Mr. Jagdish Ramaswamy Chief Digitisation Officer

Dr. Pradip K. Banerjee Chief Technology Officer

Mr. Sanjay Agarwal Head - Strategic Procurement

Mr. Sukanta Das Head - Central Logistics

Mr. Ashok Machher Head - Corporate Affairs

Mr. Anil Mathew Chief Risk Officer

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HINDALCO

BUSINESS OUTLOOKS

This Company has successfully demonstrated benefit of integrated approach with low cost upstream
operations and significant abilities and reach in downstream business. The robustness of Novelis’ de-risked
business model by virtue of its geographic spread – strong presence in emerging markets, product portfolio –
with a strong proportion of recession proof and yet high potential beverage cans in the product mix and
focused approach to leverage the status of preferred vendor to global auto majors have withstood these
uncertain times. Hindalco’s aggressive expansion programme has made a significant headway, despite tough
ground conditions at its project locations

Greenfield Projects

Greenfield Projects have made significant progress during the year despite tough ground conditions at the
project locations.

Utkal Alumina International Ltd (Uail)

The construction of the alumina refinery, along with a 90 MW captive co-generation plant is in progress at
UAIL, a 100% subsidiary of the Company. The output from UAIL would be sufficient to feed alumina to the
Mahan and the Aditya Smelters.

Mahan Aluminum Project

This 359 KTPA Aluminum Smelter, along with 900 MW CPP, is coming up in Bargwan, Madhya Pradesh.
The project is on the verge of commissioning. Mahan Aluminum project and Utkal Alumina project are now
close to the stage of commissioning. These projects will re-define Hindalco’s aluminum business since all
these projects will have a world beating cost structure. The Group of Ministers constituted by the
Government of India to consider environmental and developmental issues related to coal mining etc, has
reported to have recommended granting of forest clearance by the Ministry of Environment &Forest [MoEF]
for Mahan Coal block on certain conditions

The Aditya Aluminum and Refinery Project

A 359 ktpa, Aluminum smelter along with a 900 MW captive power plant, identical to the Mahan Project, is
coming up in Odisha. The project is slated for completion in 2013. A coal block has been allotted for this
project jointly with Mahanadi Coal Fields Limited and Neyveli Lignite Corporation Limited. Alumina
Refinery along with a cogen plant is also coming up.

44
HINDALCO

The Jharkhand Aluminum Project

Aluminum smelter along with a captive power plant is coming up in Sonahatu, Jharkhand. The land
acquisition process has already begun. For this project the Tubed coal mine has been allotted to the project
jointly with Tata power.

Brownfield Projects

There were important developments in India w.r.t. your Company’s strategic goal of higher VAP proportion.

The Hirakund FRP project has made a significant progress. This project, which involved relocation of some
equipment from a closed facility of Novelis, will be the first and the only facility that will have the capability
to produce can-body stock in India. This facility will take Hindalco’s FRP play on a higher plateau in terms
of capability and profitability in the coming years

45
HINDALCO

PRODUCTS

Building Sheets

Everlast, a Hindalco brand, launched in December 2002, is made of aluminum and is ideal for all roofing
and cladding needs. It is easy to use, durable and economical to work with. Using aluminum for roofing has
many benefits.

Closure Stock

Hindalco's closure stock is rolled to very fine tolerances to yield more closure per tonne of stock and to
allow uninterrupted operation of high-speed, multiple-cavity presses. Its strength, high formability, low
earring and printable surfaces make it ideal for pilfer-proof caps and vial seals.

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HINDALCO

Fin Stock

By meeting stringent specifications of globally competitive companies, Hindalco's flat fin stock has proved
its worth in air conditioners, car radiators and heat exchangers. With the help of high-quality ingots, state-of-
the-art gauge and shape control and precision slitting, we manufacture fin stock that has tight gauge
tolerances and excellent slit edges. A tight build-up combined with internal sound metallurgical properties
produce good draw-ability required for all types of fining.

Hot Rolled Plates

As one of India's largest producers of flat rolled products, Hindalco's aluminum sheet is produced from its
own cast slabs or continuous cast coils, rolled down to customized thickness, gauge and tolerances. Our hot
rolled plates are durable and deliver long lasting performance.

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HINDALCO

Pattern Sheets

Hindalco's pattern sheets are ideal for decorative applications and interior paneling for trucks, cabins etc.
Available in five designs — diamond, five-bar, two-bar, propeller, north star — the sheets can be bent easily
or curved to take the shape of the structure in which they are fixed. Pattern sheets are light, rust-free,hygienic
and easy-to-clean and because they are made from aluminum, they are resistant to corrosion and denting.
The sheets are manufactured with state-of-the-art equipment employing sophisticated process technology.
With stringent quality control measures in place, the company sets the standard in aluminum paneling.

Cable wraps Stock

Hindalco meets global standards in the manufacture of its cable wrap stock, which is widely used in various
cable brands. With the help of high-quality ingots and state of-the-art control systems Hindalco
manufactures cable wrap stock with tighter gauge tolerances and meets excellent elongation and length
requirements.

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HINDALCO

Cold Rolled Coils

Hindalco's cold rolled coils are precision-finished to match international standards. They
have good shape, high tolerance, versatility and blemish-free surfaces. They are used in
commercial and general engineering applications such as bus bodies, cladding and fan
blades. The company meets the demands of its ever-growing clientele with continuous
upgrades and process improvement.

Flooring Sheets / Tread Plates

The high strength-to-weight ratio and raised anti-skid patterns, make Hindalco's flooring sheets ideal for use in a
number of flooring allocations, especially for bus, truck and rail coaches, loading bays, kick plates, stair treads
and catwalks. The aluminum flooring sheets and plates are resistant to corrosion and denting and able to
withstand severe conditions of abrasion. Light, rust-free, hygienic and easy-to-clean, Hindalco's sheets and plates
are manufactured with state-of-the-art equipment and sophisticated process technology. Stringent quality control
measures have made them a standard in the aluminum flooring.

49
HINDALCO

COMPETITORS

NATIONAL ALUMINUM COMPANY LIMITED (NALCO)

Incorporated in 1981 as a public sector enterprise government of India, NALCO is Asia’s largest

Integrated aluminum, encompassing bauxite, alumina, refining, aluminum smelting and casting, power
generation, rail and port operations .Commissioned during 1985-87,NALCO has emerged to be a star
performer in production and export of aluminum, and more significantly, in propelling in self-sustained
growth.

MADRAS ALUMINUM COMPANY LTD (MALCO)

MALCO is a part of Vedanta resources, a London listed metals and mining major with

Aluminum with copper and zinc in operations in U.K, India and Australia. MALCO is a primary

Aluminum producer in south India with operations encompasses mining, refining, smelting and

power generation, MALCO is surging ahead to achieve global recognition in aluminum

production.

MAN INDUSTRIES LTD

Man industries ltd. is a member of the man group, UK. The organization has been expanding,

integrating and growing at a speed of excellence.

STERLITE INDUSTRIES LTD.

Sterlite industries ltd. is the principal subsidiary of Vedanta resources plc, a FTSE 100 Diversified global
natural resources major. Sterlite produces copper aluminum, zinc, led, silver & commercial energy. They
have strong balance with capital employed of rs. 58255 crores, and a strong cash flow of rs. 8400 crores and
gearing of 27% as at march 31st 2012.

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HINDALCO

Maan Aluminum

The company is one of the pioneers in the Aluminum extrusion industry in India; its plant in central India
was one of the first to be commissioned in the year 1989. In the year 2009, the company was rebranded as
Maan Aluminum Ltd.; the new entity now includes trading and manufacturing operations, having industry
experience and knowledge of over 32 years.

The company had a humble beginning in manufacturing Aluminum extrusions, in a record time of eleven
months commenced commercial operations, and today has the distinction of being one of the nation's largest
manufacturers and exporters of Aluminum extruded products from central India.

Today, Maan Aluminum Ltd. is a preferred choice by many companies worldwide. The company is
exporting its products globally, and is accredited with One Star export house status.

Manaksia Aluminium

Manaksia Aluminum Company was incorporated as 'Manaksia Aluminum Company Limited' on March, 25,
2010 in the State of West Bengal, under the Companies Act, 1956 as a public limited Company vide
certificate of incorporation issued by Registrar of Companies, West Bengal. Company's current business is
resultant of de-merger of Aluminum undertaking of Manaksia Limited pursuant to the Scheme.

2015Manaksia Aluminum Company Ltd shares are listed and admitted to dealings on the Exchange.

Century Extrusions

Century Extrusions Limited (established in 1991) is promoted by Mr. M. P. Jhunjhunwala, a first generation
entrepreneur. The Company is one of India’s large pure play aluminum extrusion manufacturer. CEL’s
production facility is located at Kharagpur (West Bengal) in eastern part of India, close to leading primary
aluminum manufacturers in India

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HINDALCO

Competition

Name Last Market Cap. Sales Net Total Assets

Price (Rs. cr.) Turnover Profit

Hindalco 214.95 48,268.51 42,798.04 1,436.49 69,742.64

NALCO 55.75 10,400.82 9,618.31 1,342.41 10,549.80

Maan Aluminum 92.05 62.23 447.08 6.42 75.12

Manaksia Alumin 6.90 45.22 227.91 1.24 185.30

Century Extr 5.55 44.40 235.92 3.71 81.43

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HINDALCO

SWOT ANALYSIS OF HINDALCO

WHAT ARE "STRENGTHS" IN SWOT ANALYSIS?

Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain competitive
advantage in the marketplace

Success of New Product Mix Hindalco Industries provides exhaustive product mix options to its
customers. It helps the company in catering to various customers segments in the Metal Mining industry.

Brands Catering To Different Customers Segments Within Metal Mining Segment Hindalco Industries
extensive product offerings have helped the company to penetrate different customer segments in Metal
Mining segment. It has also helped the organization to diversify revenue streams.

Diverse Revenue Models Over the years Hindalco Industries has ventured into various businesses outside
the Basic Materials sector. This has enabled the company do develop a diversified revenue stream beyond
Basic Materials sector and Metal Mining segment.

Track Record of Innovation even though most players in the Basic Materials strive to innovate, Hindalco
Industries has successful record at consumer driven innovation.

Wide Geographic Presence Hindalco Industries has extensive dealer network and associates network that
not only help in delivering efficient services to the customers but also help in managing competitive
challenges in Metal Mining industry.

Talent Management at Hindalco Industries and skill development of the employees - Human resources are
integral to the success of Hindalco Industries in Metal Mining industry.

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HINDALCO

WEAKNESSES OF HINDALCO INDUSTRIES

WHAT ARE "WEAKNESSES" IN SWOT ANALYSIS?

Weaknesses of Hindalco Industries can either be absence of strengths or resources of capabilities that are
required but at present the organization doesn't have. Leaders have to be certain if the weakness is present
because of lack of strategic planning or as a result of strategic choice.

Niche Markets And Local Monopolies that company’s like Hindalco Industries able to exploit are fast
disappearing. The customer network that Hindalco Industries has promoted is proving less and less effective.

Extra Cost Of Building New Supply Chain And Logistics Network Internet and Artificial Intelligence
has significantly altered the business model in the Basic Materials industry and given the decreasing
significance of the dealer network Hindalco Industries has to build a new robust supply chain network. That
can be extremely expensive.

Loyalty among Suppliers is low - Given the history of Hindalco Industries coming up with new
innovations to drive down prices in the supply chain.

High Cost of Replacing Existing Experts within the Hindalco Industries. Few employees are responsible
for the Hindalco Industries's knowledge base and replacing them will be extremely difficult in the present
conditions.

Business Model - of Hindalco Industries can be easily imitated by the competitors in the industry name
industry. To overcome these challenges company name needs to build a platform model that can integrate
suppliers, vendors and end users.

Declining Market Share - of Hindalco Industries with increasing revenues - the Metal Mining industry is
growing faster than the company. In such a scenario Hindalco Industries has to carefully analyze the various
trends within the Basic Materials sector and figure out what it needs to do to drive future growth.

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HINDALCO

OPPORTUNITIES FOR HINDALCO INDUSTRIES

WHAT ARE "OPPORTUNITIES" IN SWOT ANALYSIS?

Opportunities are potential areas where the firm change identify potential for - growth, profits, and market
share.

Trend Of Customers Migrating To Higher End Products It represents great opportunity for Hindalco
Industries, as the firm has strong brand recognition in the premium segment, customers have experience with
excellent customer services provided by Hindalco Industries brands in the lower segment. It can be a win-
win for the company and provides an opportunity to increase the profitability.

Lower Inflation Rate the low inflation rate bring more stability in the market, enable credit at lower interest
rate to the customers of Hindalco Industries. This will increase the consumption of Hindalco Industries
products.

Increasing Customer Base In Lower Segments as customers have to migrate from un-organized operators
in the Basic Materials industry to licensed players. It will provide Hindalco Industries an opportunity to
penetrate entry level market with a no-frill offering.

Accelerated Technological Innovations and Advances are improving industrial productivity, allowing
suppliers to manufacture vast array of products and services. This can help Hindalco Industries to
significantly venture into adjacent products.

Lowering of the Cost of New Product Launches through third party retail partners and dedicated social
network. Hindalco Industries can use the emerging trend to start small before scaling up after initial success
of a new product.

Opportunities In Online Space - Increasing adoption of online services by customers will also enable
Hindalco Industries to provide new offerings to the customers in Metal Mining industry.

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HINDALCO

THREATS TO HINDALCO INDUSTRIES

WHAT ARE "THREATS" IN SWOT ANALYSIS?

Threats are factors that can be potential dangers to the firm's business models because of changes in macro
economic factors and changing consumer perceptions. Threats can be managed but not controlled.

Shortage Of Skilled Human Resources Given the high turnover of employees and increasing dependence
on innovative solution, company name can face skilled human resources challenges in the near future.

Competitors Catching up with the Product Development even though at present the Hindalco Industries
is still leader in product innovation in the Metal Mining segment. It is facing stiff challenges from
international and local competitors.

Commoditization Of The Product Segment the biggest challenge for Hindalco Industries and other players
in the industry is the increasing commoditization of the products in Basic Materials industry.

Competitive pressures as the new product launch cycles are reducing in the Basic Materials industry. It has
put additional competitive pressures on players such as Hindalco Industries. Given the large customer base,
Hindalco Industries can't respond quickly to the needs of the niche markets that disruptors are focusing on.

Growing technological expertise of local players in the export market one of the biggest threat of tie-up with
the local players in the export market for Hindalco Industries is threat of losing IPR. The intellectual
property rights framework is not very strong in emerging markets especially in China.

Trade Relation between US and China Can Affect Hindalco Industries Growth Plans this can lead to
full scale trade war which can hamper the potential of Hindalco Industries to expand operations in China.

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HINDALCO

OBJECTIVE

57
HINDALCO

To study the Quality Control Systems as adopted by HINDALCO INDUSTRIES LTD.

 The aim of this study is to analyze the implementation and effectiveness of Total Quality
Management at Hindalco Ind. Ltd.
 To study the different operational Techniques implemented in Hindalco Ind. Ltd and optimize it for
the maximum throughput.

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HINDALCO

RESEARCH METHODOLOGY

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HINDALCO

Research

Research refers to the search for knowledge. Systematic investigation process employed to increase or to
revise current knowledge by discovering new facts is research. It is an original contribution to the existing
stock of knowledge making for its advancement.

Research Methodology

Research methodology is a way to systematically solve the research problem. Methodology is the
systematic, theoretical analysis of the methods applied to a field of study. It may be understood as a science
of studying how research is done scientifically.

It consists of defining the research problem, research design, collecting the facts or data, analyzing the data
and obtaining certain conclusion in form of solution to the problem or generalization for some theoretical
formulation.

Research Design

It is the master plan and blue print of the entire study.

The type of research design used in this project report is the Descriptive Research because I have tried to
study and understand the various kinds of ways in which Hindalco industries Company provide various
kinds of training and development programs to their employees.

Sampling

Sampling is the selection of a subset (a statistical sample) of individuals from within a statistical population
to estimate characteristics of the whole population.

Sample Size

I have taken the sample size of almost 100 employees working at Hindalco Industries Limited .

Sample is the subset of the population. The process of selecting a sample is known as sampling. Number of
elements in the sample is the sample size.

Sample Design

In this study, the Non – Probability sampling has been used in which Convenience Sampling was used , as
the elements of the population was selected on the basis of ease of access.

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HINDALCO

Data Collection Method

The data sources refers to the sources from which the data are collected for conducting the research study .
The sources of data collection are as follows :

Primary Data

The Primary data was collected through Questionnaire formulated which was distributed among the
employees at Hindalco Industries Limited.

A formal list of the questions asked to the employees to know their opinion on the training and development
programs held in the organization and later analyzing the responses. I have used structured questionnaire as a
formal list of questions which produces more reliable results.-

Secondary Data

Already published data will form the starting point for the study. This includes: –
 Official Reports on related matters.

 Literature of quality management available at Hindalco Ind Ltd.

 Books and Journals on quality process of Industries.

 Books on Quality, and Operation Management

Research Tools

A structured questionnaire was prepared to get the relevant information from the respondents. The
questionnaire contains various questions such as closed ended questions, multiple choice questions which
were formulated using Likert Scale to get the opinion of the employees for the various questions asked.

Data Analysis

The data has been analyzed using various kind of tools such as :

 Likert scale

 Percentage method

 Bar charts

 Pie-charts

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HINDALCO

Sample Preparation and Quality test

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HINDALCO

Sample Preparation

Sample preparation has a great importance in XRF analysis. As the instrument is very sensitive, any type of
contamination physical and environmental should be avoided.

Sample Preparation

1. A small amount of sample should be taken from Pot for quick cooling.

2. Quick cooling helps proper crystallization.

3. The grinding should be done to achieve an average grain size of 50 micron for proper representation
of all compound or phase.

4. The sample should be packed in a sample holder or palletized.

5. The surface should be flat and smooth.

6. Sample punched with line number, year, sample number etc.

Ex. 1904A1739
where-
19 – Year
04A – Line number
1739 – No. of Sample Poured

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HINDALCO

After that Metal Quality is tested with the help of XRD and XRF and analyzed data will feed in Oracle
Database for Further Process.

Analyzed Data

Defining the Grade of Metal after Analysis

System automatically defines the grade of metal according to impurity available in Metal.

Grades:-

Aluminium % Designation
99.5–99.79 Commercial
99.8–99.49 High Purity
99.95–99.995 Super Purity
99.996–99.999 Extreme Purity
Over 99.999 Ultra Purity

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HINDALCO

DATA ANALYSIS AND INTERPRETATION

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HINDALCO

Question No. -1
Gender

S.NO. GENDER RESPONDENTS PERCENTAGE

1 MALE 72 60%

2 FEMALE 48 40%

3 TOTAL 120 100%

Chart Title

FEMALE
40%

MALE
60%

Interpretation
According to the survey conducted in the organization, it can be interpretated that there are 60% of the male
employees and 40% of the female employees in the organization.

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HINDALCO

Question no. 2

Specify your age ( in years )

S.NO. AGE RESPONDENTS PERCENTAGE

1 18-24 39 33%

2 25-34 54 45%

3 35-45 17 14%

4 45 and Above 10 8%

5 TOTAL 100%

Chart Title
60

50

40

30

20

10

0
18-24 25-34 35-45 45 and Above

Series1

Interpretation

According to the survey conducted in the organization, it can be interpretated that 45% of the employees are
of the age ranges from 25 to 34 years and 33% are of the age ranges from 18 to 24 years and the remaining
22% are above 35 years.

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HINDALCO

Question no. 3

What is your educational qualification?

S.NO. EDUCATION RESPONDANTS PERCENTAGE

1 Diploma 22 18%

2 Graduate 38 32%

3 Post Graduate 48 40%

5 Others 12 10%

6 TOTAL 120 100%

Chart Title

48

38

22

12

Diploma Graduate Post Graduate Others

Interpretation

According to the survey conducted in the organization, it can be interpretated that 18% of the employees
have diploma, 32 % of the employees are graduate and 40% of the employees are post graduates and 10%
have others educational background.

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HINDALCO

Question no. 4

How long have you worked in this organization?

S.NO. OPTIONS RESPONDENTS PERCENTAGE

1 1 – 5 years 35 29%

2 6 –10 years 26 22%

3 11 – 15 years 23 19%

4 16 –20 years 21 17%

5 Above 20 years 15 13%

TOTAL 120 100%

1 – 5 years
6 –10 years
11 – 15 years
16 –20 years
Above 20 years

Interpretation

According to the survey conducted in the organization, it can be interpretated that 29% of the employees have
1–5 years work experience, 22% of the employees have 6–10 years work experience, 19% of the employees
have 11–15 years work experience , 17% of the employees have 16–20 years work experience and 13% of the
employees have above 20 years work experience.

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HINDALCO

Question no. 5

Do you think that at Hindalco ind. Ltd. implement good and proper quality procedure?

S.NO. OPTIONS RESPONDENTS PERCENTAGE

1 YES 114 95%

2 NO 6 5%

3 TOTAL 120 100%

Chart Title

NO
5%

YES
95%

Interpretation
According to the survey conducted in the organization, it can be interpretated that 95% of respondent think
that at service Hindalco Ind. Ltd. implement good and proper quality procedure, and only 5% of respondent
don’t think like that.

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HINDALCO

Question no. 6

“A proper quality procedure made Hindalco ind Ltd. one of the well knowing company”.

Do you agree above statement?

S.NO. OPTIONS RESPONDANTS PERCENTAGE

1 Strongly disagree 9 7%

2 disagree 11 9%

3 Neutral 38 32%

4 Agree 41 34%

5 Strongly agree 21 18%

TOTAL 120 100%

Chart Title
Strongly disagree disagree Neutral Agree Strongly agree

2% 7%
23%

32%

36%

Interpretation

According to the survey conducted in the organization , it can be interpretated that 18% of the employees
strongly agree and 34% of the employees agree whereas 7% of the employees strongly disagree that
Hindalco ind Ltd. one of the well knowing company.
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HINDALCO

Question no. 7

Do you feel that Quality Procedures give help to good production response and increase profit in
Hindalco Ind.Ltd.?

S.NO. OPTIONS RESPONDANTS PERCENTAGE

1 Strongly disagree 3 2%

2 disagree 9 7%

3 Neutral 38 32%

4 Agree 43 36%

5 Strongly agree 27 23%

TOTAL 120 100%

Chart Title
Series1 Series2

43
38
27

9
3
Strongly disagree Neutral Agree Strongly
disagree agree

Interpretation

According to the survey conducted in the organization , it can be interpretated that 36% of the employees agree
and 23% of the employees strongly agree whereas 2% of the employees strongly disagree that Quality
Procedures give help to good production response and increase profit.
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HINDALCO

Question no. 8

What other benefit does your organization gain with ISO/TQM?

S.NO. OPTIONS RESPONDENTS PERCENTAGE

1 Improve Productivity 60 50%

2 Improve Morale 18 15%

3 Less Paper 5 4%

4 Less Waste 12 10%

5 Less Rework 20 17%

6 Increase Market Share 5 4%

TOTAL 120 100%

Increase
Market Chart Title
Share
Less Rework 4%
17%

Less Waste Improve Productivity

10% 50%

Improve Morale
15%
Less Paper
4%

Interpretation

According to the survey conducted in the organization, 50% of respondent think Improve Productivity benefits
organization gain with ISO/TQM, 17% of respondent think Less Rework,15% of respondent think Improve
Morale, 4% of respondent think Less Paper and other 4% respondent think Increase Market Share.

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HINDALCO

Question no. 9

Does the firm’s quality control manual require a specified checklist to be used to assess independence
and continuance/acceptance on each assurance engagement?

S.NO. OPTION RESPONDENTS PERCENTAGE

1 YES 90 75%

2 NO 30 25%

TOTAL 120 100%

Chart Title

5%

YES
NO

95%

Interpretation

According to the survey conducted in the organization, 75% of respondent think that quality control manual
require specified checklist to be used to assess independence and continuance acceptance on each assurance
engagement and 25% of respondent don’t think like that.

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HINDALCO

Question no. 10

Do you think that Total quality control is very essential for organization?

S.NO. OPTIONS RESPONDANTS PERCENTAGE

1 Strongly disagree 5 4%

2 disagree 16 13%

3 Neutral 44 37%

4 Agree 32 27%

5 Strongly agree 23 19%

TOTAL 120 100%

Chart Title

4%
19% 13%
Strongly disagree
disagree
Neutral
Agree
27%
37% Strongly agree

Interpretation

According to the survey conducted in the organization, it can be interpretated that 27% of the employees have
agreed and 19% of the employees strongly agree and have positive views whereas 4% of the employees
strongly disagree about the fact that Total quality control is very essential for organization.

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HINDALCO

Question no. 11

Overall, Do you think that ISO/TQM brings positive effect to your organization?

S.NO. OPTION RESPONDENTS PERCENTAGE

1 YES 114 95%

2 NO 6 5%

TOTAL 120 100%

Chart Title

5%

YES
NO

95%

Interpretation

According to the survey conducted in the organization 95% of respondent think that ISO/TQM brings positive
effect to your organization and 5% of respondent don’t think like that.

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HINDALCO

Question no. 12
How far it is feasible to improve quality thereby reducing Time at minimum Cost?

S.NO. OPTION RESPONDENTS PERCENTAGE

1 Feasible 102 85%

2 Not Feasible 12 10%

3 Sacrifice one or two aspects to gain 6 5%

Quality
TOTAL 120 100%

Chart Title
120

100
102
80

60
Series1
40

20
12 6
0
Feasible Not Feasible Sacrifice one or two aspects to
gain Quality

Interpretation

According to the survey conducted in the organization 85% of respondent think feasible to improve quality
thereby reducing Time at minimum Cost, 10% of respondent don’t think like that.

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HINDALCO

Question no. 13
What is the main Rational behind adopting TQM?
S.NO OPTIONS RESPONDENTS PERCENTAGE

1 Customer Requirement for Supply 78 65%

2 Competitive Pressure 18 15%

3 Shorter lead times 12 10%

4 To achieve world class status 12 10%

TOTAL 120 100%

To achieve world class Chart Title

status
10%

Shorter lead times

10%

Customer
Competitive Pressure
Requirement
15%
for Supply
65%

Interpretation

According to the survey conducted in the organization 65% of respondent think Customer Requirement for
Supply is the main Rational behind adopting TQM, 10% of respondent To achieve world class status, 15%
of respondent think Competitive Pressure, and 10% of respondent Shorter lead times is the main Rational
behind adopting TQM.

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HINDALCO

FINDINGS

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HINDALCO

The findings of the study of “ANALYSIS OF THE QUALITY PROCEDURES”

 As per the outcome of the 84% of respondent think that at Hindalco Ind Ltd. implement good and
proper quality procedure, and only 16% of respondent don’t think like that.
 Finding that 52% of respondent agree a proper quality procedure made Hindalco Ind.Ltd one of the
well knowing company”, 24% of respondent strongly agree, 12% of respondent Neutral, 8% of
respondent Disagree and only 4% of respondent strongly disagree.
 From the outcome 60% of respondent feel agree feel that Quality Procedures give help to good
production response and increase profit in Hindalco Ind. Ltd 16% of respondent Strongly agree, 20%
of respondent Neutral, and 4% of respondent Disagree.
 From the outcome of the study it is evident that, 64% of respondent think Improve Productivity
benefit organization gain with ISO/TQM, 12% of respondent think Less Rework, 8% of respondent
think Improve Morale, 8% of respondent think Less Paper and other 4% respondent think Increase
Market Share.
 As per the outcome 80% of respondent think that Total quality control manual require a specified
checklist to be used to assess independence and continuance/acceptance on each assurance
engagement, and 20% of respondent don’t think like that.
 From the outcome of the study it is evident 92% of respondent think that quality control is very
essential for organization and 8% of respondent don’t think like that.
 As per the outcome of the study 96% of respondent think that company have a system to ensure
technical data is current and 4%
 As per the outcome of the study, 80% of respondent think that ISO/TQM brings positive effect to
your organization and 20% of respondent don’t think like that.
 68% of respondent think that the proper quality procedure is followed while accepting the row
material in annual, 28% of respondent don’t think like that, and 4% of respondent can’t say anything.
 Finding that 88% of respondent think feasible to improve quality thereby reducing Time at minimum
Cost, 12% of respondent don’t think like that.
 As per findings that , 88% of respondent think Customer Requirement for Supply is the main
Rational behind adopting TQM, 28% of respondent To achieve world class status, 20% of respondent
think Competitive Pressure, and 12% of respondent Shorter lead times is the main Rational behind
adopting TQM.

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SUGGESTIONS AND RECOMMENDATIONS

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Recommendation
The suggestions I have given for the betterment are explained below of respondent don’t think like that.

 Finding that 84% of respondent think that think that technical data stored in a manner to prevent
damage and 16% of respondent don’t think that think that technical data stored in a manner to
prevent damage.
 As per findings that 64% of respondent think that company have a documented procedure to ensure
that scrapped parts are returned to the customer or mutilated beyond repair and 36% of respondent
don’t think like that.
 It is very important to provide the opportunity to the employees of the organization to express their
ideas or whatever they want to express.
 Management should clear their vision mission and goals towards the employees in the organization.
 Management should involve the workers representatives in managerial activities so that the
transparency could be maintained and through this they can win the confidence of the employees.
 Management should give due importance to mental relaxation &social cultural development of an
employees who strives hard for the company. Reward or Praise/appreciation works as magic for an
individual and
 Motivates them for work. Role clarity of each position should be defined and based on that
individuals can plan their work accordingly.
 Self-potential system should be encouraged. There are regular review and comparison of current &
past performance to detect gradual deterioration in the strategy. Proper cooperation should be
necessary in the company.

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CONCLUSION

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CONCLUSION

Quality is a measure of excellence in manufacturing. A typical quality department in manufacturing is

engaged in designing inspection plans, control plans and setting up control charts. Does it ensure quality?
Does it help in achieving manufacturing excellence? Does it make the company more profitable? We need to
challenge each department by asking its value proposition. Quality departments must not be immune from
questions such as, “How is it adding value?” Introspection and probing value proposition leads to further
questions about the purpose of a quality department. We may learn the purpose as to ensure customer
satisfaction, to ensure outgoing quality or help manufacturing. However, such purposes of the quality
department do not help a company. The purpose of a quality department is to ensure pro t margins by
reducing inefficiencies, operations errors and product defects. In addition, the purpose also must include
proactively improving capability and capacity of operations through new methods, tools or skills. Most
quality departments are forced to be timid by operations people. They are told to do things such as add
inspection, respond to a customer complaint or similar such requests. Quality departments are considered an
unwanted cost and a burden because they add no apparent value; they are considered to be cost of doing
business.

Thinking of excellence in the quality department will lead us to de ne our value proposition, and facilitate
excellence in every department. Excellence in every department means helping each department in defining
and identifying excellence such that it contributes to the pro table growth of the organization. This must then
highlight departments that are not contributing to the pro table growth, or issues adversely affecting it.

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LIMITATIONS OF THE STUDY

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LIMITATIONS
The survey has been done with full efforts and utter care but it is seen that no project is without limitation so
there are some limitations beyond control which might make the findings and conclusion in the report a little
of beam. Although we attained success in our dissertation to a great extent but still could not provide the
ideal state of Quality Procedure due to certain reasons which are:-

 The time is assumed that the information given by the respondents are authentic and to the best of
their knowledge.

 Information provided by the respondents might be biased and have variations with their actual action.

 Subjective nature of the study, the perception of the viewers change and different conclusion can be
drawn by different viewers.

 It is assumed that the information given by the respondent by authenticity and to the best of their
knowledge.

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BIBLIOGRAPHY

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Magazine and journals

 Induction guide (training center )
 Hindalco sandesh
 Aditya kiran

WEBSITES

 www.hindalco.com

 https://en.wikipedia.org

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APPENDIX

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QUESTIONNAIRE

Dear respondents,

I am a student doing MBA. I am underlying a project named “ANALYSIS OF THE QUALITY

PROCEDURES AT Hindalco Ind LTD.”. So by filling this questionnaire please help me in
completing my research project.

Name : ……………………………….

Address : ……………………………….

Designation : ……………………………….

Contact No. : ……………………………….

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Q-1) Gender

☐Male

☐Female

Q-2) Age

☐18-24

☐25-34

☐35-44

☐45 and above

Q-3) Educational Qualification

☐Diploma

☐Graduate

☐Post graduate

☐Others

Q-4) How long have you worked in this organization?

☐1-5 years

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☐6-10 years

☐11-15 years

☐16-20 years

☐above 20 years

Q-5) Do you think that at Hindalco Ind.Ltd. implement good and proper quality procedure?

☐YES

☐No

Q-6) “A proper quality procedure made Hindalco Ind.Ltd. one of the well knowing company”. Do

you agree above statement?

☐Strongly disagree

☐Disagree

☐Neutral

☐Agree

☐Strongly agree

Q-7) Do you feel that Quality Procedures give help to good production response and increase

profit in Hindalco Ind.Ltd.?

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☐Strongly disagree

☐Disagree

☐Neutral

☐Agree

☐Strongly agree

Q-8) What other benefit does your organization gain with ISO/TQM?

☐Improve Productivity

☐Improve Morale

☐Less Paper

☐Less Waste

☐Less Rework

☐Increase Market Share

Q-9) Does the firm’s quality control manual require a speci􀁼ed checklist to be used to assess

independence and continuance/acceptance on each assurance engagement?

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☐YES

☐No

Q-10) Do you think that Total quality control is very essential for organization?

☐YES

☐No

Q-11) Overall, Do you think that ISO/TQM brings positive e􀁼ect to your organization?

☐Strongly disagree

☐Disagree

☐Neutral

☐Agree

☐Strongly agree

Q-12) How far it is feasible to improve quality thereby reducing Time at minimum Cost?

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☐Feasible

☐Not Feasible

☐Sacrifice one or two aspects to gain Quality

Q-13) What is the main Rational behind adopting TQM?

☐Customer Requirement for Supply

☐Competitive Pressure

☐Shorter lead times

☐To achieve world class status

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