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A SUMMER INTERNSHIP PROJECT
ON
BUSINESS EXCELLENCE MODEL OF PROCESS EQUIPMENT DIVISION IN
GODREJ AND BOYCE MANUFACTURING COMPANY
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF University of
Mumbai
For the degree of
MASTER IN MANAGEMENT STUDIES
SUBMITTED BY
ARJUN GUNASEKARAN
ROLL NO- 131021
UNDER GUIDANCE OF
Dr. SEEMA UNNIKRISHANAN
DR. G.D.POL FOUNDATION, Y.M.T COLLEGE OF MANAGEMENT,
INSTITUTIONAL AREA, SECTOR – 4,
KHARGHAR, NAVI MUMBAI
BATCH NO. 2014-15
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ACKNOWLEDGEMENT
I take this opportunity with great pleasure to present before you this project on
“BUSINESS EXCELLENCE MODEL” which is a result of cooperation, hard work and
good wishes of many people. I would like to thank with deep sense my project guide
PROF. SEEMA UNNIKRISHANANfor her kind appreciation, friendly guidance, constant
encouragement, involvement in my project work and for her valued guidance throughout
my study without whom the project would have been a distant reality.
I owe my debt to my company guide MR. TRIVESH POONIWALA for giving me an
opportunity to present a creative outcome in form of a project and for his key inputs for
this project.
I would like to also include the sincere guidance and help from the following HR officials
at the division without whom the completion of this project would have been blindly in
the air:-
Mr. Vinay
Mr. Charwas
Mr. Neel Srivastava
Mr. T Prasad
I am also thankful all the employees of Process Equipment Department of Godrej &
Boyce Mfg. Co., without their support and conviction this project would not have been
possible.
I express my sincere thanks to the library staff that have provided me right information
and study material at the right time. No words can adequately express my debt of
gratitude to all my friends for their continuous support while the work was in process. I
must also put on record my gratitude to my Institute YMT college of Management for all
that I learnt as a student. I also wish to thank my family members whose efforts and
creativity helped me in giving the final structure to the project.
Lastly needless to say I am also thankful to all those seen and unseen hands and
minds, which have been of direct or indirect, help in the completion of my project.
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CERTIFICATE
This is to certify that the project entitled “BUSINESS EXCELLENCE MODEL” submitted by
“MR. ARJUNGUNASEKARAN” in partial fulfilment for the award of Master in Management
Studies of University of Mumbai is her original work and does not form any part of the
projects undertaken previously.
Also it is certified that the project represents the original work on the part of the candidate.
Signature of the Internal Guide:- Signature of the Dean:-
Date: Date:
College Seal:-
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COMPANY CERTIFICATE
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DECLARATION
This is to certify that the project entitled “BUSINESS EXCELLENCE MODEL” submitted by
“Ms. ARJUN GUNASEKARAN” in partial fulfilment for the award of Masters in
Management Studies of University of Mumbai is her original work and does not form any part
of the projects undertaken previously conducted projects.
The data that has been collected by me is truly authentic & is not borrowed or copied from
any dissertation report. The project contains true & complete information.
Signature of Student
(Mr. ARJUN GUNASEKARAN)
Place: SANPADA
Date:
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EXECUTIVE SUMMARY
The study is concentrated on the Business excellence model which is the systematic use
of quality management principles and tools in business management, with the goal of
improving performance based on the principles of customer focus, stakeholder value,
and process management. Key practices in business excellence applied across functional
areas in an enterprise include continuous and breakthrough improvement, preventative
management and management by facts. Some of the tools used are the balanced
scorecard, Lean, the Six Sigma statistical tools, process management, the Baldrige Criteria
for Performance Excellence and project management. The objective of business excellence
model is to provide a holistic framework that enables organizations assess how well they
manage this complex, multi-stakeholder driven operating environment. When used as a
basis for an organization's improvement culture, the business excellence criteria within the
models broadly channel and encourage the use of best practices into areas where their
effect will be most beneficial to performance. When used simply for self-assessment, the
criteria can clearly identify strong and weak areas of management practice so that tools such
as benchmarking can be used to identify best-practice to enable the gaps to be closed.
These critical links between business excellence models, best practice, and benchmarking
are fundamental to the success of the models as tools of continuous improvement.
The objective of the study is to acknowledge the ‘PARTNERSHIP AND RESOURCES’
aspect of the BUSINESS EXCELLENCE MODEL in the Process Equipment Division at
Godrej & Boyce Mfg. Co. Accordingly the analysis has been done and the findings put forth.
Also the kaizen highlight of PED has been shown in the study which depicts the division’s
advancement in this domain and improvisation to achieve greater outcomes.
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TABLE OF CONTENTS
Sr. No. Contents Page nos
PART 1
 INTRODUCTION
 NEED & SCOPE OF THE PROJECT
 OBJECTIVE OF THE STUDY
 RESEARCH METHODOLOGY
 LIMITATIONS OF THE PROJECT
09 - 15
PART 2
 COMPANY PROFILE
 ORGANIZATION CHART
 BENEFITS GIVEN BY COMPANY
17 - 19
PART 3
 THEORETICAL BACKGROUND
 DATA ANALYSIS&INTERPRETATIONS
 FINDINGS
 SUGGESTIONS/RECOMMENDATIONS
 BIBLIOGRAPHY
 ANNEXURE
(QUESTIONNAIRE)
21 - 50
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Chapter 1
INTRODUCTION
1.1.OVERVIEW ON BUSINESS EXCELLENCE
Business excellence is the systematic use of quality management principles and tools
in business management, with the goal of improving performance based on the principles of
customer focus, stakeholder value, and process management. Key practices in business
excellence applied across functional areas in an enterprise include continuous and
breakthrough improvement, preventative management and management by facts. Some of
the tools used are the balanced scorecard, Lean, the Six Sigma statistical tools, process
management, the Baldrige Criteria for Performance Excellence and project management.
Despite the name, a large number of these concepts have been widely adopted within the
public sector as these organizations strive to provide "value for money". Examples include
the Malcolm Baldrige National Quality Award, EFQM Excellence Model and Common
Assessment Framework (CAF).
The concept of business excellence appeared in the late 1980s / early 1990s and evolved
from Total Quality Management and the work of W. Edwards Demming et al. This
evolutionary path can be traced from pre-industrial revolution through to the present day....
The first stage of the "quality movement" to ensure the basic quality of the product. This
gave birth to disciplines such as analytical chemistry and early national standards. The next
stage was to reduce costs, from the industrial the next was to increase consistency and
reliability; from mass production to statistical process control. This stage culminated
with process management techniques and the development of international standards such
as ISO9000. However, as mass production increased, so did the need to ensure workers’
rights and occupational health and safety.
As consumer power grew in the post-war years, measuring customer satisfaction to
understand needs and expectations became more important to achieve or
maintain competitive advantage. As people identified the link between customer satisfaction,
product quality and the motivation of the workforce, employee satisfaction and
later employee engagementbecame the focus. On a "parallel path", environmental concerns
we're coming to the fore. Standards like ISO14001 and EMAS have been developed to help
organization ensure compliance and reduce their impact on the environment.
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The objective of business excellence models, such as Malcolm Baldrige National Quality
Award and the EFQM Excellence Model has been to provide a holistic framework that
enables organizations assess how well they manage this complex, multi-stakeholder driven
operating environment.
1.2. MODELS
By far the majority of organizations that use these models do so for self-assessment,
through which they may identify improvement opportunities, areas of strength, and ideas for
future organizational development. Users of the EFQM Excellence Model and Malcolm
Baldrige National Quality Award Criteria, for instance, do so for the following purposes: self-
assessment, strategy formulation, visioning, project management, supplier management,
and mergers.
When used as a basis for an organization's improvement culture, the business excellence
criteria within the models broadly channel and encourage the use of best practices into
areas where their effect will be most beneficial to performance. When used simply for self-
assessment, the criteria can clearly identify strong and weak areas of management practice
so that tools such as benchmarking can be used to identify best-practice to enable the gaps
to be closed. These critical links between business excellence models, best practice, and
benchmarking are fundamental to the success of the models as tools of continuous
improvement.
1.3. EFQM Excellence Model
Business excellence, as described by the EFQM refers to "outstanding practices in
managing the organization and achieving results, all based on a set of eight fundamental
concepts." These concepts are:
1. Achieving Balanced Results
2. Creating Value for Customers
3. Leading with Vision, Inspiration & Integrity
4. Managing by Processes
5. Succeeding through People
6. Nurturing Creativity & Innovation
7. Building Partnerships and
8. Taking Responsibility for a Sustainable Future
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EQFM - a framework allowing organizations to determine their current “level of excellence”
and where they need to focus improvement efforts.
Moreover, the Model helps to ensure that business decisions incorporate the needs
of all stakeholders and are aligned with the organization’s objectives.
1.4. European Foundation for Quality Management (EFQM) Excellence Model
Primary purpose
The European Foundation for Quality Management (EFQM)Excellence Model is a self-
assessment framework for measuring the strengths and areas for improvement of an
organization across all of its activities. The term ‘excellence’ is used because the Excellence
Model focuses on what an organization does, or could do, to provide an excellent service or
product to its customers, service users or stakeholders.
While its origins lie in the private sector, public and voluntary sector organizations can also
benefit from using the Excellence Model. It is non-prescriptive and does not involve strictly
following a set of rules or standards, but provides a broad and coherent set of assumptions
about what is required for a good organization and its management. Each organization can
use it in its own way to manage and develop improvement, under the control of those who
use the methods rather than an external evaluator.
Summary
The Model starts with the following premise:
Customer Results, People Results and Society results are achieved through Leadership
driving Policy and Strategy, People, Partnerships and Resources leading ultimately to
excellence in Key Performance Results.
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Figure 1: The Excellence Model Framework
There are nine ‘big ideas’ or criteria in the Model that underpin this premise and
attempt to cover all an organizations’ activities. These nine ideas are separated into
Enablers and Results. The Enabler criteria are concerned with how the organization
conducts itself, how it manages its staff and resources, how it plans its strategy and
how it reviews and monitors key processes.
They are:
1. Leadership
2. Strategy
3. People
4. Partnerships and resources
5. Processes
The organizations’ Results are what it achieves. These encompass the level of
satisfaction among the organizations’ employees and customers, its impact on the
wider community and key performance indicators. They are:
6. Customer results
7. People results
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8. Society results
9. Key performance results
Each of the nine criteria is subdivided to describe in more detail the concept of
‘Excellence’ in that area and to examine how well an organization is doing through a
list of practical questions to ask itself. The starting point for most organizations is to
gather evidence relevant to the nine criteria of the Model. This involves asking, for
each of the criteria, ‘How good are we and how could we improve?’ Evidence may
take a variety of forms depending upon the organization.
1.5. NEED AND SCOPE OF THE PROJECT
 The Excellence Model provides a holistic framework that systematically addresses a thorough
range of organizational quality issues and also gives attention to impacts through the ‘results’
criteria.
 It provides a clear diagnosis of an organization’ activities and is useful for planning as it
makes links between what an organization does and the results it achieves,
highlighting how they are achieved.
 It seeks to instill a culture of continuous improvement.
 It is flexible enough to be used in bite-sized chunks or for specific issues – e.g., an analysis of
an organizations’ environmental policy in less than a single day as well as providing a
framework for a comprehensive review of all the organizations’ activities over several months.
 There is no requirement for external validation and the Excellence Model can be used as an
internally driven self-assessment tool allowing an organization to be as honest and as open
as possible in gauging its performance.
 ‘Scoring’ can provide an organization with an internal benchmark for its next self-assessment,
in order to capture trends. It can also be used among organizations for some external
benchmarking and comparison.
 The Excellence Model stresses the importance of consensus in assessing organizations’
strengths and areas to improve.
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1.6. OBJECTIVE OF THE STUDY
 To achieve and sustain outstanding levels of performance that meets or
exceeds the expectations of all their stakeholders.
 To study the ‘PARTNERS AND RESOURCES’ aspect of the BUSINESS
EXCELLENCE MODEL in the Process Equipment Division at Godrej & Boyce Mfg.
Co. and analyse the ‘FINAL RESULTS’.
 To analyse the employee motivation levels on receiving the Kaizen awards.
1.7. RESEARCH METHODOLOGY
Research is a systematic method of finding solutions to problems. It is essentially an
investigation, a recording and an analysis of evidence for the purpose of gaining
knowledge. According to Clifford woody, “research comprises of defining and redefining
problem, formulating hypothesis or suggested solutions, collecting, organizing and
evaluating data, reaching conclusions.
Sampling Design- A sample design is a finite plan for obtaining a sample from a
given population. Random sampling is used for this study.A finite subset of population,
selected from it with the objective of investigating its properties called a sample. A
sample is a representative part of the population. The response to various elements
under each questions were totaled for the purpose of various statistical testing. For the
people results the sample of the survey comprises of the employees at Process
Equipment Division. For the data collected regarding the HR policies and initiatives
taken, the sample comprised of 2 HR executives within the division who are in charge of
the BUSINESS EXCELLENCE MODEL pertaining to the division.
Sample Size- sizes of the sample selected are 12. These sampleobtained are the
employees of PROCESS EQUIPMENT DVISION in GODREJ & BOYCE Mfg. Co.
Sampling Procedure- The procedure adopted in the present study is Random
sampling. Under this sampling design, every item of the frame has an equal chance of
inclusion in the sample.
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Methods of Data Collection-The data’s were collected through both Primary and
secondary sources.
Primary Sources- The primary data is collected through questionnaire and
interviewing. The data is interpreted by using Graphs and Statistical tools.
Secondary Sources- The secondary data mainly consists of data and information
collected from records, company websites, journals, magazines, and books.
Nature of Research.
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another. In other words, descriptive research
can be said to have a low requirement for internal validity.
1.8. LIMITATIONS TO THE PROJECT
The limitations of the study are the following:
 The data was collected through questionnaire. The responds from the respondents
may not be accurate.
 The sample taken for the study was only 95% of the total management staff in the
division and the results drawn may not be accurate.
 Another difficulty was very limited time-span of the project.
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CHAPTER 2
COMPANY PROFILE
2.1 GODREJ GROUPS
Established in 1897, the Godrej group has grown in India from the days of the charkha to
nights at the call centers. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was a
persistent inventor and a strong visionary who could see the spark in the future. His
inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s
Godrej Empire. One of India’s most trusted brand, Godrej enjoys the patronage and trust of
around 500 million Indians every single day. Our customers mean the world to us. We are
happy only when we see a delighted customer smile.
With 7 major companies with interests in real estate, FMCG, industrial engineering,
appliances, furniture, security and agri care – to name a few – our turnover crosses 4.1
billion dollars*. You think of Godrej as such an integral part of India – like the bhangara or the
kurta – that you may be surprised to know that 26% of our business is done overseas. Our
presence in more than 60 countries ensures that our customers are at home with Godrej no
matter where they go. With brands you can believe in, service excellence you can count on
and the promise of brighter living for every customer, Godrej knows what makes India tick
today.
Today, we are at a point in Godrej’s history when our amazing past is meeting up with its
spectacular future head on. Godrej is learning and relishing being young again.
GODREJ & BOYCE MFG. CO. LTD.
Godrej & Boyce Mfg. Co. Ltd., the holding company of the Godrej group, started its journey
with the manufacture of high quality locks in 1897. Today, we have 15 diverse business
divisions offering consumer, office, and industrial products and services of the highest quality
to every corner of India and across the globe.
We value integrity, trust, service and respect for individuals and for the environment. We
pride ourselves for being one of India’s most respected corporate houses known for our
philanthropy and initiation of labor reforms besides being recognized for fair, transparent and
ethical dealings. Our people are our assets who are groomed to deliver their best. At Godrej,
its more than a career. It’s an opportunity to live your dreams and be part of a culture that
nurtures ambitions, challenges and provides freedom to operate and express and your
ideas.
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The Godrej Group touches the lives of 400 million Indians who use at least one of our
products every single day. Our commitment to quality, attention to detail and customer
centricity has helped us earn the trust of generations of Indians.
2.2. ORGANIZATION CHART
GODREJ PROCESS EQUIPMENT
Godrej Process Equipment is a leader in fabricating unit static equipment for process
industries. Established in 1976, Godrej Process Equipment manufactures the entire range of
process equipment for end-users in core industry segments like Refineries, Petrochemicals,
Fertilizers, Oil & Gas, Chemicals, Pharmaceuticals and Power around the world.
Located in the industrial garden of Vikhroli, a northern suburb of Mumbai, in India, the lush
green Godrej complex and Godrej Process Equipment’s impressive manufacturing facilities
strike the eye.
The unit is accredited with following certifications: ISO 9001-2007, ISO 14001-2004BS,
OHSAS 18001-2007ASME ‘U’, ‘U2’, ‘U3’, ‘S’NBBI ‘R’, and ‘NB’AD Merkblatt HP0Chinese
SELO-Pressure Vessel certificate Chinese SELO-Boiler certificate.
Chairman &
Managing Director
Executive
Directorof
LAWKIM
ExecutiveDirector
of Finance
ExecutiveDirector Executive
Director
Precision
Engineeri
ng
Corporate
Services
Locking
Solution
s PROCESS
EQUIPMENT
DIVISION
Appliances Security
Solutions
Constructio
n
Electricals
and
Electronics
Interio Other
SBUs
ExecutiveDirectorof
HR,IR and Admin
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The bedrock of Godrej Process Equipment operations is its large, highly skilled workforce
skilled workmen and trained, competent and highly committed people have repeatedly been
able to channelize the knowledge and experience that Godrej Process Equipment has
gained over the years, through its robust systems, to ensure that projects are successfully
executed on time.
Through continuous improvement in quality, a deep commitment to on-time delivery and a
clear policy of keeping in step with the latest manufacturing technology, Godrej Process
Equipment is fully equipped to meet the challenging demands of its global customers for
process equipment.
2.3 BENEFITS GIVEN BY THE COMPANY
1. BENEFITS GIVEN TO EMPLOYEES
 Health Insurance and Safety incentives
 Bonus and Diwali gift for workmen
 Godrej has its own housing society which provides residence to employees
 Shuttle service
 School and Hospital
 Food court
 Club including Gymnasium and Swimming Pool
 Med claim
2. BENEFITS GIVEN TO THE SOCIETY
 Cancer awareness campaigns
 Anti-tobacco campaigns
 Blood donation camps
 Joy of giving
 Contribution to help victims of natural calamities
 Good and green initiatives
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CHAPTER 3
3.1 THEORETICAL BACKGROUND
The concept of business excellence appeared in the late 1980s / early 1990s and evolved
from Total Quality Management and the work of W. Edwards Demming. This evolutionary
path can be traced from pre-industrial revolution through to the present day. The first stage
of the "quality movement" to ensure the basic quality of the product. This gave birth to
disciplines such as analytical chemistry and early national standards. The next stage was to
reduce costs, from the industrial. The next was to increase consistency and reliability;
from mass production to statistical process control. This stage culminated with process
management techniques and the development of international standards such as ISO9000.
However, as mass production increased, so did the need to ensure workers
rights and occupational health and safety.
As consumer power grew in the post-war years, measuring customer satisfaction to
understand needs and expectations became more important to achieve or
maintain competitive advantage. As people identified the link between customer satisfaction,
product quality and the motivation of the workforce, employee satisfaction and
later employee engagementbecame the focus. On a "parallel path", environmental concerns
were coming to the fore. Standards like ISO14001 and EMAS have been developed to help
organization ensure compliance and reduce their impact on the environment.
The objective of business excellence models, such as Malcolm Baldrige National Quality
Award and the EFQM Excellence Model has been to provide a holistic framework that
enables organizations assess how well they manage this complex, multi-stakeholder driven
operating environment.
THE FUNDAMENTAL CONCEPTS OF EXCELLENCE
 Achieving Balanced Results
 Adding Value for Customers
 Leading with Vision, Inspiration & Integrity
 Managing by Processes
 Succeeding through People
 Nurturing Creativity & Innovation
 Building Partnerships
 Taking Responsibility for a Sustainable Future
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Any Business aims to achieve profits but that will tag the organization as a successful one
but for it being an excellent business it has to engrave the various stakeholders as a part of
the system and enable their growth along with the company. Godrej aims not just to be
successful but be excellent. For being excellent, there are various criteria which has to be
sorted out and looked after which are the main head points mentioned above.Achieving
balanced results means to sustain the achievements on its way to the top. Customers are
the topmost priority of any business. Without customers a business can’t survive. An
excellent organization adds value to the customers, empowers them and builds true worth
for them. Working without set goals and vision may lead to deep dark hole because there’s
no direction provided. Leading with vision, inspiration and integrity enables an organization
to be excellent in its working, provides a path and direction to achieve its goals and
motivating and inspiring the employees for excellent performance. The leaders of the
organization play a major role in sustaining the organization and working its way towards
being successful and excellent. Managing by processes include the various processes and
policies being followed and the different initiatives taken to improve the working and fill in the
gaps and uncertainties. Succeeding through people include another important stakeholder
which is the employees. Employees are the building blocks for a company. Hence looking
after them is also a priority. An excellent business looks after their employees and empowers
them to cultivate their creativity and bring something new. Excellent organizations always
encourages creativity and innovation and believes in coming up with new ideas and
concepts which will improve the existing ones. Kaizen is one of the processeswhich cater to
this. Kaizen is playing a major role in inhibiting the gaps and errors in the existing processes
and eradicating them through new innovations and processes which aids in improving the
system and achieving sustainability. In order for an organization to be excellent, it also has
to manage the external partnerships, suppliers and internal resources in order to support
strategy and the effective operation of processes. Every business has a responsibility
towards the society. Whatever inputs it gets to run it gets from society so in turn it also has to
return back to the society. Working towards social benefits and upliftment is crucial to
excellence.
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1. Leadership
Excellent organisations have leaders who shape the future and make it happen, acting as
role models for its values and ethics and inspiring trust at all times. They are flexible,
enabling the organisation to anticipate and react in a timely manner to ensure the ongoing
success of the organisation.
 1a.Leaders develops the Mission, Vision, Values and ethics and act as role models.
 1b.Leaders defines, monitor, review and drive the improvement of the Organisation’s
management system and performance.
 1c.Leaders engages with external stakeholders.
 1d.Leaders reinforces a culture of excellence with the organisation’s people.
 1e.Leaders ensures that the organisation is flexible and manages change effectively.
2. Strategy
Excellent organisations implement their Mission and Vision by developing a stakeholder
focused strategy. Policies, plans, objectives and processes are developed and deployed to
deliver the strategy.
 2a.Strategy is based on understanding the needs and expectations of both
stakeholders and the external environment.
 2b.Strategy is based on understanding internal performance and capabilities.
 2c.Strategy and supporting policies are developed, reviewed and updated.
 2d.Strategy and supporting policies are communicated, implemented and
monitored.
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3. People
Excellent organisations value their people and create a culture thatallows the mutually
beneficial achievement of organisational and personal goals. They develop the capabilities
of their people and promote fairness and equality. They care for, communicate, reward and
recognise, in a way that motivates people, builds commitment and enables them to use their
skills and knowledge for the benefit of the organisation.
 3a.People plans support the organisation’s strategy.
 3b.People’s knowledge and capabilities are developed.
 3c.People are aligned, involved and empowered.
 3d.People communicates effectively throughout the organisation.
 3e.People are rewarded, recognised and cared for.
4. Partnership & Resources
Excellent organisations plan and manage external partnerships, suppliers and internal
resources in order to support strategy and policies and the effective operation of processes.
They ensure that they effectively manage their environmental and societal impact.
 4a.Partners and suppliers are managed for sustainable benefit.
 4b.Finances are managed to secure sustained success.
 4c.Buildings, equipment, materials and natural resources are managed in a
sustainable way.
 4d.Technology is managed to support the delivery of strategy.
 4e.Information and knowledge are managed to support effective decision making
and to build the organisational capability.
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5. Processes, Products and Services
Excellent organisations design, manage and improve processes, products and services to
generate increasing value for customers and other stakeholders.
 5a.Processes are designed and managed to optimise stakeholder value.
 5b.Products and Services are developed to create optimum value for customers.
 5c.Products and Services are effectively promoted and marketed.
 5d.Products and Services are produced, delivered and managed.
 5e.Customer relationships are managed and enhanced.
6. Customer Results
 Develop and agree a set of performance indicators and related outcomes to
determine the successful deployment of their strategy and supporting policies, based
on the needs and expectations of their people.
 Set clear targets for Key Results based on the needs and expectations of their
people, in line with their chosen strategy.
 Demonstrate positive or sustained good People Results over at lease 3years.
 Clearly understand the underlying reasons for and drivers of observed trends and the
impact these results will have on other performance indicators and related outcomes.
 Anticipate future performance and results.
 Understand how the Key Results they achieve compare to similar organisations, and
use this data, where relevant, for target setting.
 Segment results to understand the needs and expectations of specific groups within
their organisation.
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7. People Results
 Develop and agree a set of performance indicators and related outcomes to
determine the successful deployment of their strategy and supporting policies, based
on the needs and expectations of their people.
 Set clear targets for Key Results based on the needs and expectations of their
people, in line with their chosen strategy.
 Demonstrate positive or sustained good People Results over at lease 3years.
 Clearly understand the underlying reasons for and drivers of observed trends and the
impact these results will have on other performance indicators and related outcomes.
 Anticipate future performance and results.
 Understand how the Key Results they achieve compare to similar organisations, and
use this data, where relevant, for target setting.
 Segment results to understand the needs and expectations of specific groups within
their organisation.
8. Society Results
 Develop and agree a set of performance indicators and related outcomes to
determine the successful deployment of their societal and ecological strategy and
related policies, based on the needs and expectations of the relevant external
stakeholders.
 Set clear targets for Key Results based on the needs and expectations of their
external stakeholders, in line with their chosen strategy.
 Demonstrate positive or sustained good Society Results over at least 3 years.
 Clearly understand the underlying reasons and drivers of observed trends and the
impact these results will have on other performance indicators and related outcomes.
 Anticipate future performance and results.
 Understand how the Key Results they achieve compare to similar organisations and
use this data, where relevant, for target setting.
 Segment results to understand the experience, needs and expectations of specific
stakeholders within Society.
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9. Key Results
 Develop and agree a set of key financial and non-financial results to determine
the successful deployment of their strategy, based on the needs and
expectations of their key stakeholders.
 Set clear targets for Key Results based on the needs and expectations of their
key stakeholders, in line with their chosen strategy.
 Demonstrate positive or sustained good Key Results over at least 3 years.
 Clearly understand the underlying reasons and drivers of observed trends and
the impact these results will have on other performance indicators and related
outcomes.
 Anticipate future performance and results.
 Understand how the Key Results they achieve compare to similar organisations
and use this data, where relevant, for target setting.
 Segment results to understand the performance levels and strategic outcomes
achieved within specific areas of the organisation
3.2. DATA ANALYSIS& INTERPRETATIONS
In this project emphasis has been put on the ‘PARTENERS AND RESOURCES’ criteria of
the model.
PARTENERS AND RESOURCES
Excellent organisations plan and manage external partnerships, suppliers and internal
resources in order to support strategy and policies and the effective operation of processes.
They ensure that they effectively manage their environmental and societal impact.
 4a.Partners and suppliers are managed for sustainable benefit.
 4b.Finances are managed to secure sustained success.
 4c.Buildings, equipment, materials and natural resources are managed in a
sustainable way.
 4d.Technology is managed to support the delivery of strategy.
 4e.Information and knowledge are managed to support effective decision making
and to build the organisational capability.
- 28 -
4a.Partners & Suppliers managed for sustainable benefit
Competent business partners are a key success factor for long term competitiveness & we
strive to establish mutually beneficial relationship to leverage competencies of our partners.
Vendor partnership is the most critical attribute directly impacting on material cost. Our
partners and suppliers are managed by the guidelines mentioned in our IMS Manual.
4a1. Segment & Differentiate partners and suppliers In line with organization strategy
& adopt appropriate policies and processes for effectivelymanaging them
We at Godrej PED believe in the strong alliance between us and our suppliers & partners.
Competent business partners are a key success factor for our long term competitiveness.
Partners are identified based on impact on business & relevance to mutual success. (Refer
fig 4a1)
Partnership Matrix
SOURCE: - COMPANY DATA
- 29 -
PARTNERS ENGAGEMENT ACTIVITIES
1. Customer JointDevelopmentprojectsonQualityandlogistics
2. Directmaterial Supplier Vendorevaluationandrating
3. Indirectmaterial suppliers Supporton developmentprojects
4. Serviceprovide Outsourcing
5. Logistics In-outboundlogisticsupportandclearing
6. NGO Supportfor CSRactivities
7. Society Welfare of society
8. Educational institution Managerial trainingcourses
To support key functions in organization and to ensure projected growth in new products; we
have identified and differentiated sour partners as follows:-
1) Customers: - Customers are our strategic business partners. Godrej PED ensures
that there will be customer centricity in each and every function of the business. We
design our processes; equipment’s and products considering the end user
requirements. Our customers give us an opportunity to learn and to come across
stringent technical requirements which results in improving our own core
competency.
2) Direct material Suppliers: -From total purchase values; Direct purchase share is
70%. Direct suppliers are our main source of plates; Forgings; Fasteners; Tubes;
Gaskets. Selection of these vendors is based on:-
a) Technical competence and Quality
b) Cost competitiveness
c) On time delivery
These vendors plays significant role during the pre-bid activities
Performance of the vendor is reviewed through the system ’’ Vendor Evaluation &
Rating ‘’. It is based on the formulae:-
Overall Rating = Delivery rating + Quality rating + Rework rating
Where,
Delivery rating = (Qty supplied / Qty ordered) x Penalty factor x delivery weightage
(50%)
Quality rating = (Qty approved / Qty supplied) x quality weightage (30%)
Rework rating = Rework Weightage (20%)
For Overseas vendors average overall rating per 6 months should be 60. For local
vendors overall rating per 6 months should be 70. This rating is done twice in year.
- 30 -
3) Indirect Suppliers: - From total purchase value; Indirect supplier share is 70%.
These suppliers are the sources of the material which we need for maintenance;
shop consumables; wooden items; safety related material etc. Indirect suppliers are
involved in the development projects on shop which results in productivity
improvement. These vendors are also involved in development of new tools;
machines and consumables
4) Service providers: This category includes our subcontractors; hiring service
providers; labour contractors; scrap collection dealers.
We outsource machining and fabrication activities through our subcontracting team.
Hiring service providers ensures availability of bolt tensioners; compressors;
generators. Labour contractors provide required manpower with desired skills. Scrap
dealers collect scraps and dispose it off in the prescribed manner.
5) Logistics: - Logistics providers give support for inbound and outbound logistics. It
also includes octroi agents; freight forwarding agents
6) NGO: - Godrej & Boyce Believes in the sustainable growth and contributes to the
society by active support to NGOs like ‘’ War wounded foundation’’ which takes care
of injured service personnel and ‘’ Republican sports club ‘’ which promotes hockey
to poor children in society.
7) Society: - As a value we trust in upbringing of the society and welfare of the
workers. Events like health check-up camp; blood donation camp encourages deep
sense of belonging towards society.
8) Educational institutes :- We have Partnership with well-known educational
institutes like ‘’ Warwick Institute of management ‘’, ‘’ symbiosis institute of
management studies’’, ‘’ IIM Calcutta’’ . These well-known institutes offers
customized designed management courses for our managers; and makes them
capable to withstand new responsibility in future.
We are helping the venders to improve:
1) As a part of vendor improvement; we call vendors in Godrej PED. During visit we
involve different functions like QC/Welding/Design/Shop etc. so that our
expectations from vendors can be clearly communicated.
2) We make vendors aware about best practices being followed in the industry.
3) Supplier evaluation activity in co-ordination with QA team helps vendors to
understand area of improvements
- 31 -
The venders helping us to improve
1) Our purchasers as well as our technical team visits vendors and understand the
process from learning point of view. It improves our employee knowledge base
2) Many good practices being followed at vendor’s place like kaizen and TPM;
Visual control; housekeeping can be implemented in Godrej PED.
3) During interaction we come across current happening s market. We can treat this
as a good input and consider it during formulating our strategies.
Motivating the Suppliers
1) We are making annual rate contracts with the vendors for SIC items by which
vendor get assurance for continuous business from vendors.
2) During order execution; if due to some issue vendor stuck up in then we
assist him by using Godrej influence. This helps to maintain delivery schedule
3) We motivate suppliers to get themselves approved from well-known agencies
like EIL/SABIC/RIL this improves supplier’s credentials.
Plan the new Initiatives in phase manner in development
1) We are planning for supplier re-evaluation of vendors.
Also are also planning for new vendor evaluation
2) We are taking new assignment for developing new
vendors which are already approved by our clients
Selection Criteria of vendor
1) Manufacturing facilities available with vendor
2) Technical compatibility
3) Financial stability
4) Current customer list
5) Approval from TPI agencies
6) Current supplier list
7) Industry reputation
8) Location
9) After sale Service
10) Credit period
- 32 -
Communication matrix
SOURCE: - COMPANY DATA
4a.2 Supplier meets Plan
Criteria’s for calling / selecting venders for meet
Identifying need and expectation of the venders
Why do we have suppliers meet?
Our expectation from them
Best practices followed by us
Open House
Success story of our good suppliers
Our Policy
Rewards and Recognition - Criteria to give awards
Proper schedule
Budget, Venue and guest
Direct+ indirectpurchase +
subcon
vendorsitevisits Understandcurrentorder
status and followup
As andwhen
required
Direct+ indirectpurchase+
subcon+service+ logistics
contract finalization Negotiatingandfinalizationprice,
and othertermsand conditions
of Purchase order/ contract
As andwhen
required
Direct+ indirectpurchase+
subcon+service+ logistics
suppliermeet To gather partnersandobtain
feedbackaswell assharing
Godrej & Boyce PED plansto
them
once in year
Educational institutes trainingcourses GivingLearningopportunityto
professionalsinorganizationfor
self-upgradation
once in year
Customers reviewmeeting to make customersaware about
currentprogressof ongoing
orders
As andwhen
required
society blooddonationcamps/
healthcheckupcamps
to improve sense of belongingto
the society
once in year
NGO Standardchartered
Mumbai marathon
to raise fundsfornoble clause once in year
- 33 -
Need & Expectations of vendors
 As a continuous improvement process; we encourage our suppliers to give feedback
& suggestions while doing business with Godrej & Boyce PED. We have received
feedback as follows.
 Vendors have acknowledged Godrej & Boyce PED support to them in last financial
year 2013-14
 Our suppliers are keen to continue business with us
 L & T Steel have suggested to improve on delay in vehicle placement
 Heavy metal has raise concern that Godrej PED is approaching heavy metals only if
clients are critical. In non-critical projects; they are ignored
 Ratnadeep metal asked to improve on fast document clearance i.e. invalidation
certificate.
 Forging vendors have suggested to improve on fast QAP approvals; Drawing
approvals.
 Rejections related to Drg/MTO/Baan text mismatch also need to be addressed.
4b. Finances are managed to secure sustainable success –
PED’s financial policies are governed by Corporate Finance’s Guiding Principles. Based on
Pending Orders on Hand and inputs given by marketing with respect to expected orders
which are executable in next year, the ABP Billed Sales are finalized and communicated by
DH. Finance collets data with respect to Cost Sheet and Departmental expenses and
CAPEX Budgets and formulates ABP. The same is translated into monthly deliverables
based on the monthly Targeted Billed Sales plan prepared by PMC for the year. Budget for
CAPEX is planned considering short term as well as long term Strategic Initiatives.
The process of Financial Analysis and Planning is in place for reporting, control and review
of financial resources. Divisions Financial reporting and review mechanism includes
reporting to DMC and all functional Heads (Performance Management Systems Data giving
details of YTD ABP vs Actuals data against each element of ABP), Internal Functions
(Indirect Material Consumption, Tooling Expenses), Corporate Finance (Marketable
Production, Stocks, Monthly Provisions and Internal Audit Reports) and CMD & Executive
Directors of G & B (Business Review – Variance Analysis and Working Capital Trend and
variances against ABP).
Corporate Governance and Internal Control Systems is through process of ‘Audits and
Internal Controls’. Corporate Internal Audit department reviews the processes and internal
Control Mechanisms. Internal Audit Report is presented to DH. This is reviewed by
Corporate Audit Committee headed by Director. Actions Taken are submitted by concerned
departments to Internal Audit Departments. Separate Authorization Matrix is in place for
approval of Purchases (Material procurement, Subcontracting and Logistics Expenses) and
for Treasury Expenses. Similarly Authorization Matrix is in place for Approval of Sales Order
Booking
- 34 -
4c. Buildings, Equipment’s, Materials and Natural Resources are managed in a
sustainable way
 With Total Productive Maintenance (TPM) coming into force, policy has been applied
for asset management, to improve and sustain the reliability, availability and
maintainability of the equipment. As a vision towards journey to sustainable
excellence, Godrej Process Equipment (GPE) manages Quality and EHS supported
by IMS policy.
 Towards natural resources, GPE has taken several initiatives on MSG, conservation
of energy, power and gases
SOURCE: - COMPANY DATA SOURCE: - COMPANY DATA
1099 1182 963
2533
0
1000
2000
3000
2010-11 2011-12 2012-13 2013-14
CompAir consumptionin 1000 KWH
- 35 -
SOURCE: - COMPANY DATA SOURCE: - COMPANY DATA
 During ABP, plan is made and followed for optimum utilization of existing assets.
Similarly, Capex is planned looking at the orders in hand and probable areas of
diversification or expansion.
 Based on the above inputs decision is taken on addition of new assets. Looking at
the current order booking, several Low Cost Automation (LCA) projects are taken up.
This helps in improving productivity, reducing manufacturing cost which even leads in
reduction of capital expenditure.
 Regarding infrastructure upkeep, Construction division expertise is utilized, such as
buildings etc. Through proper plan and strategy, the inspection, repair & maintenance
of building are done by them. Similarly, maintenance of the power supply (HT and
LT) and utilities is taken care by E & E division. These are coordinated by GPE. GPE
yearly average expenditure on these is Rs. 700 Lacs. GPE has indications for
important locations such as exits, emergency assembly points, water shower, eye
washer, fire extinguishers and hydrants.
 To ensure security of the assets and raw material, GPE has proposed an expenditure
of Rs. 75 lacs to install CCTV system with face recognition. OEP is in place to
manage any exigencies. Ambulances and fire tenders are available in the premises.
Buildings, equipment’s and stocks are insured for fire and natural calamities and are
renewed yearly. Data security is assured by extensive back up procedures,
supported by GITL.
 As a unit to cater world class asset management, we partnered with CII in 2009-10
for TPM implementation. In 2010, GPE appointed TPM coordinator after TPM kick-off
on Aug 2010, 100 critical machines were identified based on PQCDSME for
improving OEE by implementing JH, KK and PM pillars.
688 664
481 538
0
200
400
600
800
2010-11 2011-12 2012-13 2013-14
Cop.Air consumptionper ton of Production
- 36 -
 Refer below chart for TPM implementation status. Maintenance of the equipment’s is
managed through processes of ‘Breakdown Maintenance’ and ‘Preventive
Maintenance’. Percentage maintenance hours on critical machines reduced and
MTBF increased in the due course of time as a result of implementation of PM pillar,
whereas MTTR reduced and OEE improved due to increase in critical machine.
 Adherence to preventive maintenance plan is above 98%. Breakdown history and
action are recorded in online “G-CALL” system. Equipment’s’ health is being
monitored and maintained through CLIT practices and adherence to Preventive
Maintenance plan. Re-conditioning plan is formulated based on experienced
maintenance team and condition monitoring is planned to put into force in the current
fiscal year.
Water leakage 2014
SOURCE: - COMPANY DATA
Gas leakage 2014
SOURCE: - COMPANY DATA
- 37 -
Oil Consumption Pattern
SOURCE: - COMPANY DATA
4d. Technology is managed to support the deliveryof strategy.
Manage TechnologyPortfolio:
Our Technology management involves development new product line, latest welding/NDT
Technology, Latest fabrication facility, design and fabrication capability for various codes and
standards. We have Annual Business Plan (ABP), Strategic Business Plan ( SBP) and 10 X
10 to establish the strategies and policies for our business needs. Our sales and marketing
Team has continuous focus in emerging market to determine area of investment,
development for new product line which are aligned with overall business strategies. This
involves creation of new fabrication facility and procurement of new machinery required to
enhance the fabrication capability. Currently, an additional fabrication facility is under
development in Dahej to scale up the production capability.
Development projects are initiated by marketing Team through Project Information Meeting
with relevant departments to understand the technology need and fabrication plan.
- 38 -
Table-2: The current product line.PressureVessels
• HDS/HDT Reactors
• Tubular Reactors
• PP Reactors
• Coke Drum
• Other high criticality/ heavy walled reactors
• PTA Reactors
• CCR
• HP Separators
•Ammonia Convertors
•Secondary Reformers
•Fractionation/Distillation Columns
• Steam Drum
Shell&Tube
HeatExchanger
• High Pressure HeatExchangers
• Lummus Advanced Breech-LockExchangers
• Helix changers
• Feed Water heaters
Trays&
Internals
• Reactor internals
• Ripple Trays
• MD Trays
• Sieve, valve,chimney trays
• Tower internals
Table-3: List of certification.
All fabrication capabilities, Quality Management System, Process systems are continuously
evaluated and audited by end users, EPC, Process Licensor and Third Parties to meet their
requirements. Exploration of new technology to improve the process is based on the
customer needs and feedback, visit to various exhibition, Technical Seminars, Journals and
input from relevant stake holders.
Certificate Name Certifying Authority
ASME 'U'
ASME
ASME 'U2'
ASME 'U3'
ASME 'S'
''R' National
Board''NB'
People’s Republic of
China – Boilers
SELOPeople’s Republic of
China – Pressure
Vessels
ISO 9001
LRQAISO 14001
OHSAS 18001
HP 0
TUV Nord.
DIN EN ISO 3834-2
IBR Directorate of Steam Boilers, M.S.
- 39 -
Involve relevant stake holders:
We involve and work with relevant third parties, Process Licensors and client to develop new
product line. Godrej Process Equipment has technology partnership with LUMMS for heat
exchanger design. Development projects are jointly taken up with material and machine
manufacturer to improve our process. For example, in welding technology, development
projects are jointly taken up with welding consumable manufactures to improve the
productivity and Quality. We involve experts and consultants like TWI-The Welding Institute,
UK for all technology solutions.
Table-4:List of Developmental Projects
Development of Breech Lock Heat Exchanger in design and fabrication:
• Mock-up equipment was designed and fabricated under inspection of LRA and EIL.
• Subsequently, a Breech Lock Heat Exchanger designed, fabricated and supplied to
RCFL, India. (Project No.: 130979).
• Further, a development project is initiated to develop a fabrication capability for High- High
Type Breech Lock Heat Exchanger.
Development in Power Sector Equipment :
• Separate sales and marketing team is formed to have more focus on this sector.
• To improve the capability of tube sheet drilling for the Power sector equipment which are
large in size, two drilling machine are procured.
Development in Urea Process Plant Equipment.( Stamicarbon License ) :
• Stamicarbon is one of the leading Process Licenser for Urea Process Plant.
• We executed several mock-ups under witness of Stamicarbon to get approval from them for
design and fabrication of Urea plant equipment using their technology.
Development in Coke Drum Equipment’s:
Many initiatives are taken to get an approval from customer to design and fabricate Coke
Drum Equipment’s.
In one of the initiatives, we executed several mockup under witness of Foster Wheeler to get
approval from them for design and fabrication of Coke Drum Equipment’s.
Development in Cr- Mo- V Equipment’s:
Hydro Treatment Reactors made of Cr-Mo-V is one of the very difficult metallurgy to
fabricate. In order to prove our capability, we executed several procedure qualifications which
include the butt joint and overlay procedure with step cooling treatment and hydrogen
disbanding Test.
- 40 -
Development of Multiwall Reactor for Fertilizer Plant :
Developmental project is initiated to design and fabricate mock-up equipment under LRA.
Development of Zirconium Heat Exchangers:
Heat Exchanger made of Zirconium is one of the very difficult Non Ferrous exhotic metallurgy
to fabricate. In order to prove our capability, we executed procedure qualifications and
presented to customer.
Identify and evaluate alternative and emerging Technology
New product line and new manufacturing facilities are strategically decided by10 x 10
process method to support the future organization needs. Environmental needs like waste
management and control, Noise level management and control, Natural resource
conservation, gas conservation, energy consumption are managed as per regularity
authorities’ norms.
Use of Technologyto support the culture of creativityand innovation
We use many software Technologies to support departmental function, for example, Wrench
- This software is used for document management. This software allows quick access and
share the document information between departments and automatic work flow
management system for prepare, check and approve the document. We use ERP system
called "Baan" for all manufacturing function. BaaN system is suitably developed to eliminate
manual process and user friendly process. Kaizen concepts used to bring out innovation
from employees which are maintained in online system.
Refer Table-5: List of Information Technology.
Design Software:
• HTRI Xist (Thermal Design)
• PVElite
• Microprotol
CAD & FEM Software:
• ANSYS
• Pro-E Wildfire
• Autodesk Inventor
• Auto Drafting Parametric Software
• AutoCAD
Primavera Project Planner P3e - Multi-projects Scheduling & resource balancing, Online
schedule updating & monitoring using Primavera Progress Reporter.
BaaN - Interface with AutoCAD to generate online CBOM in BaaN, Inventory Management,
Procurement, Monitoring Raw Material & WIP, Monitor cost variance, For issuing ‘welding
consumable issue cum instruction slip’.
Wrench - Document management system.
- 41 -
4e. Information and knowledge are managed to support effective decision making and
to build the organizational capability.
 Information Flow
 In order that top management is provided with accurate and sufficient information to
support timely decision-making, both system-generated and manual reports are
available.
 Primavera software gives a top-level reporting of the project status. Wrench gives
document status and Baan provides resource planning status. These are used for
reviewing project status, course-correction and decision-making.
 Department-wise reports are also available such as HRIS, Speed flow, Kaizen
reports, Gcall, etc.
 Manual reports such as RT defects, OEE and shell rolling reports are also utilised in
carrying out decisions.
 Knowledge Capture
 There are several ways by which collective knowledge of employees is captured and
shared. One of the methods is Kaizen ideas and PMO improvements. These are
discussed and incorporated in departmental activities. Once a month, employees are
invited for an SOS session in which improvements by groups of people or individuals
is presented to the rest of the Divisional team members.
 Knowledge is also captured in project closure meetings. Lessons learnt while
executing project are discussed in these meetings. This is utilised to generate ideas
for future projects.
 Interactions with clients, consultants, inspection agencies and suppliers are also
captured, and these are used for improvements and innovation.
 Ideas generated in weekly review meetings are also captured and implemented.
 Protection of Intellectual Property
 The Document Management Software, Wrench, has user-level and group-level
access. This ensures security of documents as well as intellectual property.
- 42 -
 Access Control to Information
 Access to information can be given to externals customers in the following ways:
 Online tracking of information by suppliers and customers.
 Currently, project status is informed to the customers periodically by means of
emails. Primavera project monitoring can be utilised to give access to customers so
that real-time monitoring can happen.
 Learning and Collaboration Network
 Ideas from consultants (Takao-san, Mr Srinivasan), social networking sites, etc. can
be utilised to identify creativity, innovation and improvement. Ideas and
improvements from these sources are formally recorded and implemented. Such
ideas are then transformed into reality with specific time targets so that advantages
can be gained to maximise output and productivity.
3.3. FINDINGS
Findings from data analysis on kaizen
KAIZEN HIGHLIGHTS OF PED
KAIZEN: - “Improvement” or “change for the best” refers to philosophy or practices that
focus upon continuous improvement of processes in manufacturing, engineering, business
management or any process.
Here in Godrej, at Process Equipment Division, Kaizen methods are applied to its fullest use
and implemented to increase the productivity and hence, enhance efficiency in the entire
working process. To summarize, over the years the division held pride in progressing year
after year in most aspects of kaizen. More and more kaizens are implemented and
participation is also increasing.
As the PEDians believe that ‘Quality than Quantity’, PED is no.1 division as far as no. of
level 1 kaizens are accounted in the past 2 years. In 2012-13, there were a total of 220
kaizens and in 2013-14; there was a total of 297 level 1 kaizens.
Pride moment for PED:-
PED won 2 prestigious awards in Godrej & Boyce annual kaizen competition in 2013-14.
Categories of the awards won are as follows:-
 Best kaizen in workmen category.
 Best kaizen in management category.
- 43 -
Following are the progress trends of few aspects of kaizen:-
1. NUMBER OF KAIZEN
As, ‘a picture is worth a thousand words’, ‘a kaizen is worth a thousand efforts and
ideas’. With more and more kaizens being implemented it is enhancing the working
process of the system. As shown in the below figure, the number of kaizen has
increased considerably over the years and has crossed the target with flying colors
setting a benchmark for the next financial year.
0
500
1000
1500
2000
2500
3000
3500
4000
2011-12 2012-13 2013-14
NUMBER OF KAIZEN
actual target
1751
3338
375
3389
2. PARTICIPATION PERCENTAGE
Such happiness as life is capable of whatever comes from the full participation of all our
powers in the endeavor to wrest from each changing situations of experience its own full
and unique meaning. Similarly here in PED, the participation of the people in kaizen and
their powers of creative thinking and new ideas mark the progress of kaizen as is noted
till date. From the below figure it can be deduced that the participation percentage has
increased exponentially over the years and has also crossed the targets with
considerable values setting higher targets for the successive years.
0
10
20
30
40
50
60
70
80
90
100
2011-12 2012-13 2013-14
PARTICIPATION PERCENTAGE
ACTUAL TARGET
22.6
75.9
91.3
85
72
- 44 -
3. RESULT AREA-WISE KAIZEN
MOTIVATION TRENDS ANALYSIS ON RECEIVING KAIZEN AWARDS
Our biggest roadblock to success is identifying our own true potential and the great heights
we are capable of reaching. As truly said, “the sky is never the limit”, anything can be
achieved if we aim high and proper execution of our creativity. Here at Godrej, exceptional
thinking and creativity is highly embraced. The winners of the KAIZEN awards in Process
Equipment Division prove that the sky was never the limit for them. Among 14 categories of
awards, 43 stood out as winners and proud bearers of the award.
All the winners feel highly motivated and are geared up for fulfilling even more expectations
from them as now the bars have been set high. Their results have set benchmarks for others
and will also inspire them to portray such phenomenal ideas and outcomes.
Many factors were responsible for their success, for some of them “try, try till you succeed”
using various alternatives stood out, for some thinking out of the box to reduce time and
efforts and hence more productivity, for some past history of same problems and working
their way out of it, and while others credit inspiration from management as their key factor
for success. But above all the most prior factor was teamwork.
1277
584
527
427
283
213
78
Area Wise Results
Productivity
Safety
Quality
Morale
Delivery
Cost
environment
- 45 -
The winners are also helping out others to guide them, and suggesting ideas, and sharing
their mantra of success so that even others can achieve what they have achieved and the
efficiency and productivity of the division can reach skyrocketing limits.
They all feel satisfied to their heartiest content for being recognized and receiving such
great critical acclaimof their efforts.
This award recognises your performance
and gives you recognition among others.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Feel motivated after receiving this
recognition
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
- 46 -
Other alternatives you suggest to motivate
people further
career growth
regular feedback
from evaluators
senior executive's
appreciation on
innovative ideas
publicising the
achievements on
intranet
Helping others to carry out kaizen
Yes
No
Not yet but will do
henceforth
- 47 -
3.4 SUGGESTIONS/RECOMMENDATIONS
 DSS is not quite redefined which needs to be worked upon.
 Risk management practices have to be more enhanced and reliable.
 Inclusive of macro level investment plans.
 Capex budgeting is done which needs to be more redefined and continuous updating
according to day-to-day changes in external and internal factors affecting the budget
plan.
 There should be formal interactions regarding external trainings so that knowledge
sharing can be enhanced.
 Scheduled time for on job training can enhance the learning opportunities more.
- 48 -
3.5 BIBLIOGRAPHY
 CII STUDY MATERIAL FOR BUSINESS EXCELLENCE MODEL
 EFQM PUBLICATIONS- EFQM MODEL
 MEASURING BUSINESS EXCELLENCE- GOPAL K. KANJI
 BUSINESS EXCELLENCE-THE INTEGRATED SOLUTION TO PLANNING AND
CONTROL BY PHIL ROBINSON
WEBLIOGRAPHY
 WIKIPEDIA
 GOOGLE
 YAHOO
 EFQM.ORG
- 49 -
3.6 ANNEXURE (Questionnaire)
QUESTIONNAIRE 1
GODREJ
NAME: -
AGE:-
DESIGNATION:-
PLANT:-
WORK SPECIALIZATION:-
1. FOR WHICH KAIZEN YOU GOT AWARD?
2. HOW DO YOU FEEL AFTER WINNING THIS AWARD?
3. HOW YOU GOT THE IDEA OF DOING THIS KAIZEN? WHICH FACTORS HELPED YOU TO
COMPLETE THIS KAIZEN?
4. DO YOU FEEL THAT THIS AWARD RECOGNISES YOUR PERFORMANCE AND GIVES YOU
RECOGNITION AMONG OTHERS?
o STRONGLY AGREE
o AGREE
o NEUTRAL
o DISAGREE
o STRONGLY DISAGREE
- 50 -
5. DO YOU FEEL MOTIVATED AFTER RECEIVING THIS RECOGNITION?
o STRONGLY AGREE
o AGREE
o NEUTRAL
o DISAGREE
o STRONGLY DISAGREE
6. DO YOU FEEL THERE ARE OTHER WAYS WHICH WILL MOTIVATE YOU FURTHER?
7. ARE YOU HELPING OTHERS TO CARRY OUT KAIZEN?
o YES
o NO
o NOT YET BUT WILL DO HENCEFORTH
8. IN WHAT WAYS ARE YOU GUIDING OTHERS TO CARRY OUT KAIZEN?
9. WHAT DO YOU FEEL IS THE SECRET FOR YOU EFFICIENT PERFORMANCE?
10. DO YOU FEEL SATISFIED WITH THIS CRITICAL ACCLAIMOF YOUR PERFORMANCE?
11. WHAT OTHER ALTERNATIVES WOULD YOU SUGGEST TO MOTIVATE THE PEOPLE FOR
BETTER PERFORMANCE?

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ARJUN

  • 1. - 1 - A SUMMER INTERNSHIP PROJECT ON BUSINESS EXCELLENCE MODEL OF PROCESS EQUIPMENT DIVISION IN GODREJ AND BOYCE MANUFACTURING COMPANY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF University of Mumbai For the degree of MASTER IN MANAGEMENT STUDIES SUBMITTED BY ARJUN GUNASEKARAN ROLL NO- 131021 UNDER GUIDANCE OF Dr. SEEMA UNNIKRISHANAN DR. G.D.POL FOUNDATION, Y.M.T COLLEGE OF MANAGEMENT, INSTITUTIONAL AREA, SECTOR – 4, KHARGHAR, NAVI MUMBAI BATCH NO. 2014-15
  • 2. - 2 - ACKNOWLEDGEMENT I take this opportunity with great pleasure to present before you this project on “BUSINESS EXCELLENCE MODEL” which is a result of cooperation, hard work and good wishes of many people. I would like to thank with deep sense my project guide PROF. SEEMA UNNIKRISHANANfor her kind appreciation, friendly guidance, constant encouragement, involvement in my project work and for her valued guidance throughout my study without whom the project would have been a distant reality. I owe my debt to my company guide MR. TRIVESH POONIWALA for giving me an opportunity to present a creative outcome in form of a project and for his key inputs for this project. I would like to also include the sincere guidance and help from the following HR officials at the division without whom the completion of this project would have been blindly in the air:- Mr. Vinay Mr. Charwas Mr. Neel Srivastava Mr. T Prasad I am also thankful all the employees of Process Equipment Department of Godrej & Boyce Mfg. Co., without their support and conviction this project would not have been possible. I express my sincere thanks to the library staff that have provided me right information and study material at the right time. No words can adequately express my debt of gratitude to all my friends for their continuous support while the work was in process. I must also put on record my gratitude to my Institute YMT college of Management for all that I learnt as a student. I also wish to thank my family members whose efforts and creativity helped me in giving the final structure to the project. Lastly needless to say I am also thankful to all those seen and unseen hands and minds, which have been of direct or indirect, help in the completion of my project.
  • 3. - 3 - CERTIFICATE This is to certify that the project entitled “BUSINESS EXCELLENCE MODEL” submitted by “MR. ARJUNGUNASEKARAN” in partial fulfilment for the award of Master in Management Studies of University of Mumbai is her original work and does not form any part of the projects undertaken previously. Also it is certified that the project represents the original work on the part of the candidate. Signature of the Internal Guide:- Signature of the Dean:- Date: Date: College Seal:-
  • 4. - 4 - COMPANY CERTIFICATE
  • 5. - 5 - DECLARATION This is to certify that the project entitled “BUSINESS EXCELLENCE MODEL” submitted by “Ms. ARJUN GUNASEKARAN” in partial fulfilment for the award of Masters in Management Studies of University of Mumbai is her original work and does not form any part of the projects undertaken previously conducted projects. The data that has been collected by me is truly authentic & is not borrowed or copied from any dissertation report. The project contains true & complete information. Signature of Student (Mr. ARJUN GUNASEKARAN) Place: SANPADA Date:
  • 6. - 6 - EXECUTIVE SUMMARY The study is concentrated on the Business excellence model which is the systematic use of quality management principles and tools in business management, with the goal of improving performance based on the principles of customer focus, stakeholder value, and process management. Key practices in business excellence applied across functional areas in an enterprise include continuous and breakthrough improvement, preventative management and management by facts. Some of the tools used are the balanced scorecard, Lean, the Six Sigma statistical tools, process management, the Baldrige Criteria for Performance Excellence and project management. The objective of business excellence model is to provide a holistic framework that enables organizations assess how well they manage this complex, multi-stakeholder driven operating environment. When used as a basis for an organization's improvement culture, the business excellence criteria within the models broadly channel and encourage the use of best practices into areas where their effect will be most beneficial to performance. When used simply for self-assessment, the criteria can clearly identify strong and weak areas of management practice so that tools such as benchmarking can be used to identify best-practice to enable the gaps to be closed. These critical links between business excellence models, best practice, and benchmarking are fundamental to the success of the models as tools of continuous improvement. The objective of the study is to acknowledge the ‘PARTNERSHIP AND RESOURCES’ aspect of the BUSINESS EXCELLENCE MODEL in the Process Equipment Division at Godrej & Boyce Mfg. Co. Accordingly the analysis has been done and the findings put forth. Also the kaizen highlight of PED has been shown in the study which depicts the division’s advancement in this domain and improvisation to achieve greater outcomes.
  • 7. - 7 - TABLE OF CONTENTS Sr. No. Contents Page nos PART 1  INTRODUCTION  NEED & SCOPE OF THE PROJECT  OBJECTIVE OF THE STUDY  RESEARCH METHODOLOGY  LIMITATIONS OF THE PROJECT 09 - 15 PART 2  COMPANY PROFILE  ORGANIZATION CHART  BENEFITS GIVEN BY COMPANY 17 - 19 PART 3  THEORETICAL BACKGROUND  DATA ANALYSIS&INTERPRETATIONS  FINDINGS  SUGGESTIONS/RECOMMENDATIONS  BIBLIOGRAPHY  ANNEXURE (QUESTIONNAIRE) 21 - 50
  • 9. - 9 - Chapter 1 INTRODUCTION 1.1.OVERVIEW ON BUSINESS EXCELLENCE Business excellence is the systematic use of quality management principles and tools in business management, with the goal of improving performance based on the principles of customer focus, stakeholder value, and process management. Key practices in business excellence applied across functional areas in an enterprise include continuous and breakthrough improvement, preventative management and management by facts. Some of the tools used are the balanced scorecard, Lean, the Six Sigma statistical tools, process management, the Baldrige Criteria for Performance Excellence and project management. Despite the name, a large number of these concepts have been widely adopted within the public sector as these organizations strive to provide "value for money". Examples include the Malcolm Baldrige National Quality Award, EFQM Excellence Model and Common Assessment Framework (CAF). The concept of business excellence appeared in the late 1980s / early 1990s and evolved from Total Quality Management and the work of W. Edwards Demming et al. This evolutionary path can be traced from pre-industrial revolution through to the present day.... The first stage of the "quality movement" to ensure the basic quality of the product. This gave birth to disciplines such as analytical chemistry and early national standards. The next stage was to reduce costs, from the industrial the next was to increase consistency and reliability; from mass production to statistical process control. This stage culminated with process management techniques and the development of international standards such as ISO9000. However, as mass production increased, so did the need to ensure workers’ rights and occupational health and safety. As consumer power grew in the post-war years, measuring customer satisfaction to understand needs and expectations became more important to achieve or maintain competitive advantage. As people identified the link between customer satisfaction, product quality and the motivation of the workforce, employee satisfaction and later employee engagementbecame the focus. On a "parallel path", environmental concerns we're coming to the fore. Standards like ISO14001 and EMAS have been developed to help organization ensure compliance and reduce their impact on the environment.
  • 10. - 10 - The objective of business excellence models, such as Malcolm Baldrige National Quality Award and the EFQM Excellence Model has been to provide a holistic framework that enables organizations assess how well they manage this complex, multi-stakeholder driven operating environment. 1.2. MODELS By far the majority of organizations that use these models do so for self-assessment, through which they may identify improvement opportunities, areas of strength, and ideas for future organizational development. Users of the EFQM Excellence Model and Malcolm Baldrige National Quality Award Criteria, for instance, do so for the following purposes: self- assessment, strategy formulation, visioning, project management, supplier management, and mergers. When used as a basis for an organization's improvement culture, the business excellence criteria within the models broadly channel and encourage the use of best practices into areas where their effect will be most beneficial to performance. When used simply for self- assessment, the criteria can clearly identify strong and weak areas of management practice so that tools such as benchmarking can be used to identify best-practice to enable the gaps to be closed. These critical links between business excellence models, best practice, and benchmarking are fundamental to the success of the models as tools of continuous improvement. 1.3. EFQM Excellence Model Business excellence, as described by the EFQM refers to "outstanding practices in managing the organization and achieving results, all based on a set of eight fundamental concepts." These concepts are: 1. Achieving Balanced Results 2. Creating Value for Customers 3. Leading with Vision, Inspiration & Integrity 4. Managing by Processes 5. Succeeding through People 6. Nurturing Creativity & Innovation 7. Building Partnerships and 8. Taking Responsibility for a Sustainable Future
  • 11. - 11 - EQFM - a framework allowing organizations to determine their current “level of excellence” and where they need to focus improvement efforts. Moreover, the Model helps to ensure that business decisions incorporate the needs of all stakeholders and are aligned with the organization’s objectives. 1.4. European Foundation for Quality Management (EFQM) Excellence Model Primary purpose The European Foundation for Quality Management (EFQM)Excellence Model is a self- assessment framework for measuring the strengths and areas for improvement of an organization across all of its activities. The term ‘excellence’ is used because the Excellence Model focuses on what an organization does, or could do, to provide an excellent service or product to its customers, service users or stakeholders. While its origins lie in the private sector, public and voluntary sector organizations can also benefit from using the Excellence Model. It is non-prescriptive and does not involve strictly following a set of rules or standards, but provides a broad and coherent set of assumptions about what is required for a good organization and its management. Each organization can use it in its own way to manage and develop improvement, under the control of those who use the methods rather than an external evaluator. Summary The Model starts with the following premise: Customer Results, People Results and Society results are achieved through Leadership driving Policy and Strategy, People, Partnerships and Resources leading ultimately to excellence in Key Performance Results.
  • 12. - 12 - Figure 1: The Excellence Model Framework There are nine ‘big ideas’ or criteria in the Model that underpin this premise and attempt to cover all an organizations’ activities. These nine ideas are separated into Enablers and Results. The Enabler criteria are concerned with how the organization conducts itself, how it manages its staff and resources, how it plans its strategy and how it reviews and monitors key processes. They are: 1. Leadership 2. Strategy 3. People 4. Partnerships and resources 5. Processes The organizations’ Results are what it achieves. These encompass the level of satisfaction among the organizations’ employees and customers, its impact on the wider community and key performance indicators. They are: 6. Customer results 7. People results
  • 13. - 13 - 8. Society results 9. Key performance results Each of the nine criteria is subdivided to describe in more detail the concept of ‘Excellence’ in that area and to examine how well an organization is doing through a list of practical questions to ask itself. The starting point for most organizations is to gather evidence relevant to the nine criteria of the Model. This involves asking, for each of the criteria, ‘How good are we and how could we improve?’ Evidence may take a variety of forms depending upon the organization. 1.5. NEED AND SCOPE OF THE PROJECT  The Excellence Model provides a holistic framework that systematically addresses a thorough range of organizational quality issues and also gives attention to impacts through the ‘results’ criteria.  It provides a clear diagnosis of an organization’ activities and is useful for planning as it makes links between what an organization does and the results it achieves, highlighting how they are achieved.  It seeks to instill a culture of continuous improvement.  It is flexible enough to be used in bite-sized chunks or for specific issues – e.g., an analysis of an organizations’ environmental policy in less than a single day as well as providing a framework for a comprehensive review of all the organizations’ activities over several months.  There is no requirement for external validation and the Excellence Model can be used as an internally driven self-assessment tool allowing an organization to be as honest and as open as possible in gauging its performance.  ‘Scoring’ can provide an organization with an internal benchmark for its next self-assessment, in order to capture trends. It can also be used among organizations for some external benchmarking and comparison.  The Excellence Model stresses the importance of consensus in assessing organizations’ strengths and areas to improve.
  • 14. - 14 - 1.6. OBJECTIVE OF THE STUDY  To achieve and sustain outstanding levels of performance that meets or exceeds the expectations of all their stakeholders.  To study the ‘PARTNERS AND RESOURCES’ aspect of the BUSINESS EXCELLENCE MODEL in the Process Equipment Division at Godrej & Boyce Mfg. Co. and analyse the ‘FINAL RESULTS’.  To analyse the employee motivation levels on receiving the Kaizen awards. 1.7. RESEARCH METHODOLOGY Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, “research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions. Sampling Design- A sample design is a finite plan for obtaining a sample from a given population. Random sampling is used for this study.A finite subset of population, selected from it with the objective of investigating its properties called a sample. A sample is a representative part of the population. The response to various elements under each questions were totaled for the purpose of various statistical testing. For the people results the sample of the survey comprises of the employees at Process Equipment Division. For the data collected regarding the HR policies and initiatives taken, the sample comprised of 2 HR executives within the division who are in charge of the BUSINESS EXCELLENCE MODEL pertaining to the division. Sample Size- sizes of the sample selected are 12. These sampleobtained are the employees of PROCESS EQUIPMENT DVISION in GODREJ & BOYCE Mfg. Co. Sampling Procedure- The procedure adopted in the present study is Random sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample.
  • 15. - 15 - Methods of Data Collection-The data’s were collected through both Primary and secondary sources. Primary Sources- The primary data is collected through questionnaire and interviewing. The data is interpreted by using Graphs and Statistical tools. Secondary Sources- The secondary data mainly consists of data and information collected from records, company websites, journals, magazines, and books. Nature of Research. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. 1.8. LIMITATIONS TO THE PROJECT The limitations of the study are the following:  The data was collected through questionnaire. The responds from the respondents may not be accurate.  The sample taken for the study was only 95% of the total management staff in the division and the results drawn may not be accurate.  Another difficulty was very limited time-span of the project.
  • 17. - 17 - CHAPTER 2 COMPANY PROFILE 2.1 GODREJ GROUPS Established in 1897, the Godrej group has grown in India from the days of the charkha to nights at the call centers. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in the future. His inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s Godrej Empire. One of India’s most trusted brand, Godrej enjoys the patronage and trust of around 500 million Indians every single day. Our customers mean the world to us. We are happy only when we see a delighted customer smile. With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances, furniture, security and agri care – to name a few – our turnover crosses 4.1 billion dollars*. You think of Godrej as such an integral part of India – like the bhangara or the kurta – that you may be surprised to know that 26% of our business is done overseas. Our presence in more than 60 countries ensures that our customers are at home with Godrej no matter where they go. With brands you can believe in, service excellence you can count on and the promise of brighter living for every customer, Godrej knows what makes India tick today. Today, we are at a point in Godrej’s history when our amazing past is meeting up with its spectacular future head on. Godrej is learning and relishing being young again. GODREJ & BOYCE MFG. CO. LTD. Godrej & Boyce Mfg. Co. Ltd., the holding company of the Godrej group, started its journey with the manufacture of high quality locks in 1897. Today, we have 15 diverse business divisions offering consumer, office, and industrial products and services of the highest quality to every corner of India and across the globe. We value integrity, trust, service and respect for individuals and for the environment. We pride ourselves for being one of India’s most respected corporate houses known for our philanthropy and initiation of labor reforms besides being recognized for fair, transparent and ethical dealings. Our people are our assets who are groomed to deliver their best. At Godrej, its more than a career. It’s an opportunity to live your dreams and be part of a culture that nurtures ambitions, challenges and provides freedom to operate and express and your ideas.
  • 18. - 18 - The Godrej Group touches the lives of 400 million Indians who use at least one of our products every single day. Our commitment to quality, attention to detail and customer centricity has helped us earn the trust of generations of Indians. 2.2. ORGANIZATION CHART GODREJ PROCESS EQUIPMENT Godrej Process Equipment is a leader in fabricating unit static equipment for process industries. Established in 1976, Godrej Process Equipment manufactures the entire range of process equipment for end-users in core industry segments like Refineries, Petrochemicals, Fertilizers, Oil & Gas, Chemicals, Pharmaceuticals and Power around the world. Located in the industrial garden of Vikhroli, a northern suburb of Mumbai, in India, the lush green Godrej complex and Godrej Process Equipment’s impressive manufacturing facilities strike the eye. The unit is accredited with following certifications: ISO 9001-2007, ISO 14001-2004BS, OHSAS 18001-2007ASME ‘U’, ‘U2’, ‘U3’, ‘S’NBBI ‘R’, and ‘NB’AD Merkblatt HP0Chinese SELO-Pressure Vessel certificate Chinese SELO-Boiler certificate. Chairman & Managing Director Executive Directorof LAWKIM ExecutiveDirector of Finance ExecutiveDirector Executive Director Precision Engineeri ng Corporate Services Locking Solution s PROCESS EQUIPMENT DIVISION Appliances Security Solutions Constructio n Electricals and Electronics Interio Other SBUs ExecutiveDirectorof HR,IR and Admin
  • 19. - 19 - The bedrock of Godrej Process Equipment operations is its large, highly skilled workforce skilled workmen and trained, competent and highly committed people have repeatedly been able to channelize the knowledge and experience that Godrej Process Equipment has gained over the years, through its robust systems, to ensure that projects are successfully executed on time. Through continuous improvement in quality, a deep commitment to on-time delivery and a clear policy of keeping in step with the latest manufacturing technology, Godrej Process Equipment is fully equipped to meet the challenging demands of its global customers for process equipment. 2.3 BENEFITS GIVEN BY THE COMPANY 1. BENEFITS GIVEN TO EMPLOYEES  Health Insurance and Safety incentives  Bonus and Diwali gift for workmen  Godrej has its own housing society which provides residence to employees  Shuttle service  School and Hospital  Food court  Club including Gymnasium and Swimming Pool  Med claim 2. BENEFITS GIVEN TO THE SOCIETY  Cancer awareness campaigns  Anti-tobacco campaigns  Blood donation camps  Joy of giving  Contribution to help victims of natural calamities  Good and green initiatives
  • 21. - 21 - CHAPTER 3 3.1 THEORETICAL BACKGROUND The concept of business excellence appeared in the late 1980s / early 1990s and evolved from Total Quality Management and the work of W. Edwards Demming. This evolutionary path can be traced from pre-industrial revolution through to the present day. The first stage of the "quality movement" to ensure the basic quality of the product. This gave birth to disciplines such as analytical chemistry and early national standards. The next stage was to reduce costs, from the industrial. The next was to increase consistency and reliability; from mass production to statistical process control. This stage culminated with process management techniques and the development of international standards such as ISO9000. However, as mass production increased, so did the need to ensure workers rights and occupational health and safety. As consumer power grew in the post-war years, measuring customer satisfaction to understand needs and expectations became more important to achieve or maintain competitive advantage. As people identified the link between customer satisfaction, product quality and the motivation of the workforce, employee satisfaction and later employee engagementbecame the focus. On a "parallel path", environmental concerns were coming to the fore. Standards like ISO14001 and EMAS have been developed to help organization ensure compliance and reduce their impact on the environment. The objective of business excellence models, such as Malcolm Baldrige National Quality Award and the EFQM Excellence Model has been to provide a holistic framework that enables organizations assess how well they manage this complex, multi-stakeholder driven operating environment. THE FUNDAMENTAL CONCEPTS OF EXCELLENCE  Achieving Balanced Results  Adding Value for Customers  Leading with Vision, Inspiration & Integrity  Managing by Processes  Succeeding through People  Nurturing Creativity & Innovation  Building Partnerships  Taking Responsibility for a Sustainable Future
  • 22. - 22 - Any Business aims to achieve profits but that will tag the organization as a successful one but for it being an excellent business it has to engrave the various stakeholders as a part of the system and enable their growth along with the company. Godrej aims not just to be successful but be excellent. For being excellent, there are various criteria which has to be sorted out and looked after which are the main head points mentioned above.Achieving balanced results means to sustain the achievements on its way to the top. Customers are the topmost priority of any business. Without customers a business can’t survive. An excellent organization adds value to the customers, empowers them and builds true worth for them. Working without set goals and vision may lead to deep dark hole because there’s no direction provided. Leading with vision, inspiration and integrity enables an organization to be excellent in its working, provides a path and direction to achieve its goals and motivating and inspiring the employees for excellent performance. The leaders of the organization play a major role in sustaining the organization and working its way towards being successful and excellent. Managing by processes include the various processes and policies being followed and the different initiatives taken to improve the working and fill in the gaps and uncertainties. Succeeding through people include another important stakeholder which is the employees. Employees are the building blocks for a company. Hence looking after them is also a priority. An excellent business looks after their employees and empowers them to cultivate their creativity and bring something new. Excellent organizations always encourages creativity and innovation and believes in coming up with new ideas and concepts which will improve the existing ones. Kaizen is one of the processeswhich cater to this. Kaizen is playing a major role in inhibiting the gaps and errors in the existing processes and eradicating them through new innovations and processes which aids in improving the system and achieving sustainability. In order for an organization to be excellent, it also has to manage the external partnerships, suppliers and internal resources in order to support strategy and the effective operation of processes. Every business has a responsibility towards the society. Whatever inputs it gets to run it gets from society so in turn it also has to return back to the society. Working towards social benefits and upliftment is crucial to excellence.
  • 23. - 23 - 1. Leadership Excellent organisations have leaders who shape the future and make it happen, acting as role models for its values and ethics and inspiring trust at all times. They are flexible, enabling the organisation to anticipate and react in a timely manner to ensure the ongoing success of the organisation.  1a.Leaders develops the Mission, Vision, Values and ethics and act as role models.  1b.Leaders defines, monitor, review and drive the improvement of the Organisation’s management system and performance.  1c.Leaders engages with external stakeholders.  1d.Leaders reinforces a culture of excellence with the organisation’s people.  1e.Leaders ensures that the organisation is flexible and manages change effectively. 2. Strategy Excellent organisations implement their Mission and Vision by developing a stakeholder focused strategy. Policies, plans, objectives and processes are developed and deployed to deliver the strategy.  2a.Strategy is based on understanding the needs and expectations of both stakeholders and the external environment.  2b.Strategy is based on understanding internal performance and capabilities.  2c.Strategy and supporting policies are developed, reviewed and updated.  2d.Strategy and supporting policies are communicated, implemented and monitored.
  • 24. - 24 - 3. People Excellent organisations value their people and create a culture thatallows the mutually beneficial achievement of organisational and personal goals. They develop the capabilities of their people and promote fairness and equality. They care for, communicate, reward and recognise, in a way that motivates people, builds commitment and enables them to use their skills and knowledge for the benefit of the organisation.  3a.People plans support the organisation’s strategy.  3b.People’s knowledge and capabilities are developed.  3c.People are aligned, involved and empowered.  3d.People communicates effectively throughout the organisation.  3e.People are rewarded, recognised and cared for. 4. Partnership & Resources Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support strategy and policies and the effective operation of processes. They ensure that they effectively manage their environmental and societal impact.  4a.Partners and suppliers are managed for sustainable benefit.  4b.Finances are managed to secure sustained success.  4c.Buildings, equipment, materials and natural resources are managed in a sustainable way.  4d.Technology is managed to support the delivery of strategy.  4e.Information and knowledge are managed to support effective decision making and to build the organisational capability.
  • 25. - 25 - 5. Processes, Products and Services Excellent organisations design, manage and improve processes, products and services to generate increasing value for customers and other stakeholders.  5a.Processes are designed and managed to optimise stakeholder value.  5b.Products and Services are developed to create optimum value for customers.  5c.Products and Services are effectively promoted and marketed.  5d.Products and Services are produced, delivered and managed.  5e.Customer relationships are managed and enhanced. 6. Customer Results  Develop and agree a set of performance indicators and related outcomes to determine the successful deployment of their strategy and supporting policies, based on the needs and expectations of their people.  Set clear targets for Key Results based on the needs and expectations of their people, in line with their chosen strategy.  Demonstrate positive or sustained good People Results over at lease 3years.  Clearly understand the underlying reasons for and drivers of observed trends and the impact these results will have on other performance indicators and related outcomes.  Anticipate future performance and results.  Understand how the Key Results they achieve compare to similar organisations, and use this data, where relevant, for target setting.  Segment results to understand the needs and expectations of specific groups within their organisation.
  • 26. - 26 - 7. People Results  Develop and agree a set of performance indicators and related outcomes to determine the successful deployment of their strategy and supporting policies, based on the needs and expectations of their people.  Set clear targets for Key Results based on the needs and expectations of their people, in line with their chosen strategy.  Demonstrate positive or sustained good People Results over at lease 3years.  Clearly understand the underlying reasons for and drivers of observed trends and the impact these results will have on other performance indicators and related outcomes.  Anticipate future performance and results.  Understand how the Key Results they achieve compare to similar organisations, and use this data, where relevant, for target setting.  Segment results to understand the needs and expectations of specific groups within their organisation. 8. Society Results  Develop and agree a set of performance indicators and related outcomes to determine the successful deployment of their societal and ecological strategy and related policies, based on the needs and expectations of the relevant external stakeholders.  Set clear targets for Key Results based on the needs and expectations of their external stakeholders, in line with their chosen strategy.  Demonstrate positive or sustained good Society Results over at least 3 years.  Clearly understand the underlying reasons and drivers of observed trends and the impact these results will have on other performance indicators and related outcomes.  Anticipate future performance and results.  Understand how the Key Results they achieve compare to similar organisations and use this data, where relevant, for target setting.  Segment results to understand the experience, needs and expectations of specific stakeholders within Society.
  • 27. - 27 - 9. Key Results  Develop and agree a set of key financial and non-financial results to determine the successful deployment of their strategy, based on the needs and expectations of their key stakeholders.  Set clear targets for Key Results based on the needs and expectations of their key stakeholders, in line with their chosen strategy.  Demonstrate positive or sustained good Key Results over at least 3 years.  Clearly understand the underlying reasons and drivers of observed trends and the impact these results will have on other performance indicators and related outcomes.  Anticipate future performance and results.  Understand how the Key Results they achieve compare to similar organisations and use this data, where relevant, for target setting.  Segment results to understand the performance levels and strategic outcomes achieved within specific areas of the organisation 3.2. DATA ANALYSIS& INTERPRETATIONS In this project emphasis has been put on the ‘PARTENERS AND RESOURCES’ criteria of the model. PARTENERS AND RESOURCES Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support strategy and policies and the effective operation of processes. They ensure that they effectively manage their environmental and societal impact.  4a.Partners and suppliers are managed for sustainable benefit.  4b.Finances are managed to secure sustained success.  4c.Buildings, equipment, materials and natural resources are managed in a sustainable way.  4d.Technology is managed to support the delivery of strategy.  4e.Information and knowledge are managed to support effective decision making and to build the organisational capability.
  • 28. - 28 - 4a.Partners & Suppliers managed for sustainable benefit Competent business partners are a key success factor for long term competitiveness & we strive to establish mutually beneficial relationship to leverage competencies of our partners. Vendor partnership is the most critical attribute directly impacting on material cost. Our partners and suppliers are managed by the guidelines mentioned in our IMS Manual. 4a1. Segment & Differentiate partners and suppliers In line with organization strategy & adopt appropriate policies and processes for effectivelymanaging them We at Godrej PED believe in the strong alliance between us and our suppliers & partners. Competent business partners are a key success factor for our long term competitiveness. Partners are identified based on impact on business & relevance to mutual success. (Refer fig 4a1) Partnership Matrix SOURCE: - COMPANY DATA
  • 29. - 29 - PARTNERS ENGAGEMENT ACTIVITIES 1. Customer JointDevelopmentprojectsonQualityandlogistics 2. Directmaterial Supplier Vendorevaluationandrating 3. Indirectmaterial suppliers Supporton developmentprojects 4. Serviceprovide Outsourcing 5. Logistics In-outboundlogisticsupportandclearing 6. NGO Supportfor CSRactivities 7. Society Welfare of society 8. Educational institution Managerial trainingcourses To support key functions in organization and to ensure projected growth in new products; we have identified and differentiated sour partners as follows:- 1) Customers: - Customers are our strategic business partners. Godrej PED ensures that there will be customer centricity in each and every function of the business. We design our processes; equipment’s and products considering the end user requirements. Our customers give us an opportunity to learn and to come across stringent technical requirements which results in improving our own core competency. 2) Direct material Suppliers: -From total purchase values; Direct purchase share is 70%. Direct suppliers are our main source of plates; Forgings; Fasteners; Tubes; Gaskets. Selection of these vendors is based on:- a) Technical competence and Quality b) Cost competitiveness c) On time delivery These vendors plays significant role during the pre-bid activities Performance of the vendor is reviewed through the system ’’ Vendor Evaluation & Rating ‘’. It is based on the formulae:- Overall Rating = Delivery rating + Quality rating + Rework rating Where, Delivery rating = (Qty supplied / Qty ordered) x Penalty factor x delivery weightage (50%) Quality rating = (Qty approved / Qty supplied) x quality weightage (30%) Rework rating = Rework Weightage (20%) For Overseas vendors average overall rating per 6 months should be 60. For local vendors overall rating per 6 months should be 70. This rating is done twice in year.
  • 30. - 30 - 3) Indirect Suppliers: - From total purchase value; Indirect supplier share is 70%. These suppliers are the sources of the material which we need for maintenance; shop consumables; wooden items; safety related material etc. Indirect suppliers are involved in the development projects on shop which results in productivity improvement. These vendors are also involved in development of new tools; machines and consumables 4) Service providers: This category includes our subcontractors; hiring service providers; labour contractors; scrap collection dealers. We outsource machining and fabrication activities through our subcontracting team. Hiring service providers ensures availability of bolt tensioners; compressors; generators. Labour contractors provide required manpower with desired skills. Scrap dealers collect scraps and dispose it off in the prescribed manner. 5) Logistics: - Logistics providers give support for inbound and outbound logistics. It also includes octroi agents; freight forwarding agents 6) NGO: - Godrej & Boyce Believes in the sustainable growth and contributes to the society by active support to NGOs like ‘’ War wounded foundation’’ which takes care of injured service personnel and ‘’ Republican sports club ‘’ which promotes hockey to poor children in society. 7) Society: - As a value we trust in upbringing of the society and welfare of the workers. Events like health check-up camp; blood donation camp encourages deep sense of belonging towards society. 8) Educational institutes :- We have Partnership with well-known educational institutes like ‘’ Warwick Institute of management ‘’, ‘’ symbiosis institute of management studies’’, ‘’ IIM Calcutta’’ . These well-known institutes offers customized designed management courses for our managers; and makes them capable to withstand new responsibility in future. We are helping the venders to improve: 1) As a part of vendor improvement; we call vendors in Godrej PED. During visit we involve different functions like QC/Welding/Design/Shop etc. so that our expectations from vendors can be clearly communicated. 2) We make vendors aware about best practices being followed in the industry. 3) Supplier evaluation activity in co-ordination with QA team helps vendors to understand area of improvements
  • 31. - 31 - The venders helping us to improve 1) Our purchasers as well as our technical team visits vendors and understand the process from learning point of view. It improves our employee knowledge base 2) Many good practices being followed at vendor’s place like kaizen and TPM; Visual control; housekeeping can be implemented in Godrej PED. 3) During interaction we come across current happening s market. We can treat this as a good input and consider it during formulating our strategies. Motivating the Suppliers 1) We are making annual rate contracts with the vendors for SIC items by which vendor get assurance for continuous business from vendors. 2) During order execution; if due to some issue vendor stuck up in then we assist him by using Godrej influence. This helps to maintain delivery schedule 3) We motivate suppliers to get themselves approved from well-known agencies like EIL/SABIC/RIL this improves supplier’s credentials. Plan the new Initiatives in phase manner in development 1) We are planning for supplier re-evaluation of vendors. Also are also planning for new vendor evaluation 2) We are taking new assignment for developing new vendors which are already approved by our clients Selection Criteria of vendor 1) Manufacturing facilities available with vendor 2) Technical compatibility 3) Financial stability 4) Current customer list 5) Approval from TPI agencies 6) Current supplier list 7) Industry reputation 8) Location 9) After sale Service 10) Credit period
  • 32. - 32 - Communication matrix SOURCE: - COMPANY DATA 4a.2 Supplier meets Plan Criteria’s for calling / selecting venders for meet Identifying need and expectation of the venders Why do we have suppliers meet? Our expectation from them Best practices followed by us Open House Success story of our good suppliers Our Policy Rewards and Recognition - Criteria to give awards Proper schedule Budget, Venue and guest Direct+ indirectpurchase + subcon vendorsitevisits Understandcurrentorder status and followup As andwhen required Direct+ indirectpurchase+ subcon+service+ logistics contract finalization Negotiatingandfinalizationprice, and othertermsand conditions of Purchase order/ contract As andwhen required Direct+ indirectpurchase+ subcon+service+ logistics suppliermeet To gather partnersandobtain feedbackaswell assharing Godrej & Boyce PED plansto them once in year Educational institutes trainingcourses GivingLearningopportunityto professionalsinorganizationfor self-upgradation once in year Customers reviewmeeting to make customersaware about currentprogressof ongoing orders As andwhen required society blooddonationcamps/ healthcheckupcamps to improve sense of belongingto the society once in year NGO Standardchartered Mumbai marathon to raise fundsfornoble clause once in year
  • 33. - 33 - Need & Expectations of vendors  As a continuous improvement process; we encourage our suppliers to give feedback & suggestions while doing business with Godrej & Boyce PED. We have received feedback as follows.  Vendors have acknowledged Godrej & Boyce PED support to them in last financial year 2013-14  Our suppliers are keen to continue business with us  L & T Steel have suggested to improve on delay in vehicle placement  Heavy metal has raise concern that Godrej PED is approaching heavy metals only if clients are critical. In non-critical projects; they are ignored  Ratnadeep metal asked to improve on fast document clearance i.e. invalidation certificate.  Forging vendors have suggested to improve on fast QAP approvals; Drawing approvals.  Rejections related to Drg/MTO/Baan text mismatch also need to be addressed. 4b. Finances are managed to secure sustainable success – PED’s financial policies are governed by Corporate Finance’s Guiding Principles. Based on Pending Orders on Hand and inputs given by marketing with respect to expected orders which are executable in next year, the ABP Billed Sales are finalized and communicated by DH. Finance collets data with respect to Cost Sheet and Departmental expenses and CAPEX Budgets and formulates ABP. The same is translated into monthly deliverables based on the monthly Targeted Billed Sales plan prepared by PMC for the year. Budget for CAPEX is planned considering short term as well as long term Strategic Initiatives. The process of Financial Analysis and Planning is in place for reporting, control and review of financial resources. Divisions Financial reporting and review mechanism includes reporting to DMC and all functional Heads (Performance Management Systems Data giving details of YTD ABP vs Actuals data against each element of ABP), Internal Functions (Indirect Material Consumption, Tooling Expenses), Corporate Finance (Marketable Production, Stocks, Monthly Provisions and Internal Audit Reports) and CMD & Executive Directors of G & B (Business Review – Variance Analysis and Working Capital Trend and variances against ABP). Corporate Governance and Internal Control Systems is through process of ‘Audits and Internal Controls’. Corporate Internal Audit department reviews the processes and internal Control Mechanisms. Internal Audit Report is presented to DH. This is reviewed by Corporate Audit Committee headed by Director. Actions Taken are submitted by concerned departments to Internal Audit Departments. Separate Authorization Matrix is in place for approval of Purchases (Material procurement, Subcontracting and Logistics Expenses) and for Treasury Expenses. Similarly Authorization Matrix is in place for Approval of Sales Order Booking
  • 34. - 34 - 4c. Buildings, Equipment’s, Materials and Natural Resources are managed in a sustainable way  With Total Productive Maintenance (TPM) coming into force, policy has been applied for asset management, to improve and sustain the reliability, availability and maintainability of the equipment. As a vision towards journey to sustainable excellence, Godrej Process Equipment (GPE) manages Quality and EHS supported by IMS policy.  Towards natural resources, GPE has taken several initiatives on MSG, conservation of energy, power and gases SOURCE: - COMPANY DATA SOURCE: - COMPANY DATA 1099 1182 963 2533 0 1000 2000 3000 2010-11 2011-12 2012-13 2013-14 CompAir consumptionin 1000 KWH
  • 35. - 35 - SOURCE: - COMPANY DATA SOURCE: - COMPANY DATA  During ABP, plan is made and followed for optimum utilization of existing assets. Similarly, Capex is planned looking at the orders in hand and probable areas of diversification or expansion.  Based on the above inputs decision is taken on addition of new assets. Looking at the current order booking, several Low Cost Automation (LCA) projects are taken up. This helps in improving productivity, reducing manufacturing cost which even leads in reduction of capital expenditure.  Regarding infrastructure upkeep, Construction division expertise is utilized, such as buildings etc. Through proper plan and strategy, the inspection, repair & maintenance of building are done by them. Similarly, maintenance of the power supply (HT and LT) and utilities is taken care by E & E division. These are coordinated by GPE. GPE yearly average expenditure on these is Rs. 700 Lacs. GPE has indications for important locations such as exits, emergency assembly points, water shower, eye washer, fire extinguishers and hydrants.  To ensure security of the assets and raw material, GPE has proposed an expenditure of Rs. 75 lacs to install CCTV system with face recognition. OEP is in place to manage any exigencies. Ambulances and fire tenders are available in the premises. Buildings, equipment’s and stocks are insured for fire and natural calamities and are renewed yearly. Data security is assured by extensive back up procedures, supported by GITL.  As a unit to cater world class asset management, we partnered with CII in 2009-10 for TPM implementation. In 2010, GPE appointed TPM coordinator after TPM kick-off on Aug 2010, 100 critical machines were identified based on PQCDSME for improving OEE by implementing JH, KK and PM pillars. 688 664 481 538 0 200 400 600 800 2010-11 2011-12 2012-13 2013-14 Cop.Air consumptionper ton of Production
  • 36. - 36 -  Refer below chart for TPM implementation status. Maintenance of the equipment’s is managed through processes of ‘Breakdown Maintenance’ and ‘Preventive Maintenance’. Percentage maintenance hours on critical machines reduced and MTBF increased in the due course of time as a result of implementation of PM pillar, whereas MTTR reduced and OEE improved due to increase in critical machine.  Adherence to preventive maintenance plan is above 98%. Breakdown history and action are recorded in online “G-CALL” system. Equipment’s’ health is being monitored and maintained through CLIT practices and adherence to Preventive Maintenance plan. Re-conditioning plan is formulated based on experienced maintenance team and condition monitoring is planned to put into force in the current fiscal year. Water leakage 2014 SOURCE: - COMPANY DATA Gas leakage 2014 SOURCE: - COMPANY DATA
  • 37. - 37 - Oil Consumption Pattern SOURCE: - COMPANY DATA 4d. Technology is managed to support the deliveryof strategy. Manage TechnologyPortfolio: Our Technology management involves development new product line, latest welding/NDT Technology, Latest fabrication facility, design and fabrication capability for various codes and standards. We have Annual Business Plan (ABP), Strategic Business Plan ( SBP) and 10 X 10 to establish the strategies and policies for our business needs. Our sales and marketing Team has continuous focus in emerging market to determine area of investment, development for new product line which are aligned with overall business strategies. This involves creation of new fabrication facility and procurement of new machinery required to enhance the fabrication capability. Currently, an additional fabrication facility is under development in Dahej to scale up the production capability. Development projects are initiated by marketing Team through Project Information Meeting with relevant departments to understand the technology need and fabrication plan.
  • 38. - 38 - Table-2: The current product line.PressureVessels • HDS/HDT Reactors • Tubular Reactors • PP Reactors • Coke Drum • Other high criticality/ heavy walled reactors • PTA Reactors • CCR • HP Separators •Ammonia Convertors •Secondary Reformers •Fractionation/Distillation Columns • Steam Drum Shell&Tube HeatExchanger • High Pressure HeatExchangers • Lummus Advanced Breech-LockExchangers • Helix changers • Feed Water heaters Trays& Internals • Reactor internals • Ripple Trays • MD Trays • Sieve, valve,chimney trays • Tower internals Table-3: List of certification. All fabrication capabilities, Quality Management System, Process systems are continuously evaluated and audited by end users, EPC, Process Licensor and Third Parties to meet their requirements. Exploration of new technology to improve the process is based on the customer needs and feedback, visit to various exhibition, Technical Seminars, Journals and input from relevant stake holders. Certificate Name Certifying Authority ASME 'U' ASME ASME 'U2' ASME 'U3' ASME 'S' ''R' National Board''NB' People’s Republic of China – Boilers SELOPeople’s Republic of China – Pressure Vessels ISO 9001 LRQAISO 14001 OHSAS 18001 HP 0 TUV Nord. DIN EN ISO 3834-2 IBR Directorate of Steam Boilers, M.S.
  • 39. - 39 - Involve relevant stake holders: We involve and work with relevant third parties, Process Licensors and client to develop new product line. Godrej Process Equipment has technology partnership with LUMMS for heat exchanger design. Development projects are jointly taken up with material and machine manufacturer to improve our process. For example, in welding technology, development projects are jointly taken up with welding consumable manufactures to improve the productivity and Quality. We involve experts and consultants like TWI-The Welding Institute, UK for all technology solutions. Table-4:List of Developmental Projects Development of Breech Lock Heat Exchanger in design and fabrication: • Mock-up equipment was designed and fabricated under inspection of LRA and EIL. • Subsequently, a Breech Lock Heat Exchanger designed, fabricated and supplied to RCFL, India. (Project No.: 130979). • Further, a development project is initiated to develop a fabrication capability for High- High Type Breech Lock Heat Exchanger. Development in Power Sector Equipment : • Separate sales and marketing team is formed to have more focus on this sector. • To improve the capability of tube sheet drilling for the Power sector equipment which are large in size, two drilling machine are procured. Development in Urea Process Plant Equipment.( Stamicarbon License ) : • Stamicarbon is one of the leading Process Licenser for Urea Process Plant. • We executed several mock-ups under witness of Stamicarbon to get approval from them for design and fabrication of Urea plant equipment using their technology. Development in Coke Drum Equipment’s: Many initiatives are taken to get an approval from customer to design and fabricate Coke Drum Equipment’s. In one of the initiatives, we executed several mockup under witness of Foster Wheeler to get approval from them for design and fabrication of Coke Drum Equipment’s. Development in Cr- Mo- V Equipment’s: Hydro Treatment Reactors made of Cr-Mo-V is one of the very difficult metallurgy to fabricate. In order to prove our capability, we executed several procedure qualifications which include the butt joint and overlay procedure with step cooling treatment and hydrogen disbanding Test.
  • 40. - 40 - Development of Multiwall Reactor for Fertilizer Plant : Developmental project is initiated to design and fabricate mock-up equipment under LRA. Development of Zirconium Heat Exchangers: Heat Exchanger made of Zirconium is one of the very difficult Non Ferrous exhotic metallurgy to fabricate. In order to prove our capability, we executed procedure qualifications and presented to customer. Identify and evaluate alternative and emerging Technology New product line and new manufacturing facilities are strategically decided by10 x 10 process method to support the future organization needs. Environmental needs like waste management and control, Noise level management and control, Natural resource conservation, gas conservation, energy consumption are managed as per regularity authorities’ norms. Use of Technologyto support the culture of creativityand innovation We use many software Technologies to support departmental function, for example, Wrench - This software is used for document management. This software allows quick access and share the document information between departments and automatic work flow management system for prepare, check and approve the document. We use ERP system called "Baan" for all manufacturing function. BaaN system is suitably developed to eliminate manual process and user friendly process. Kaizen concepts used to bring out innovation from employees which are maintained in online system. Refer Table-5: List of Information Technology. Design Software: • HTRI Xist (Thermal Design) • PVElite • Microprotol CAD & FEM Software: • ANSYS • Pro-E Wildfire • Autodesk Inventor • Auto Drafting Parametric Software • AutoCAD Primavera Project Planner P3e - Multi-projects Scheduling & resource balancing, Online schedule updating & monitoring using Primavera Progress Reporter. BaaN - Interface with AutoCAD to generate online CBOM in BaaN, Inventory Management, Procurement, Monitoring Raw Material & WIP, Monitor cost variance, For issuing ‘welding consumable issue cum instruction slip’. Wrench - Document management system.
  • 41. - 41 - 4e. Information and knowledge are managed to support effective decision making and to build the organizational capability.  Information Flow  In order that top management is provided with accurate and sufficient information to support timely decision-making, both system-generated and manual reports are available.  Primavera software gives a top-level reporting of the project status. Wrench gives document status and Baan provides resource planning status. These are used for reviewing project status, course-correction and decision-making.  Department-wise reports are also available such as HRIS, Speed flow, Kaizen reports, Gcall, etc.  Manual reports such as RT defects, OEE and shell rolling reports are also utilised in carrying out decisions.  Knowledge Capture  There are several ways by which collective knowledge of employees is captured and shared. One of the methods is Kaizen ideas and PMO improvements. These are discussed and incorporated in departmental activities. Once a month, employees are invited for an SOS session in which improvements by groups of people or individuals is presented to the rest of the Divisional team members.  Knowledge is also captured in project closure meetings. Lessons learnt while executing project are discussed in these meetings. This is utilised to generate ideas for future projects.  Interactions with clients, consultants, inspection agencies and suppliers are also captured, and these are used for improvements and innovation.  Ideas generated in weekly review meetings are also captured and implemented.  Protection of Intellectual Property  The Document Management Software, Wrench, has user-level and group-level access. This ensures security of documents as well as intellectual property.
  • 42. - 42 -  Access Control to Information  Access to information can be given to externals customers in the following ways:  Online tracking of information by suppliers and customers.  Currently, project status is informed to the customers periodically by means of emails. Primavera project monitoring can be utilised to give access to customers so that real-time monitoring can happen.  Learning and Collaboration Network  Ideas from consultants (Takao-san, Mr Srinivasan), social networking sites, etc. can be utilised to identify creativity, innovation and improvement. Ideas and improvements from these sources are formally recorded and implemented. Such ideas are then transformed into reality with specific time targets so that advantages can be gained to maximise output and productivity. 3.3. FINDINGS Findings from data analysis on kaizen KAIZEN HIGHLIGHTS OF PED KAIZEN: - “Improvement” or “change for the best” refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, business management or any process. Here in Godrej, at Process Equipment Division, Kaizen methods are applied to its fullest use and implemented to increase the productivity and hence, enhance efficiency in the entire working process. To summarize, over the years the division held pride in progressing year after year in most aspects of kaizen. More and more kaizens are implemented and participation is also increasing. As the PEDians believe that ‘Quality than Quantity’, PED is no.1 division as far as no. of level 1 kaizens are accounted in the past 2 years. In 2012-13, there were a total of 220 kaizens and in 2013-14; there was a total of 297 level 1 kaizens. Pride moment for PED:- PED won 2 prestigious awards in Godrej & Boyce annual kaizen competition in 2013-14. Categories of the awards won are as follows:-  Best kaizen in workmen category.  Best kaizen in management category.
  • 43. - 43 - Following are the progress trends of few aspects of kaizen:- 1. NUMBER OF KAIZEN As, ‘a picture is worth a thousand words’, ‘a kaizen is worth a thousand efforts and ideas’. With more and more kaizens being implemented it is enhancing the working process of the system. As shown in the below figure, the number of kaizen has increased considerably over the years and has crossed the target with flying colors setting a benchmark for the next financial year. 0 500 1000 1500 2000 2500 3000 3500 4000 2011-12 2012-13 2013-14 NUMBER OF KAIZEN actual target 1751 3338 375 3389 2. PARTICIPATION PERCENTAGE Such happiness as life is capable of whatever comes from the full participation of all our powers in the endeavor to wrest from each changing situations of experience its own full and unique meaning. Similarly here in PED, the participation of the people in kaizen and their powers of creative thinking and new ideas mark the progress of kaizen as is noted till date. From the below figure it can be deduced that the participation percentage has increased exponentially over the years and has also crossed the targets with considerable values setting higher targets for the successive years. 0 10 20 30 40 50 60 70 80 90 100 2011-12 2012-13 2013-14 PARTICIPATION PERCENTAGE ACTUAL TARGET 22.6 75.9 91.3 85 72
  • 44. - 44 - 3. RESULT AREA-WISE KAIZEN MOTIVATION TRENDS ANALYSIS ON RECEIVING KAIZEN AWARDS Our biggest roadblock to success is identifying our own true potential and the great heights we are capable of reaching. As truly said, “the sky is never the limit”, anything can be achieved if we aim high and proper execution of our creativity. Here at Godrej, exceptional thinking and creativity is highly embraced. The winners of the KAIZEN awards in Process Equipment Division prove that the sky was never the limit for them. Among 14 categories of awards, 43 stood out as winners and proud bearers of the award. All the winners feel highly motivated and are geared up for fulfilling even more expectations from them as now the bars have been set high. Their results have set benchmarks for others and will also inspire them to portray such phenomenal ideas and outcomes. Many factors were responsible for their success, for some of them “try, try till you succeed” using various alternatives stood out, for some thinking out of the box to reduce time and efforts and hence more productivity, for some past history of same problems and working their way out of it, and while others credit inspiration from management as their key factor for success. But above all the most prior factor was teamwork. 1277 584 527 427 283 213 78 Area Wise Results Productivity Safety Quality Morale Delivery Cost environment
  • 45. - 45 - The winners are also helping out others to guide them, and suggesting ideas, and sharing their mantra of success so that even others can achieve what they have achieved and the efficiency and productivity of the division can reach skyrocketing limits. They all feel satisfied to their heartiest content for being recognized and receiving such great critical acclaimof their efforts. This award recognises your performance and gives you recognition among others. Strongly Agree Agree Neutral Disagree Strongly Disagree Feel motivated after receiving this recognition Strongly Agree Agree Neutral Disagree Strongly Disagree
  • 46. - 46 - Other alternatives you suggest to motivate people further career growth regular feedback from evaluators senior executive's appreciation on innovative ideas publicising the achievements on intranet Helping others to carry out kaizen Yes No Not yet but will do henceforth
  • 47. - 47 - 3.4 SUGGESTIONS/RECOMMENDATIONS  DSS is not quite redefined which needs to be worked upon.  Risk management practices have to be more enhanced and reliable.  Inclusive of macro level investment plans.  Capex budgeting is done which needs to be more redefined and continuous updating according to day-to-day changes in external and internal factors affecting the budget plan.  There should be formal interactions regarding external trainings so that knowledge sharing can be enhanced.  Scheduled time for on job training can enhance the learning opportunities more.
  • 48. - 48 - 3.5 BIBLIOGRAPHY  CII STUDY MATERIAL FOR BUSINESS EXCELLENCE MODEL  EFQM PUBLICATIONS- EFQM MODEL  MEASURING BUSINESS EXCELLENCE- GOPAL K. KANJI  BUSINESS EXCELLENCE-THE INTEGRATED SOLUTION TO PLANNING AND CONTROL BY PHIL ROBINSON WEBLIOGRAPHY  WIKIPEDIA  GOOGLE  YAHOO  EFQM.ORG
  • 49. - 49 - 3.6 ANNEXURE (Questionnaire) QUESTIONNAIRE 1 GODREJ NAME: - AGE:- DESIGNATION:- PLANT:- WORK SPECIALIZATION:- 1. FOR WHICH KAIZEN YOU GOT AWARD? 2. HOW DO YOU FEEL AFTER WINNING THIS AWARD? 3. HOW YOU GOT THE IDEA OF DOING THIS KAIZEN? WHICH FACTORS HELPED YOU TO COMPLETE THIS KAIZEN? 4. DO YOU FEEL THAT THIS AWARD RECOGNISES YOUR PERFORMANCE AND GIVES YOU RECOGNITION AMONG OTHERS? o STRONGLY AGREE o AGREE o NEUTRAL o DISAGREE o STRONGLY DISAGREE
  • 50. - 50 - 5. DO YOU FEEL MOTIVATED AFTER RECEIVING THIS RECOGNITION? o STRONGLY AGREE o AGREE o NEUTRAL o DISAGREE o STRONGLY DISAGREE 6. DO YOU FEEL THERE ARE OTHER WAYS WHICH WILL MOTIVATE YOU FURTHER? 7. ARE YOU HELPING OTHERS TO CARRY OUT KAIZEN? o YES o NO o NOT YET BUT WILL DO HENCEFORTH 8. IN WHAT WAYS ARE YOU GUIDING OTHERS TO CARRY OUT KAIZEN? 9. WHAT DO YOU FEEL IS THE SECRET FOR YOU EFFICIENT PERFORMANCE? 10. DO YOU FEEL SATISFIED WITH THIS CRITICAL ACCLAIMOF YOUR PERFORMANCE? 11. WHAT OTHER ALTERNATIVES WOULD YOU SUGGEST TO MOTIVATE THE PEOPLE FOR BETTER PERFORMANCE?