Tqm Project

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  1. ACKNOWLEDGEMENT We are grateful to Allah almighty, for enabling us to fulfill this tiring, but interesting job for the completion of our report. We would not be going…
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  • 1. ACKNOWLEDGEMENT We are grateful to Allah almighty, for enabling us to fulfill this tiring, but interesting job for the completion of our report. We would not be going to do justice in presenting this report without mentioning the people around us who have been inextricably related with the completion of this report. We would like to express our heart felt thanks to our course teacher Prof. Sajid for his support and guidance, which he rendered through out the study to peruse this report. It could not have been possible to accomplish this report without his thoughtful guidance and expertise. We would also like to thank the management of METRO CASH AND CARRY for permitting us to conduct the interviews from their I.T department and for supporting us in the whole procedure. Finally, for any all too fallible errors, omissions and shortcomings in the writing of the report only we are responsible for which we hope that all concerning regards of this report will forgive us.
  • 2. CONTENTS • Synopsis • Company’s profile • History • Metro cash and carry principles • Metro in Pakistan • Mission statement • Facts and figures • Type of business • Metro cash and carry Pakistan wholesale centers • Up coming projects • Metro’s image as an employer • Metro’s guiding principles • Research proposal • Research design • Research questions • Brand of products or Product range • Location • Methods of business • Technology using • Role of IT in pricing • Trainers • Role of IT in Networking • Metro customer • Customers record • Role of IT in preservation of food • Security system and integration • Customer services • Staff recruitment • Metro post • Know how to modern technology • TQM at Metro • SWOT Analysis • Interpretation • Problems • Suggestions • Interview
  • 3. SYNOPSIS METRO Cash & Carry – this name stands for one of the great success stories in modern commerce. A wholesale departmental store with two branches working in major cities of Pakistan. The unique wholesale business-to-business model of METRO Cash & Carry is focused only towards professional customers such as hotels, restaurant, and caterers as well as small and mid-sized retailers. METRO Cash & Carry offers this target group a greater efficiency than the multilayered supply chain thus helping them to improve their business: By offering them a one-stop solution for their purchases, by helping them to improve their assortment, by offering them high quality products at reasonable and transparent prices and by offering them a consistent supply source. The chief interest of our study is I.T department. So we have paid special attention on its networking, methods, technology, record keeping and other aspects of I.T department. The software used by the company is enough to meet the needs of the company’s set up. In order to get accurate and reliable information, we personally interviewed people from the I.T department. We asked them the role of I.T department in the working of METRO Cash and Carry, the method of training of there staff, METRO customers and so fourth. The company’s management is paying special attention to keep its technology up to date and hiring employees who are proficient in dealing with it. However the company’s data base is user friendly, even then, the company gives training to its employees with regular intervals. The department we have taken into consideration is paying a very important role in the success and development of metro cash and carry. The people working in this department are highly skilled and trained. People from different countries come to give training to the employees. The prices of the products at metro are affordable and wide variety of products is available as well.
  • 4. Company’s Profile METRO Cash & Carry is a reliable partner for more than 20 million professional customers worldwide. It gives them a clear competitive advantage in their own markets. Professionals can purchase everything they need to run their business: A restaurant owner, for example, can buy food like fish or vegetables as well as kitchen equipment and office supplies. METRO Cash & Carry offers an exceptionally wide range of high-quality products under one roof. Depending on the size and type of wholesale center, the assortment includes up to 20,000 items in the food range and 30,000 items in the nonfood sector. As the name implies, METRO Cash & Carry customers select their own items and take them with them to their restaurants and shops. With this unique business-to-business concept, the company has grown to become a leading international player in self-service wholesale. After its success in Lahore, METRO Cash & Carry Pakistan (Pvt.) Ltd. opened its second wholesale center located in Islamabad on 3rd April, 2008. Locations Lahore: Thokar Niaz Baig, Multan Road Islamabad: Sector I-11/4, Near Railway Carriage Factory Company’s Hierarchy • Managing director • Director(operation) • Director(administration) • Director(food) • Director(non-food) • Managerial staff • Other employees
  • 5. METRO CASH AND CARRY PAKISTAN Pvt. Ltd. History METRO Cash & Carry was founded in 1964 with the first store opening in the German city of Mulheim an der Ruhr. METRO Cash & Carry is defined as a wholesaler because of the type of its customer base: exclusively professionals and businesses are allowed to purchase at METRO Cash & Carry centers. The “cash & carry” concept works on a principle where customers select their merchandize at the store, pay in cash and transport it themselves. This revolutionary sales concept is geared towards the specific needs of commercial customers and is the backbone of the company. In 2004, its jubilee year, METRO Cash & Carry International alone succeeded in increasing its revenues by 5.4 percent. This enabled METRO Cash & Carry to emerge as the biggest sales division of METRO Group, the third largest retailer worldwide. Today, METRO Cash & Carry is one of the largest international wholesale companies in the world, operating more than 600 outlets in 30 countries. METRO offers a high-quality assortment of products, ranging between 20,000 and 50,000 items, all under one roof. The entire range offers an excellent price-to-benefit ratio. 10 METRO Cash & Carry Principles The success of the company is based on the following principles: • Focus on professional customers • One-stop shopping • Efficient store concept designed for professional needs • Advanced customer service • Enhanced customers’ competitiveness • Excellence in supply chain and quality management • Strengthening of local suppliers • Development of national infrastructures • Career opportunities • Internationally, transferable concept
  • 6. Introduction METRO in Pakistan METRO Cash & Carry announced its operations in Pakistan in January 2006. Since then, it has established itself as a potential market leader in wholesale. METRO is an international modern wholesaler offering a mix of food and non-food products to its registered card-holding customers through a national network of cash and carry outlets. This concept offers a wholesale solution to professional business needs. Under the supervision of Managing Director Mr. Giovanni Soranzo, METRO Cash & Carry Pakistan has opened its first store in the city of Lahore in October 2007. The company’s country head office is also based in Lahore and currently employs over 400 people in two offices. METRO Cash & Carry plans to invest in Pakistan on a sustained and reliable basis in the years to come. The company’s unique business model offers potential for a decrease in market prices and promotion of local goods and personnel. Mission Statement: METRO Cash & Carry, international market leader in self-service wholesale, plans its market entry into Pakistan. With this move, the retailer would expand both its international presence and its activities in the important growth region Asia. The goal of Supply Chain at Metro is to efficiently handle thousands of orders, shipments and deliveries and ensure that goods arrive at the right place at the right time. Supply Chain Management plays an important role in our high-performance logistics system and enhances our capacity to supply food and non-food products on a daily basis with consistent high quality, diversity and freshness. For the first time in Pakistan, Metro Cash & Carry offers a platform for Fruit & Vegetables equipped with modern accessories for product processing. This ensures hygienic, temperature-controlled, clean and packed fruit and vegetables as per international standards of Hazard Analysis of Critical Control Points (HACCP). If all pre-conditions are met, the first METRO Cash & Carry store in Pakistan could be in operation late 2007. Pakistan would then become the 31st country where the METRO Group is active and the company’s 5th Asian location after China, Japan, Vietnam and India.
  • 7. With this move, METRO Cash & Carry would further solidify its position as one of the world’s most international retailers. METRO Cash & Carry’s business concept of self-service wholesale will in particular benefit small and medium-sized businesses from the restaurant, retail and service sector which will be offered a comprehensive and high-quality product assortment at favorable wholesale prices. At the same time, METRO Cash & Carry also contributes directly to the establishment and further development of modern distribution structures. METRO Group has joined the aid program initiated by President Pervez Musharraf. METRO and Pakistan is growing together. Facts and Figures • Metro cash and carry is a whole sale departmental store with two outlets working in Pakistan. • There are 600 stores of Metro Group in 30 countries worldwide. • The competitors of the company are Makro and Car fore. • The company has a huge house of training in France. • The head office of the company is in Lahore (Thoker Niaz Baig, Multan road). • There are 2600 employees in the head office of metro cash and carry. • There are 200 employees in the I.T department of metro cash and carry. • The company is looking forward 30 stores in Pakistan. • The major customers of metro are business entities. • The company is earning the profit of 3.7 billion. Type of Business Each store is tailored to address the needs of professional customers. It offers a wholesale price that leaves the customer room for healthy margins and provides a one-stop-shop for the customer. It offers following types of items: > Food
  • 8. > Non Food > Own brands In the food range, freshness is the first priority. This is guaranteed by the efficient supply- chain and quality control management they have in-place. In non-food, they offer only products that are up-to-date in terms of technology and design, and meet all safety standards. METRO Cash & Carry Pakistan Wholesale Centers Pakistan’s first wholesale center has opened in Lahore in October 2007, followed by a second store that has recently opened on 3rd April 2008 in Islamabad. This will soon grow into a network of countrywide METRO Cash & Carry wholesale centers. METRO Cash & Carry plans Pakistan market entry First wholesale store has been opened in last quarter of 2007 • Positive business perspective for self-service wholesale • Strong position in Asia’s growth regions
  • 9. Upcoming Projects After the success of first two stores in Lahore and Islamabad, the company is planning to further move on to launch another store in Lahore. Moreover the company has also started to work on a store in Faisalabad. So the company is trying to cover Punjab first, and than other areas of Pakistan. Metro’s Image as an Employer METRO Cash & Carry is the international leading company in self-service wholesale. For over 40 years, the company has been supporting high-volume commercial customers. Today the company is represented in 30 countries and offers its commercial customers up to 50,000 different products (variable from country to country) under one roof. METRO Cash & Carry employs more than 1000,000 people across the world and in many regions is among the biggest employers. Qualified, highly-motivated employees create the foundations needed for successful expansion on an international level and sustained growth of the wholesaling company. A performance-driven approach, openness and international outlook are the corporate culture that we practice. MCC Guiding Principle 1. Trust and Respect • Everybody's opinion counts • Treat every person the same way 2. Open Door Policy • Avoid organizational barriers • Two-way communication • Encourage change and sharing of ideas
  • 10. 3. Empowerment to Personal Responsibility • Allow people to take risks • Consider "making mistakes" as part of the game 4. Be a Role Model • Demonstrate commitment and enthusiasm 5. Setting Clear Personal Objectives and Tasks • Implement a management-by-objectives concept 6. Recognition and Reward • Consider honest and transparent feedback as a "must" • Reward high performance (not only with money) 7. Team Spirit • Encourage maximum team engagement and knowledge 8. Positive Working Environment • Guarantee a safe and healthy working environment • Encourage innovation and creativity 9. Corporate Social Responsibility • Committed to the principles of social responsibility
  • 11. Research Proposal 1-Background METRO International is world renowned for its departmental store. It is a very well organized multinational company, which operates in almost all over the world. The market in Pakistan is surely dominated by Metro. It is trying its best to prove itself to be the No.1 departmental store in Pakistan. 2- Literature Review We are conducting research on IT department of Metro to see the impact of IT on total quality management .In this regard we review many research articles related to this topic which help a lot us a research project a good literature survey provides the foundation for developing a comprehensive theoretical framework, from which hypothesis can be developed for testing. It ensures that no important variable are left out of the study and give clearer idea about the important variable. There are some important articles which we have viewed before conducting our research ARTICLE NO.1 Knowledge Management Using Information Technology: Determinants of Short-Term Impact on Firm Value* By:Sabherwal, Sanjiv : Date: December 1 2005 Subject: Information technology, Organizational learning, Knowledge management ABSTRACT: The importance of knowledge management (KM) processes for organizational performance is now well recognized. Seeking to better understand the short-term impact of KM on firm value, this article focuses on public announcements of information technology (IT)-based KM efforts, and uses cumulative abnormal return (CAR) associated with an announcement as the dependent variable. This article employs a contingency approach, arguing that the KM announcement would have a positive short- term impact on firm value. ARTICLE NO.2 MANAGEMENT OF TECHNOLOGY: MANAGING EFFECTIVELY IN TECHNOLOGY-INTENSIVE ORGANIZATIONS By Wellman, Jerry L : Date: March 1 2006 ABSTRACT: Management of Technology: Managing Effectively in Technology- intensive Organizations by Hans J. Thamhain has been written both as a reference book for practicing managers in high technology environments and as a textbook for courses in technology management. The appendices include policy and procedure. Examples and
  • 12. listings of professional societies that would be helpful to the working professional. Thamhain's use of many real-world examples to frame the description of key points may be useful for both of the targeted audiences. Thamhain's overarching theme is that the management of technology involves ever more complex challenges including task complexity, rapid technology change, brief product life-cycles, complex cross- functional organizations, need for sophisticated people skills, and so on. He argues that although several of those challenges maybe evident in other business environments, the high- technology environment brings together a unique blend of challenges that place correspondingly unique demands on management. ARTICLE NO.3 Industry should help redefine the agenda for technology management education. By Wilemon, David Publication: Research-Technology Management Date: November 1 2004 ABSTRACT: Industry should help redefine the agenda for technology management education. (TM) education programs have kept pace with these changes. Given the importance of TM programs in preparing the next generation of our and business leaders, it is imperative that this question be addressed not just by TM educators and program directors in schools and universities but also by TM practitioners and senior business managers who are critical stakeholders of TM programs. The writer’s objective in this article is to set the context for a renewed debate on TM education in view of the above technology. Changes that have come to the global technology landscape, and more importantly, to call for the active participation of technologists and business managers who have largely been absent from this debate so far. ARTICLE NO.4 The role of information systems in total quality management. Date: September 01, 2007. By Jaak Jurison ABSTRACT: This article presents a conceptual model for describing the role of information systems in a Total Quality Management (TQM) organization and contrasts it with one for a traditional business firm. The model, based on systems theory, provides a framework for understanding the principles of TQM and their effects on information systems (IS). This article suggests that TQM introduces changes in the firm’s feedback loop and creates new requirements for the IS function. The TQM system model is also used for analyzing and comparing TQM with business reengineering.
  • 13. ARTICLE NO.5 The Role of Organizational Climate in the Implementation of Total Quality Management Journal article by Charles R. Emery, Timothy P. Summers, John G. Surak; Issues date, Jan. 8, 1996 ABSTRACT: Total Quality Management (TQM) provides a paradigm shift in management philosophy for improving organizational effectiveness. TQM focuses the efforts of all members of the organization to continuously improve all organizational processes and increase value to customers, while relying upon a clear vision of the organization's purpose. This depends on the removal of barriers both within the organization and between the organization and its various stakeholders. TQM has been embraced by thousands of organizations as an important, new approach to management. Despite its theoretical promise and the enthusiastic response to TQM, recent evidence suggests that attempts to implement it are often unsuccessful. Wyatt, the human resources consulting company, surveyed 531 companies that had undergone restructuring in 1992. Only 41% of the 361 companies that started TQM programs as a part of restructuring considered them to have been effective. Similarly, a study by McKinsey & Co. revealed that, of TQM programs in place for more than two years, as many as two-thirds are considered failures by the employees. 3-Problem Definition The problem definition for our research program is to evaluate the role of IT in total quality management. In this regard we select Metro’s IT department for conducting this research. We will try to know about the following reasons: • What is the effect of IT on total quality management (TQM)? • How does the lack of skilled and technical people effect the development of company. 4-Purpose The purpose of doing this research program is to see the effect of IT for on the TQM of any business organization.
  • 14. Research Type: In orde
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