Customer Satisfaction in ACCEL Air control & Chemical engineering limited

PROJECT REPORT ON
CUSTOMER SATISFACTION LEVEL IN ACCEL

In partial fulfillment of

Bachelor of Business Administration

Submitted to: Submitted by:

Ms.Jyoti Agrawal Rinky Sharma
Lecturer- I.B.M. ENRL NO 2008CBA061

INSTITUTE OF BUSINESS MANAGEMENT

MANGALAYATAN UNIVERSITY

BESWAN, ALIGARH

I.B.M. 1 Rinky Sharma

Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

Certificate of Authenticity

To Whom It May Concern

This is to certify that Rinky Sharma (2008CBA061) is a Bonafide regular student of

MANGALAYATAN UNIVERSITY-BESWAN for the session 2009-10. He has

completed to summer training project report entitled Customer Satisfaction level

in the organization of ACCEL (Air control & chemical engineering limited) for the

partial fulfillment for the award of B.B.A.

The research report is satisfactory.

RINKY SHARMA

                              

I.B.M. 2 Rinky Sharma

Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

ACKNOWLEDGEMENT

Many lives and destinies are destroyed due to a lack of proper guidance, direction

and opportunity. It is in this respect I feel that I am in much better position today

due to continuous process of motivation and focus provided by my Parents and

Teachers in general. The process of completion of this project was a tedious job

and required careful guidance at all stages. I would like to highlight the role played

by many individuals towards this.

Firstly I am eternally grateful to Mr.RAVI GUPTA, SUPERVISOR of RELIGARE

SECURITIES Ltd. For providing me the opportunity and the infrastructure to

complete the project in the company.At last but not least I would like to thank my

dedicated and respected parents who were supported all the time and also to my

friends who gave me a constant support and suggestions for preparation of my

research report.

This project would not have been possible without the continuous guidance by

my Project In-Charge Mr. AMBRISH SHARMA sr.Lecturer IBM (MU). His

knowledge and know-how helped me overcome the various stages. And I would

like to thankful of my brother PUSHPENDRA PACHAURI and also my parents for

provide well guidance to me..

I.B.M. 3 Rinky Sharma
Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

PREFACE

This report aims at giving an insight to the project entitled “Air contrl & Chemical

engineering limited”. This project is prepared for the partial fulfillment of the

B.B.A.

The objective of this report is to provide a comparison between the different air

compressors and services provided by them to churn profits. This report contains

a detailed conversation between me and customers. In order to achieve this

objective I have analysed customers very well and have tried to extract their

feelings from their heart.

A glance at the contents reveals that the report is logically subdivided into no. of

topics. The first topic gives a brief introduction to the project. The second topic

covers the company profile regarding its products, services, etc.

The report also explains the process of how I did the project and what has been

the outcome of the project. I am confident that all contents will please most of

the readers

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

CONTENTS

CHAPTER 1

Introduction to organization

Introduction to topic

CHAPTER 2

Objectives

Research & Research Methodology

Scope of Study

Total Quality management

Inventory Control

Supply Chain Management

CHAPTER 3

SWOT

Analysis of data collected

CHAPTER 4

Findings

Conclusions & Suggestions

CHAPTER 5

APPENDIX

BIBLIOGRAPHY

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

INTRODUCTION TO ORGANIZATION

The Indian air control & chemical engineering industry has been on the
developing trend. During the past few years there has been and incredible
increase in the growth rate of the air control & chemical engineering in the Indian
subcontinent. There are many reasons for the growth of this industry.

One of the reasons for this growth could be that there is lot of competition
coming up in this industry. There are many foreign players, which have come into
this continent and have developed their manufacturing base here. The reasons
are

1. The Indian market is favorable for the growth of this industry. As there are
many people who are auto crazy in this country.
There are people who are willing to go out of their ways and try different
compressors. Some are so attracted to the air conditioners and fridges that
they are ready to pay any price to get their machine of choice.
2. Secondly that the raw materials available here are relatively cheap and
abundant. The basic requirement for this industry is the availability of the
various components, which are required to make a complete vehicle and of
course labor which is ready to work even at low wages.
All these conditions can be met in India. Thus India is now becoming the
favorite manufacturing center for all the foreign companies.
3. Thirdly the legal environment is very friendly in India. It allows foreign
companies and money to come in and invest so as to develop the Indian
economy. This is indeed fruitful as it not only brings in foreign capital but
I.B.M. 6 Rinky Sharma
Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

also brings in opportunities, by this I mean to say that chance for Indian
talent to go outside and Indian market to expand. For eg Indian companies,
which create opportunities for them to expand it branches in other
countries and expand, it’s base.

4. Moreover since the last few years there has been a lot of liberalization in
trade especially in the air compression industry. Government has removed
many legal restrictions so that components from foreign countries can
come in thus help in boosting up the Indian industry.

I.B.M. 7 Rinky Sharma

Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

ACCEL SMC & TSMC COMPRESSORS

ACCEL PACKAGED CHILLING UNITS

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

ACCEL PLATE / FLAKE ICE MACHINES

ACCEL INDUSTRIAL FANS & BLOWERS

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

ACCEL GRADED CASTINGS

ACCEL HVACR Systems

Air Control & Chemical Engineering Company Limited (ACCEL) was incorporated
in 1961 at P.O. Nandej, near Barejadi Railway Station District Ahmedabad 382435,

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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

Gujarat, India.

ACCEL is a Public Limited Company and subsidiary of Industrial Engineering

Corporation (IEC), Chennai based company and is the pioneer in HVACR field for
over four decades. ACCEL is now a leading name in Air Conditioning and
Refrigeration Compressors, Packaged Water Chillers, Industrial Fans & Blowers
and Graded Castings. Highly reliable, fit and forget technology, quality product
with value added design ensure long lasting and excellent performance.

ACCEL has separate manufacturing division under one roof i.e. Compressor
Division, Fan and Fabrication Division, Foundry equipped with machine shop and
allied facilities.

ACCEL is enriched with world class technologies from the world leaders in the
field of Air Conditioning & Refrigeration Equipments, Centrifugal Fans & Air
Handling Equipments and Castings.

ACCEL has a wide spread location of branch offices in India and a dealer network
for supply and service support of the equipment at various installations.

ACCEL products are widely used as under slung compressor for Railways Air
Conditioning, Naval and Marine applications, Cold Storage, Ice Plant, Central Air
Conditioning as well as in Fisheries, Food Processing, Wineries, Dairies and etc.

ACCEL fans are proven products and are well accepted by all industrial sectors.

ACCEL is certified ISO:9001:2000 by Benchmark.

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

  ACCEL
Packaged
Chilling Units
Preassembled
factory tested
Chillers,
Condensers,
Compressors
and Motors,
Fully Protected
by reliable
calibrated
safety devices,
all assembled
on a compact
rugged base
frame.
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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

Refrigerant   R 134(a), R 22, R 717, R 404(a)

   
Range   5 TR to 400 TR
   
Sizes   20 different Models
   
Models   PWC 5, 10, 15, 20, 25, 30, 40, 50, 60, 70, 80,
    100, 120, 150, 200, 225, 250, 300, 350, 400
   
Application   Central Air Conditioning, Marine Air Conditioning, Process
    Cooling in Chemical, Pharmaceutical, Textile Industries.
    Food Processing and Preservation, Beverages and Dairy.
   
Benefit   Chilled water centrally generated, Less duct work than all
    Air system, Greater energy efficiency, Better controllability.
  Minimum maintenance, Longer Life, Low Power
 
Consumption.

ACCEL Packaged Water / Brine Chilling unit Type PWC is designed as a completely
factory assembled unit including internal pipelines, electrical leads, etc. and is
delivered for ready installation. It requires only connection to power and water
pipes to be connected to the chiller and condenser. The standard units are fitted
with ACCEL SMC Compressors and are manufactured in 20 sizes.

SPECIFICATION – STANDARD UNITS

  The whole unit is mounted on a base plate made from CRCA

Base Frame
sheet with a tubular steel

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

    frame to support the condenser and chiller.

   
  SMC series open type reciprocating compressor having low
Compressor
power consumption,
    low maintenance cost and high reliability.
   
  Totally enclosed fan cooled type squirrel cage motor
Motor
suitable for 415V,  3 phase, and
  and 50Hz power supply. Special design motor can also be
  supplied as per client
  specification.
   
  Shell and tube type. Designed and fabricated as per ASTM
Condenser
codes & standards for better
  heat exchange, maximum reliability and safety. Condenser
 
shell of steel plate and is
    equipped with a safety valve.
   
  Shell and tube type with copper tubes and steel shell
Chiller
insulated with polyurethane and
  fully covered with aluminium plate. Thermo walls are
 
provided for water inlet and oulet
  temperature sensors. Both condenser and chiller are built
 
with a generous factor of
  safety to counteract tropical conditions and water quality
 
for longer service life.
   
  Designed and fabricated as per ASTM codes and standards.
Muffler
It arrests the pulsation of
    discharge gas due to reciprocating movement of the pistons

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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

and thereby reduces

    vibration of refrigerant piping.
   
  Designed and fabricated from heavy duty seamless pipe
Heat Exchanger
with counter flow arrangements
  between low temperature suction gas from chiller and high
 
temperature condenser
  liquid refrigerant to increase the co-efficient of
 
performance.
   
  It is provided in liquid line for easy assessment of moisture
Liquid indicator
and air in the system.
   
Filter cum Dryer   The liquid refrigerant is filtered and moisture is removed
Unit before it enters the expansion
  valve. A bypass line is also provided to clean/replace core
 
without stopping the plant
    operation.
   
  It expands the high pressure and high temperature liquid
Expansion Valve
refrigerant to design
  evaporating pressure and temperature. It also serves as a
 
control mechanism for the
  supply of liquid refrigerant to chiller by maintaining the
 
superheat of the out
    going gas.
   
Instrument Panel   Made from thick sheet plate, powder coated, easily
Board accessible. Instrument control
    panel is fitted with gauges, indicating lamps and fuses.
   
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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

Thermostat and   Gauges for chilled water inlet and outlet temperature.
Gauges Thermostat reacts to temperature
    changes and close / open on temperature rise or fall.
   
Control Panel   Made from thick sheet plate. It includes main circuit
(Optional) breaker, DOL / Star Delta Starter,
  power supply to crankcase heater and solenoid valves,
 
indicator lamps and toggle
    switches.
  Microprocessor based control panel can also be supplied on
 
request.

ACCEL being a service oriented organization has well organized service set up for
its products. Trained and skilled technicians are available throughout the country
and are within the reach of our clients. We have dealers and service agents
throughout India and Overseas to provide product support.

Regional Offices

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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

   Mumbai
   Delhi
   Kolkata
   Chennai

Branch Offices

   Agra
   Patna

City Office
 Ahmedabad

Factory
   Barejadi
     (Ahmedabad District)

Dealers/Agents
   Domestic & Overseas

GROWTH OF THE INDIAN AIR COMPRESSION INDUSTRY

Following India's growing openness, the arrival of new and existing models, easy
availability of finance at relatively low rate of interest and price discounts offered
by the dealers and manufacturers all have stirred the demand for air conditioners
and a strong growth of the Indian air control & chemical engineering industry.
I.B.M. 17 Rinky Sharma
Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

The data obtained from ministry of commerce and industry, shows high growth
obtained since 2001- 02 in air control & chemical engineering production
continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per
cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent the
air control & chemical engineering industry grew at a compound annual growth
rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding
Rs. 50,000 crore, the turnover of the air control & chemical engineering industry
exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in
2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in
2003-04.

Air control & chemical engineering Export Numbers

Category 1998-99 2004-05 (Apr-Dec)

AIR CYLENDERS 25468 121478

COOLANTS 2654 3892

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

REFRIGERANTS 10108 19931

AIR CONDITIONERS 100002 256765

COMPRESSIORS 21138 51535

Percentage Growth -16.6 32.8

The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 1998- 99 and
1999-00, such exports registered robust growth rates of well over 50 per cent in
2002-03 and 2003-04 each to exceed two and- a-half times the export figure for
2001-02.

CHAPTER 2

OBJECTIVE

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

To study the various operation techniques followed by leading air compreesing

manufacturing industries in India. Also, a comparative study on the supply chain
effectiveness of these selected Indian air compreesor-manufacturing companies.

Today every organization is facing a fierce competition in the market, because of

short product cycle, rapidly changing technology and economic conditions.
Virtually each major air compreesor company in the country is trying to make its
presence felt in the new net-centric economy. The dealers are also focusing on
getting to know their customer better, some on making their supply chain neat
and transparent and some on creating electronic presence. Also trying to figure
out new ways of increasing the organization operations effectiveness so as to get
and edge over the competitors in the market. This can be obtained from
information sharing, cooperation, risk and reward sharing among supply chain
partners. In this scenario only those organizations can survive who can compete
on the basis of cost and quality. All these can be explained with effective
operations technique and supply chain management. Also there are various tools,
which are adopted by the air compreesor manufacturing companies nowadays,
which enable them to reduce their cost and enhance their productivity along with
increasing the revenues. These tools are really effective as they are adopted by
most of the air compreesor manufacturing industries.

I.B.M. 20 Rinky Sharma

Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

RESEARCH METHODOLOGY

RESEARCH DESIGN

The objective of the project is to find out the best mode of operations and supply
chain management that can be carried out by an air compreesor company to get
the most effective product outline with the minimum of cost input. Also to study
the various forms of operation techniques that are implemented in and air
compreesor industry. This project will contain the comparison of the operations
of 3 companies. One of them is Toyota Motors whose operations and supply chain
management will be compared with that of two local auto giants Tata and Honda
which have their base in Delhi. Thus, arriving the most effective operation and
production line with the best supply chain.

SAMPLE DESIGN

For the best results the project contains the comparison of the operations of
three companies who have established a strong market presence for their
products in this sector. They have created a brand name for themselves and the
customers are willing to pay any price to attain this brand. They have established
themselves in the market for a long time. The three companies are

1. Tata Motors
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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

2. Toyota Motors
3. Honda Siel Cars

The basis of taking these companies is that two of the companies have been the
leading producers of air compreesors in India for a long time. The third is a
company, which has acquired a brand name for itself worldwide. So the operation
strategy, which this company follows, is different from that of the other two
companies, thus, it will be a good basis of comparison and could be implemented
for the Indian companies too.

SCOPE OF STUDY

The study as mentioned earlier is limited to three companies. The study focuses
on conducting a research on the various operations tools that are implemented
by the air compreesor manufacturing companies so as to get the best output with
the minimum cost input, thus, increasing the revenues and also capturing the
most of the market share for the company so that they get a leading edge over
the others. Also, finding out the best supply chain management all of which could
be implemented by Tata motors so as to increase the market share for their
vehicles.

The study attempts to answer the best strategies for operations that the air
compreesor manufacturing companies can have if they plan to setup a base in
India, also the ways of enhancing their productiveness. This study also answers
why the leading auto giants have attained the position in which they are today

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

and thus what steps could be adopted by those companies which are new in this
field or are planning to diversify their mode of operations to manufacturing cars.

TOTAL QUALITY MANAGEMENT

WHAT IS TOTAL QUALITY MANAGEMENT?

In many air compreesor companies the way to ensure that customers receive
quality products and services is to have a rigorous system of inspection.. The idea
is that if there is enough inspection then the defective products will be identified
and discarded leaving only the good products to be made available to the
customers. In this approach the main the main decision is to find out how many
goods will have to be inspected., the cost of scrap, rework, and detecting defects
increase while the cost of defective products to customers decline. At some level
of inspection and optimal trade off is achieved where total quality costs are
minimized. Operations manager are somehow supposed to manage these costs.
Now the fault in here lies in the view that it implies quality can be inspected into
products. In other words acceptable product quality can be achieved by
discarding defective products that are found in inspection. while continuing to
produce shoddy products with sloppy production practices.

The scenario now has changed. Quality managers now know that superior quality
products are not attained only through high and rigorous inspection.
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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

It is that manufacturers must go back to production and make fundamental

changes in the way that they design their products and produce it right the first
time. That way superior quality products will be coming out of production and
inspection job shifts from discarding bad products to preventing defects and
providing feedbacks and how production can continue to improve quality. This is
called the Total quality management. Many companies have now abandoned the
traditional approach and have gone into TQM.

WHY UNDERSTAND A SIMPLIFIED TQM DIAGNOSTIC MODEL?

This model can help you gain confidence in making TQM decisions:

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

 Identify necessary elements for a successful quality management approach.

 Know how they fit together to successfully accomplish quality goals.
 Display the most options, thus helping make the right quality management
choices.
This model can help you integrate daily TQM tasks with strategic TQM goals:

 Learn skills to balance competitive quality strategic planning with daily

operational choices.
 Learn skills to maximize human and organizational resources for daily
productivity demands.
This model can help you understand and enjoy team technology in the context of
TQM:

 Learn how to avoid strategies that lead to the "program-of-the-month"

mentality.
 Learn how to keep management commitment for TQM at its highest level.
 Learn how to avoid employee "end-runs" around management during TQM
implementation.

THE GUIDING PRINCIPLE

 Successful Total Quality Management requires both behavioral and cultural

change.
 A successful TQM System brings two other management systems together
with a behavioral and cultural commitment to customer quality.
 Thus, TQM becomes a system within itself by default or by choice.

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

 These three management systems must be aligned in a successful TQM

initiative:
o OM (organizational management system),
o HRM (human resource management systems) and
o TQM (total quality management).

TWO IMPLEMENTATION APPROACHES

 TRADITIONAL MANAGEMENT APPROACH: This is the most common. A TQM

is overlayed (some say forced) upon the other two systems. This approach
represents the 80% failure of TQM's. In this approach TQM never becomes
an accepted reality by either organizational or human resource
management. It is usually seen as competition, or "something to be
tolerated." The TQM system consumes valuable resources needed by the
other systems and rejection begins to occur.
 INTEGRATED MANAGEMENT APPROACH: This is the least common. A TQM
is blended and balanced with existing cultural initiatives in both
organizational and human resource management systems. This represents
the 20% success rate of TQM's. Whether both organizational management
and human resource management systems take on a "quality management
commitment" or "join a quality management team" is not important. The
principles of quality management are attended to as an important third
system that blends, integrates, aligns and maximizes the other two systems

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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

to beat competition in world class quality performance. This approach can

often be divided into two sub-choices, depending upon managerial
resources, readiness, acceptance, and competencies. .

THE NEED FOR THREE INTEGRATED and SIMPLIFIED MODELS

 Managers committed to successful implementation of total quality

management (TQM) must have both an HRD Model and an OD Model that
work together.
 In simplified terms, HRD + OD = TQM. Even though a TQM is an entity
within itself, it must see its existance as the catalytic blending of the other
two systems. It does not consume the other systems, it empowers them to
do what they have wanted to do - attain world class customer quality!
 This can be tricky politically, and is the reason for this Simplified TQM
Diagnostic Model. You may access simplified HRD and OD models by
clicking on the HRD and OD acrostics.

A SIMPLIFIED TQM MODEL

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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

While Total Quality Management has proven to be an effective process for

improving organizational functioning, its value can only be assured through a
comprehensive and wellthoughtout implementation process. The purpose of this
chapter is to outline key aspects of implementation of largescale organizational
change which may enable a practitioner to more thoughtfully and successfully
implement TQM. First, the context will be set. TQM is, in fact, a largescale
systems change, and guiding principles and considerations regarding this scale of
change will be presented. Without attention to contextual factors, wellintended
changes may not be adequately designed. As another aspect of context, the
expectations and perceptions of employees (workers and managers) will be
assessed, so that the implementation plan can address them. Specifically, sources
of resistance to change and ways of dealing with them will be discussed. This is
important to allow a change agent to anticipate resistances and design for them,
so that the process does not bog down or stall. Next, a model of implementation
will be presented, including a discussion of key principles. Visionary leadership
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Mangalayatan University 2008CBA061
Customer Satisfaction in ACCEL Air control & Chemical engineering limited

will be offered as an overriding perspective for someone instituting TQM. In

recent years the literature on change management and leadership has grown
steadily, and applications based on research findings will be more likely to
succeed. Use of tested principles will also enable the change agent to avoid
reinventing the proverbial wheel. Implementation principles will be followed by a
review of steps in managing the transition to the new system and ways of helping
institutionalize the process as part of the organization's culture. This section, too,
will be informed by current writing in transition management and
institutionalization of change. Finally, some miscellaneous do's and don't's will be
offered.

Members of any organization have stories to tell of the introduction of new

programs, techniques, systems, or even, in current terminology, paradigms.
Usually the employee, who can be anywhere from the line worker to the
executive level, describes such an incident with a combination of cynicism and
disappointment: some manager went to a conference or in some other way got a
"great idea" (or did it based on threat or desperation such as an urgent need to
cut costs) and came back to work to enthusiastically present it, usually mandating
its implementation. The "program" probably raised people's expectations that
this time things would improve, that management would listen to their ideas.
Such a program usually is introduced with fanfare, plans are made, and things
slowly return to normal. The manager blames unresponsive employees, line
workers blame executives interested only in looking good, and all complain about
the resistant middle managers. Unfortunately, the program itself is usually seen
as worthless: "we tried team building (or organization development or quality
circles or what have you) and it didn't work; neither will TQM". Planned change

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Customer Satisfaction in ACCEL Air control & Chemical engineering limited

processes often work, if conceptualized and implemented properly; but,

unfortunately, every organization is different, and the processes are often
adopted "off the shelf" "the 'appliance model of organizational change': buy a
complete program, like a 'quality circle package,' from a dealer, plug it in, and
hope that it runs by itself" (Kanter, 1983, 249). Alternatively, especially in the
underfunded public and notforprofit sectors, partial applications are tried, and in
spite of management and employee commitment do not bear fruit. This chapter
will focus on ways of preventing some of these disappointments.

In summary, the purpose here is to review principles of effective planned change

implementation and suggest specific TQM applications. Several assumptions are
proposed: 1. TQM is a viable and effective planned change method, when
properly installed; 2. not all organizations are appropriate or ready for TQM; 3.
preconditions (appropriateness, readiness) for successful TQM can sometimes be
created; and 4. leadership commitment to a largescale, longterm, cultural change
is necessary. While problems in adapting TQM in government and social service
organizations have been identified, TQM can be useful in such organizations if
properly modified (Milakovich, 1991; Swiss, 1992).

TQM as Large Sale Systems Change

TQM is at first glance seen primarily as a change in an organization's technology

its way of doing work. In the human services, this means the way clients are

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processed the service delivery methods applied to them and ancillary

organizational processes such as paperwork, procurement processes, and other
procedures. But TQM is also a change in an organization's culture its norms,
values, and belief systems about how organizations function.

And finally, it is a change in an organization's political system: decision making

processes and power bases. For substantive change to occur, changes in these
three dimensions must be aligned: TQM as a technological change will not be
successful unless cultural and political dimensions are attended to as well (Tichey,
1983).

Many (e.g., Hyde, 1992; Chaudron, 1992) have noted that TQM results in a radical
change in the culture and the way of work in an organization. A fundamental
factor is leadership, including philosophy, style, and behavior. These must be
congruent as they are presented by a leader. Many socalled enlightened leaders
of today espouse a participative style which is not, in fact, practiced to any
appreciable degree.

Any manager serious about embarking on a culture change such as TQM should
reflect seriously on how she or he feels and behaves regarding these factors. For
many managers, a personal program of leadership development (e.g., Bennis,
1989) may be a prerequisite to effective functioning as an internal change agent
advocating TQM.

Other key considerations have to do with alignment among various organizational

systems (Chaudron, 1992; Hyde, 1992). For example, human resource systems,
including job design, selection processes, compensation and rewards,
performance appraisal, and training and development must align with and
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support the new TQM culture. Less obvious but no less important will be changes
required in other systems.

Information systems will need to be redesigned to measure and track new things
such as service quality. Financial management processes may also need attention
through the realignment of budgeting and resource allocation systems.
Organizational structure and design will be different under TQM: layers of
management may be reduced and organizational roles will certainly change.

In particular, middle management and first line supervisors will be operating in

new ways. Instead of acting as monitors, ordergivers, and agents of control they
will serve as boundary managers, coordinators, and leaders who assist line
workers in getting their jobs done. To deal with fears of layoffs, all employees
should be assured that no one will lose employment as a result of TQM changes:
jobs may change, perhaps radically, but no one will be laid off. Hyde (1992) has
recommended that we "disperse and transform, not replace, midlevel managers."
This no layoff principle has been a common one in joint labormanagement change
processes such as quality of working life projects for many years.

Another systems consideration is that TQM should evolve from the organization's
strategic plan and be based on stakeholder expectations. This type of planning
and stance regarding environmental relations is receiving more attention but still
is not common in the human services. As will be discussed below, TQM is often
proposed based on environmental conditions such as the need to cut costs or
demands for increased responsiveness to stakeholders. A manager may also
adopt TQM as a way of being seen at the proverbial cutting edge, because it is
currently popular.

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This is not a good motivation to use TQM and will be likely to lead to a cosmetic
or superficial application, resulting in failure and disappointment. TQM should be
purposeoriented: it should be used because an organization's leaders feel a need
to make the organization more effective. It should be driven by results and not be
seen as an end in itself.

If TQM is introduced without consideration of real organizational needs and

conditions, it will be met by skepticism on the part of both managers and workers.
We will now move to a discussion of the ways in which people may react to TQM.

People's Expectations and Perceptions

Many employees may see TQM as a fad, remembering past "fads" such as quality
circles, management by objectives, and zerobased budgeting. As was noted
above, TQM must be used not just as a fad or new program, but must be related
to key organizational problems, needs, and outcomes. Fortunately, Martin (1993)
has noted that TQM as a "managerial wave" has more in common with social
work than have some past ones such as MBO or ZBB, and its adaptations may
therefore be easier.

In another vein, workers may see management as only concerned about the
product, not staff needs. Management initiatives focused on concerns such as
budget or cost will not resonate with beleaguered line workers. Furthermore,
staff may see quality as not needing attention: they may believe that their
services are already excellent or that quality is a peripheral concern in these days

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of cutbacks and multi problem clients. For a child protective service worker, just
getting through the day and perhaps mitigating the most severe cases of abuse
may be all that one expects. Partly because of heavy service demands, and partly
because of professional training of human service workers, which places heavy
value on direct service activities with clients, there may be a lack of interest on
the part of many line workers in efficiency or even effectiveness and outcomes
(Pruger & Miller, 1991; Ezell, Menefee, & Patti, 1989). This challenge should be
addressed by all administrators (Rapp & Poertner, 1992), and in particular any
interested in TQM.

Workers may have needs and concerns, such as lower caseloads and less
bureaucracy, which are different from those of administration. For TQM to work,
employees must see a need (e.g., for improved quality from their perspective)
and how TQM may help. Fortunately, there are winwin ways to present this. TQM
is focused on quality, presumably a concern of both management and workers,
and methods improvements should eliminate wasteful bureaucratic activities,
save money, and make more human resources available for core activities,
specifically client service.

Sources of Resistance

Implementation of largescale change such as TQM will inevitably face resistance,

which should be addressed directly by change agents. A key element of TQM is

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working with customers, and the notion of soliciting feedback/expectations from

customers/clients and collaborating with them, perhaps with customers defining
quality, is a radical one in many agencies, particularly those serving involuntary
clients (e.g., protective services). Historical worker antipathy to the use of
statistics and data in the human services may carry over into views of TQM, which
encourages the gathering and analysis of data on service quality. At another level,
management resistance to employee empowerment is likely. They may see
decision making authority in zerosum terms: if employees have more involvement
in decision making, managers will have less. In fact, one principle in employee
involvement is that each level will be more empowered, and managers lose none
of their fundamental authority. There will undoubtedly be changes in their roles,
however. As was noted above, they will spend less time on control and more on
facilitation. For many traditional managers, this transition will require
teaching/training, self reflection, and time as well as assurances from upper
management that they are not in danger of being displaced.

Resistance in other parts of the organization will show up if TQM is introduced on

a pilot basis or only in particular programs (Hyde, 1992). Kanter (1983) has
referred to this perspective as segmentalism: each unit or program sees itself as
separate and unique, with nothing to learn from others and no need to
collaborate with them. This shows up in the "not invented here" syndrome: those
not involved in the initial development of an idea feel no ownership for it. On a
broader level, there may be employee resistance to industry examples used in
TQM terms like inventory or order backlog (Cohen and Brand, 1993, 122).

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Dealing with Resistance

There are several tactics which can be helpful in dealing with resistance to TQM
implementation. Generally, they have to do with acknowledging legitimate
resistance and changing tactics based on it, using effective leadership to enroll
people in the vision of TQM, and using employee participation.

A useful technique to systematically identify areas of resistance is a force field

analysis (Brager & Holloway, 1992). This technique was originally developed by
Kurt Lewin as an assessment tool for organizational change. It involves creating a
force field of driving forces, which aid the change or make it more likely to occur,
and restraining forces, which are points of resistance or things getting in the way
of change. Start by identifying the change goal, in this case, implementation of
TQM. Represent this by drawing a line down the middle of a piece of paper.
Slightly to its left, draw a parallel line which represents the current state of the
organization. The change process involves moving from the current state to the
ideal future state, an organization effectively using TQM. To the left of the second
line (the current state), list all forces (individuals, key groups, or conditions),
which may assist in the implementation of TQM. These may include
environmental pressures leading to reduced funds, staff who may like to be more
involved in agency decision making, and the successful applications of TQM
elsewhere. On the other side, list restraining forces, which will make the change
implementation more difficult. Examples may be middle management fear of loss
of control, lack of time for line workers to take for TQM meetings, and skepticism

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based on the organization's poor track record regarding change. Arrows from
both sides touching the "current state" line represent the constellation of forces.
Each force is then assessed in two ways: its potency or strength, and its
amenability to change. More potent forces, especially restraining ones, will need
greater attention. Those not amenable to change will have to be counteracted by
driving forces. Exhibit I provides an example.

Force Field Analysis

DRIVING FORCES RESTRAINING FORCES

Environmental pressures leading to Middle management fear of loss of

reduced funds control

Staff who may like to be more Lack of time for line workers to take time
involved in agency decision making for TQM meetings

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Successful applications of TQM Skepticism based on the organization's

elsewhere poor performance regarding change

The analysis of the force field involves looking at which driving forces may be
strengthened and which restraining forces may be eliminated, mitigated, or
counteracted. If it appears that, overall, driving forces are strong enough to move
back restraining forces, adoption of TQM would be worth pursuing. The change
plan would include tactics designed to move the relevant forces.

It is also important to note and validate any points of resistance which are, in fact,
legitimate, such as the limited amount of staff time available for TQM meetings.
Klein (cited in Bennis, Benne, & Chin, 1985) encouraged change agents to validate
the role of the "defender" of the status quo and respond to legitimate concerns
raised. This will allow appropriate adaptations of the TQM process to account for
unique organizational circumstances. Sell TQM based on the organization's real
needs, note legitimate risks and negatives, and allow improvements in your own
procedures. This should enhance your credibility and show your openness to
critically looking at the process.

Another way to address resistance is to get all employees on the same side, in
alignment towards the same goal. Leadership is the mechanism for this, and
specific models known as transformational or visionary leadership (Bennis &
Nanus, 1985) are most effective. Research on change implementation (Nutt, cited
in Robey, 1991) has identified four methods.

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The first, "intervention," involves a key executive justifying the need for change,
monitoring the process, defining acceptable performance, and demonstrating
how improvements can be made. This was found to be more successful than
"participation," in which representatives of different interest groups determine
the features of the change. Participation was found to be more successful than
"persuasion" (experts attempting to sell changes they have devised) or "edict,"
the least successful. Transformational or visionary leadership, the approach
suggested here, is an example of the intervention approach. This would involve a
leader articulating a compelling vision of an ideal organization and how TQM
would help the vision be actualized. These principles will be discussed in more
detail in a later section, as a framework for the change strategy.

A powerful way to decrease resistance to change is to increase the participation

of employees in making decisions about various aspects of the process. There are
actually two rationales for employee participation (Packard, 1989). The more
common reason is to increase employee commitment to the resultant outcomes,
as they will feel a greater stake or sense of ownership in what is decided. A
second rationale is that employees have a great deal of knowledge and skill
relevant to the issue at hand (in this case, increasing quality, identifying problems,
and improving work processes), and their input should lead to higher quality
decisions. A manager should consider any decision area as a possibility for
employee participation, with the understanding that participation is not always
appropriate (Vroom and Yetton, 1973). Employees or their representatives may
be involved in decision areas ranging from the scope and overall approach of the
TQM process to teams engaging in quality analysis and suggestions for
improvements. They may also be involved in ancillary areas such as redesign of

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the organization's structure, information system, or reward system. Involvement

of formal employee groups such as unions is a special consideration which may
also greatly aid TQM implementation.

A change agent should understand that, overall, change will occur when three
factors (dissatisfaction with the status quo, desirability of the proposed change,
the practicality of the change) added together are greater than the "cost" of
changing (time spent in learning, adapting new roles and procedures, etc.)
(Beckhard and Harris, 1987). This is represented in the formula in Exhibit II. Any
key group or individual will need a level of dissatisfaction with the status quo,
must see a desired improved state, and must believe that the change will have
minimal disruption. In other words, the change (TQM) must be seen as
responding to real problems and worth the effort or cost in getting there.
Conditions favoring change may be created by modifying these variables. The
change agent may try to demonstrate how bad things are, or amplify others'
feelings of dissatisfaction; and then present a picture of how TQM could solve
current problems. The final step of modifying the equation is to convince people
that the change process, while it will take time and effort, will not be prohibitively
onerous. The organization as a whole and each person will be judging the
prospect of TQM from this perspective. A variation of this is the WIIFM principle:
"What's in it for me?" To embrace TQM, individuals must be shown how it will be
worth it for them.

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INVENTORY CONTROL

Inventory control is concerned with minimizing the total cost of inventory. In the
U.K. the term often used is stock control. The three main factors in inventory
control decision making process are:

The cost of holding the stock (e.g., based on the interest rate).

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The cost of placing an order (e.g., for raw material stocks) or the set-up cost of
production.

The cost of shortage, i.e., what is lost if the stock is insufficient to meet all
demand.

The third element is the most difficult to measure and is often handled by
establishing a "service level" policy, e. g, certain percentage of demand will be
met from stock without delay.

The ABC Classification The ABC classification system is to grouping items

according to annual sales volume, in an attempt to identify the small number of
items that will account for most of the sales volume and that are the most
important ones to control for effective inventory management.

Reorder Point: The inventory level R in which an order is placed where R = D.L, D
= demand rate (demand rate period (day, week, etc), and L = lead time.

Safety Stock: Remaining inventory between the times that an order is placed and
when new stock is received. If there are not enough inventories then a shortage
may occur.

Safety stock is a hedge against running out of inventory. It is an extra inventory to

take care on unexpected events. It is often called buffer stock. The absence of
inventory is called a shortage.

Quantity Discount Model Calculation Steps:

Compute EOQ for each quantity discount price.

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Is computed EOQ in the discount range?

If not, use lowest cost quantity in the discount range.

Compute Total Cost for EOQ or lowest cost quantity in discount range.

Select quantity with the lowest Total Cost, including the cost of the items
purchased.

Inorder to simplify the process of inventory control there is a software made

which will not only quicked the process of inventory control but will also help in
doing the whole process accurately. This software is called Hi – tech software and
it is being used ow by most air compreesor industry.

HiTech Air compreesors Sales, Stock and Accounts Management Program is a very
powerful tool for Invoicing, Inventory Control, Sales and Purchase Control and
Accounting. The program has got powerful features to take care of all
requirements of a Air compreesors Trading and Business House and serves as a
complete Management Information system (MIS). The design of Hi-tech Air
compreesors SSAM (Sales, Stock and Accounts Manager) is modular. The data
from various modules flows in Accounts module and all your final rep orts are
produced at a touch of a button.

The program has above listed modules :

This modular program keeps detailed information about the Supplier, customer
and accounts you deal with. Apart from the preparing and printing the vouchers
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HiTech F inancial Accounting keeps your accounts up-to-date without any effort.
Numerous reports are available for viewing and printing where you can keep an
eye on the vital indicators about your business.

Being Window based HiTech Financial Accounting is in tune with the latest
computer software technology and will be a long time companion to your
profitable business.

The design of HiTech Air compreesor SSAM is modular. The data from various
modules flows in Accounts module and all your final reports are produced at a
touch of a button. The program has above listed modules.

This application program is designed for use on Windows

98/2000/2003/ME/NT/XP. This program has much improved functionality and
more power under Windows (TM). It is equipped with context sensitive On Line
help to make the whole operation easy for a new user.

The program uses Microsoft Access databases powered by Microsoft Jet Database
Engine for fast and efficient storage and retrieval of Data. Multitasking (Carrying
out two tasks at a time; i.e. printing reports or vouchers is simultaneously possible
while viewing the reports or making new vouchers. The program uses

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spreadsheet to display all your data on the screen at the same time for easy
readability.

The program includes built in tools like Information Export Panel Information
Export Panel that allows you to export all reports from to program to Printer with
print preview, email, MS Excel, MS Word, CSV Text and also upload to web using
FTP. All reports can be displayed in grid as well as in list view (sort-able) format.
Another tool included with the program is Communication Control that is linked
to party (customer, supplier, employee etc.) records. You can write a
communication using word, excel o r notepad or send an email to a party. The
communication is linked with the party record and can be re-accessed again. Also
telephone numbers can be dialed by click of a button using the computer
modem.The a program has an OCX user interface that make data entry effortless
and editing of all records is possible with ledger and inventory being updated
automatically. A number of reports are displayed with graphs. All reports can be
exported in various format as described above.

Place your choice today in HiTech Financial Accounting Software and make your
Business Accounting easy to handle. HiTech Financial Accounting shall be reliable
companion of your successful business with years of bother free operation.

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SUPPLY CHAIN MANAGEMENT

INTRODUCTION

Consider how a material might flow from a companies supplier through the
companies operation, and the to it’s customers. An increasingly popular
perspective today is to view the flow of materials from suppliers all the way to the
consumers as a system to be managed. This perspective is commonly referred to
as supply chain management.

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In the broader sense it refers to the way that materials flow through different
organizations; Starting with basic raw materials and ending up with products
delivered to the ultimate consumer. Eg consider the steel used in air compreesor
bodies, mining company first only the iron ore from the dirt. The iron ore is then
sent to a steel mill, where it is processed with other materials to form large steel
ingots. These are again sold to another steel companies, where they are heated
rolled into long thin sheets and annealed. These rolls are then sent to automotive
manufacturers that are either specialized in making doors, and inner and outer
body parts of the compressors. The air compreesor is then sold to some
compressor dealership that performs some final preparation work, such as adding
pinstrips to the sides etc. finally the ultimate consumer purchases the vehicle or
compressor from the dealer who is the last link in the supply chain.

Supply chain can form complex networks involving many companies and
materials. A raw material can be used in many different finished products
produced by numerous companies. Co-ordination of all companies involved in the
supply chain, including effective communication is crucial in providing high quality
finished products in a timely manner and at the lowest cost possible for the
company. From an operations management perspective for a particular company
that is in middle of a supply chain, only a portion of supply chain is of particular
interest. So for most of the companies the most relevant aspect of SCM involve
all management functions related to the flow of materials from the companies
direct suppliers to its direct customers; including purchasing, warehousing,
inspection, production, materials handling, shipping and distribution.Materials

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management and logistics management are two alternative names sometimes

used to refer SCM within a single company.

CHAPTER 3

SWOT ANALYSIS OF THE INDIAN COMPRESSOR INDUSTRY

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The term SWOT analysis is used for knowing the strengths, weakness,
opportunities and threats of the organization.
And hence the SWOT of ACCEL is shown below-

STRENGTHS

1. COST EFFECTIVENESS IN TERMS OF LABOUR AND RAW MATERIALS

2. ESTABLISHED MANUFACTURING BASE
3. ECONOMIES OF SCALE DUE TO DOMESTIC MARKET
4. POTENTIAL TO HARNESS THE GLOAL BRAND IMAGE OF THE DOMESTIC
MANUFACTURRS
5. GLOBAL HUB POLICY FOR SMALL AIR CONDITIONERS.
6. CUSTOMERS WITH VARIED TASTE AND READINESS TO EXPERIMENT

WEAKNESSES

1. PERCEPTION ABOUT QUALITY AND QUALITY CONTRO MEASURES

2. INFRASTRUCTURE BOTTLENECKS
3. VERY HARD TO CHANGE THE PERCEPTION OF THE PEOPLE ONCE SET

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OPPORTUNITIES

1. HUGE MARKET POTENTIAL OF THE INDIAN CARS IN OTHER MARKETS

(EUROPE, AMERICA, AFRICA)
2. MORE AVAILABLITY OF CHOICES IF MORE FOREIGN PLAYERS COME INTO
THE INDIAN SUBCONTINENT
3. POTENTIAL TO INCRESE MORE MARKET BASE FOR INDIVIDUAL PLAYERS IN
THE AUTO MARKET
4. INCREASE IN TH AUTO COMPONENTS INDUSTRY IF MORE PARTICIPATION IS
MADE AVAILIBLE.

THREATS

1. OTHER COMPETITIVE MARKETS LIKE CHINA, MALAYSIA WHCI CAN MAKE

VEHICLES AND COMPRESSORS FOR CHEAPER PRICES AND THUS PENETRATE
THE INDIAN MARKET AND CREATE HUGE OPPORTUNITIES FOR
THEMSELVES.

CHAPTER 4

FINDINGS

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I have studied the various operation techniques used in accel industry to

manufacture world class compressors followed by leading air compressing
manufacturing industries in India.

Also, a comparative study on the supply chain effectiveness of these selected

Indian Air -manufacturing companies.

I have understood the manufacturing process and enjoyed the experience to work
in idustries.

BIBLIOGRAPHY

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http://www.accelindia.com/
www.wikipedia.com
Old records of the company
Annual report
Suppliers and customers list

CONCLUSIONS & SUGGESTIONS

To conclude I may say that the scope of Air control & Chemical engineering
limited company is great.
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I have analysed that there is slight problem with management and have gain
knowledge about the consumers.

ANNEXURE

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