Pakistan Tobacco Company Case Study

Improved Essays
Quality is the probably the most important point in the world market and efforts to improve quality eventually leads to enhanced market share and provides a competitive edge. Aiming for quality means analyzing products and processes to reduce production cost and improve customer satisfaction. The study and proper implementation of the basic statistical quality control (SQC) tools is important to achieve these goals. Effective implementation of SQC tools could enable an organization to improve its products and process to levels exceeding the expectations of all its stakeholders including the consumers.
While there is no doubt, in the minds of the quality leaders, abut the effectiveness of the SQC tools, the perception of the management and employees
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These two factors, especially employee’s ownership, is normally ignored and the blame of the resultant failure is invariably attributed to the SPC tools.
This paper is focused on the successful implementation and contribution of the
SQC tools to the total quality management implementation program of Pakistan
Tobacco Company. The main focus is on the impediments faced by the company and how it managed to overcome these.
Pakistan Tobacco Company:
Pakistan Tobacco Company (PTC) was incorporated in 1947 immediately after partition, when it took over the business of the Imperial Tobacco Company of India which had been operational in the subcontinent since 1905. We are part of the trans-national British American Tobacco Group (BAT), which employs some 85,000 people worldwide at its operations in 180 countries. BAT has a position of market leader in more than 50 countries selling over 300 brands. In
2005, the Group sold and produced a nearly 17% share of the global market of cigarettes. Pakistan Tobacco Company is the largest excise tax generator in the private sector in the country. In 2005 alone, Pakistan Tobacco Company paid the government close to Rs.20 Billion in excise and sales taxes. This amounts
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The program titled as “BEST 2000” (Building Excellence &
Success Together) was aimed on people involvement, process improvements and customer focus. Besides other initiatives like training the employees on the concepts of internal & external customers, team-work, Continuous improvement and Supplier collaboration, extensive use of the following techniques was the considered to be the main objective of the program.
1. Process mapping
2. Seven basic Statistical Quality control Techniques.
“BEST 2000” was completed successfully which was reflected in improvement in the companies business growth, however the ultimate destination was still far away although not out of sight.
The basic aim of the program was to change the organizational culture from the classic authoritative and shareholder-focused to a more participative and consumer-focused. This required a people to change their behaviors and do their jobs in a different way using different set of tools. To motivate such a large number of employees to adopt this paradigm shift was a huge task and could not be achieved through one program. The logical solution was reinforcement of

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