Mcbbank 130507161938 Phpapp02

Bahria University Islamabad
Department Of Management Sciences
Final Project Report
Muslim Commercial bank
Submitted to:
Prof col Manzoor Iqbal Awan
Group members
Saad Saleem
Aftab Nawaz
Muhammad Ali Farooquui
Arooj Tariq
Enrolment number
01-120121-067
01-120121-004
01-12012101-120121-009
Total Quality Management
Teacher remark:
Group leader: SAAD SALEEM
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Table of Content
ACKNOWLEDGMENT: .............................................................................................................................. 8
METHODOLOGY:....................................................................................................................................... 9
EXECUTIVE SUMMARY ......................................................................................................................... 10
INTRODUCTION: ..................................................................................................................................... 12
MISSION STATEMENT:........................................................................... Error! Bookmark not defined.
VISION STATEMENT: ............................................................................................................................. 12
PRODUCT AND SERVICES OF MCB:.................................................................................................... 13
VALUES OF MCB BANK ......................................................................................................................... 15
CODE OF ETHICS: .................................................................................................................................... 16
LEADERSHIP OF MCB: ........................................................................................................................... 17
STRUCTURE/HIERARCHY OF MCB .................................................................................................... 19
DEVELOPMENT MEASURES: ................................................................................................................ 19
HUMAN RESOURCE MANAGEMENT GROUP HIERARCHY: .......................................................... 20
ROLE PLAY BY SENIOR MANAGERS: ................................................................................................ 21
PROCESS OF CHANGE IN MCB:............................................................................................................ 21
PERFORMANCE MEASUREMENT: ....................................................................................................... 26
OBSTACLES OF TQM: ............................................................................................................................. 27
JURAN TRIOLOGY: ................................................................................................................................. 28
CUSTOMERS OF MCB: ............................................................................................................................ 29
TYPES OF CUSTOMERS: ........................................................................................................................ 30
SUPPLIERS OF MCB: ............................................................................................................................... 31
QUALITY MANAGEMENT: .................................................................................................................... 31
USE OF FISHBONE DIAGRAM: ............................................................................................................. 31
CONCLUSION: .......................................................................................................................................... 34
RECOMMENDATIONS: ........................................................................................................................... 35
REFERENCES:........................................................................................................................................... 36
QUESTIONNAIRE: ................................................................................................................................... 37
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ACKNOWLEDGMENT
Any accomplishment requires the effort of many people and there are no exceptions. The report
being submitted today is a result of collective effort.
First and foremost we are thankful to our professor who gave us the opportunity to work on this
project and learn the practical implementation of quality control in successful organizations. Our
professor who not only taught us the subject of Total Quality Management but also proved us that
by continues effort and proper research one can invent new methods not only in quality but in every
field of life. His efforts and remarkable achievements are known all over the globe Prof col
Manzoor Iqbal Awan.
Secondly, we thank Mr. Zubair Imran, quality Manager Quality Control who helped us in the
project. He took his precious time and briefed us about the processes and quality control system.
His cooperation regarding question answering and visit to the site was admirable.
Lastly, we would like to thank our friends who helped us out in different stages of difficulty.
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Methodology:
We have a total quality management project on Muslim Commercial Bank to complete
the project report we need enough information about quality and improvement process, which the
bank is doing for the quality.
At first, we all members decide to make a direct interview with the quality department
head and one day we went the head office of Muslim Commercial Bank situated at blue area and
meet quality manager name Mr. Zubair Imran and tell about us, than ask to give us information
about the quality but he refuse to share the information with us and said that first you should send
me the questions I will see them and if I can answer than I will call u to come and I will give you
information, than we send a questionnaire and after five days he call us and give us the answers of
the questions and we get information which was enough to complete our project.
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Executive Summary
In this project, we have almost discussed each part of the MCBs quality management with
its customers. We discussed that how MCB made it easier for their customer to use their ATM
machines and also the cards which are easily specified with the customers perceived decisions
whether they will have the transactions directly or indirectly and these ATM machines which are
almost available in every corner in the main cities and as well as the rural areas of Pakistan. Then
there is the travelers check and the gold card, which is used by the loyal customers who has the
membership of MCB. We also discussed the banks features of RTC, which they use. It includes
online banking, mobile banking and then there is the call centre which the customers of MCB can
be facilitated with. This report tells that how MCB bank uses its values to improve the quality of its
management and these are innovation, integrity, excellence and customer centricity these values are
noted and judged by the customer focus on the MCB qualities. Then our group discussed and
reached the MCBs hierarchy or structure, which tells us how the hierarchy of MCB is created, first
there group head who leads the other first level groups, then there are the three business head north,
south and centre that are typically known as the mangers of the MCB bank. After that there is the
financial services departments who holds all the financial transactions of the MCB banking system
and last but not the least there is the branch manager who tells the first level employees what to do.
Then there is the HRM group, which has which takes responsibilities of the MCB customer care in
doing so there is a HRM hierarchy, which is the same as the normal hierarchy, but has different
perspectives. Then there is a process of cultural change in the MCB, which allows the internal
customers to experience the changes in technologies there, is also a training program for the internal
customers, which has been already discussed, the motivation of employees is there to get the output
better of the bank. Benefits for employees are available when they have entered the organization.
Compensation is given to the employees of MCB, and then there is the appraisal system where an
employee or the internal customer know there performance. So these are the things where MCB
focuses a lot due to gaining the maximum output out of these features and this could gain the banks
ranking in the minds of its competitors. There are many different kinds of customer accounts, which
MCB offers to its customers. These accounts are individual accounts, joint account, partnership
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account, company account all these accounts have different features in it. In an individual account
there is an individual person who is authorized to operate this account for the joint account there are
more than one person who are able to open this account and for the partnership account which is
opened until unless all the documents should be available from all the partners who will be
responsible for opening this account. For the company account the memorandum of association and
the list of directors are to be shown while opening this account. In addition, in the final of this
report we discussed how MCB improved their quality by using the fishbone and pareto chart.
Therefore, this is the summary of what we have done in this project and an overall view of the
MCBs quality management, which has been properly discussed in this summary as well.
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Introduction:
Muslim Commercial Bank is one of the leading banks of Pakistan with a deposit base of
about Rs. 280 billion and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon
earned the reputation of a solid and conservative financial institution managed by expatriate
executives. In 1974, MCB was nationalized along with all other private sector banks. This led to
deterioration in the quality of the Banks loan portfolio and service quality, Then MCB became a
private bank in 1991. During the last fifteen years, the Bank has concentrated on growth through
improving service quality, investment in technology and people, utilizing its extensive branch
network, developing a large and stable deposit base and managing its non-performing loans via
improved risk management processes.
Vision Statement:
The vision of Muslim Commercial Bank is to be the leading financial services provider,
partnering with our customers for a more prosperous and secure future.
Mission Statement:
Mission of MCB is a team of committed professionals, providing innovative and efficient
financial solutions to create and nurture long-term relationships with our customers. In doing so, we
ensure that our shareholders can invest in us with confidence.
Monogram and slogan:
MCB has also changed its monogram and slogan after privatization. So the current monogram and
slogan truly reflected and expense its mission vision and philosophy.
Its current slogan is good banking getting even better. While its monogram defects 3 things
Green color of the monogram shows character of economy that is the growing ad flourishing day by
day.
Are of monogram shows Islamic style and approach.
Free shape of monogram is the symbol for safety and shelter.
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Product and services of Muslim Commercial Bank:

MCB ATM- Card:
ATM card, which is providing 24-hour service MCB ATM-Card is accepted at over 5,600
ATMs nationwide. The Card enables you to access fast cash, inquire account balance, transfer funds
and pay utility and mobile bills from any of over 675 ATM in the country. The withdrawal limit
and the fee structure of the ATM card is as Unser,
Limits & Fee Structures
Gold Plus
Gold
Silver
10,000
Daily Transaction Limits:

ATM Withdrawal
50,000
25,000
Shopping
150,000
100,000
25,000
MCB Mobile
100,000
100,000
100,000
Promotional Schemes:
Cash Back on 1st Retail Purchase (1)
PKR 250
PKR 250
No
MCB Mobile
Free
300
300
1300 cc Car Lucky Draw (2)
Yes
Yes
No
Annual/Issuance fee (3)
1,000
750
500
Replacement Charges (3)
1,000
750
500
Total Cost of 1st Year (4)
750
500
500
MCB Rupee Traveler Cheque:

MCB introduced rupee travelers cheque (RTC) in 1993 and since then has enjoyed the
largest market share with sales reaching Rs 100 billon on 1999. Today RTC are preferred over cash
and are card in all kinds of business and trade transactions, retail purchases as well as traveling.
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Features of RTC:
1.It is easily available at all the branch of the bank.
2.In case of lost or stolen, you can get full amount back.
3.Validity of this is ten year from the day of purchase.
4.Available in denomination of 10,000.
MCB Mobile banking:
MCB provides banking at your fingertips means that you can this service on your mobile
at any time to get information regarding balance and mini statement. The bank management said
that These products will be designed to not only increase MCBs potential customer reach but will
also serve to broaden access to financial services by reaching out to the under-banked in Pakistan.
MCB Mobile customers will not only be able to view their account balances and request ministatements using mobile phones, but also to make host of payments in a quick, easy and secure way.
The payments menu is offering payments of utility bills, top ups for all pre paid mobile
connections, payment of post paid mobile bills, transfer of funds from their MCB accounts to other
MCB accounts, payment of donations to PM relief fund and lots more.
MCB online banking:
MCB has largest network of over 269 online branches in the country and providing with
24*7 real time online transaction facilities. MCB mobile banking is world recognized and a very
effective service, which the bank is providing through this service a customer can does a business
or can make a payment upto billion through his mobile.
MCB call centre:
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MCB call centre is providing service to the customer by which the can get information
about ATMs, bank timing, and the customer will give feedback about the bank. MCB call centre is
offering following services of inquires that which the customer will easily get information
complaints and will give feedback about the bank performance. The services are
ATM location
Account opening procedure
MCB bank charges
Account balance inquiry
Last five transaction detail
Mobile banking activation
All credit card related request
Fund transfer request
Complaint registration
Credit card address change request
Values of MCB Bank:
Muslim commercial bank has a long term vision to innovate and transform in such a way
that the banking service become easier and satisfying for the bank customer. The bank not only
focus on profit but also their focus is on customer satisfaction and the relationship with them, they
believe that a good relationship with their customer will automatically leads them to profit. So for
that MCB gives high places to its values and by uses of these values they make decisions and
handle day to day affairs. These values help the bank management to take ethical and correct
decision and to establish friendly relationship with the customers. The values are,
Integrity
Innovation
Excellence
Customer Centricity
Respect
Integrity:
We are the trust worthy of public fund and serve our community with integrity. We
believe in being the best at always doing the right thing. We deliver on our responsibility and
commitment to our customer as well as our colleagues.
Innovation:
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We encourage and reward people who challenge the status quo and think beyond the
boundaries of the conventional. Our team work together for the smooth and efficient
implementation of ideas and initiatives. In today world to maintain the business and to satisfy the
current and to gain potential customer innovation is a main key, so MCB is more concentrated on
innovation and there are expert professionals who are doing this.
Excellence:
We take personal responsibility for our role as leaders in pursuit of excellence. We are the
performance driven, result oriented organization where merit is the only criterion for reward.
Customer Centricity:
Our customers are at the heart of everything we do. We thrive on the challenge of
understanding their needs and aspiration, both realized and unrealized. We make every effort to
exceed customer expectation through superior services and solution.
Respect:
We respect our customer values, beliefs, culture and history. We value the equality of
gender and diversity of experience and education that our employees bring with them. We create an
environment where each individual is enabling to succeed.
Code of Ethics:
Ethics is an entire body of principles and measures, which investigates the values, norms
and rules that govern the individual and social relations of the humans, from a moral viewpoint
which is essentially based on the parameters of right-and-wrong, good-and-bad, etc. Professional
ethics regulates the relations between the individual members of a profession and the relations of
these members with the rest of the society.
The fact that banks, as organizations which fulfill investment and saving functions by
playing an integrating and intermediary role between the fund-supplying and fund-demanding
parties of the society, have also adopted profitability and productivity principles, have to stick to
ethical principles during their operations in both professional and corporate domains. Muslim
commercial banks as a financial institution have following code of ethics.
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1. Ensuring accurate record:

Accurate record means that the organization have to work according to the customer
perception and will be able to provide the belonging material to the customer as instructed by the
customer than the customer will become satisfied. Internal accounting information and customer
records must be accurate and maintained with reliability and integrity, Transactions must be
reflected in an accurate and timely manner.
2. Observing Applicable Laws:
Every organization has some rules and regulation and the employees should have to work
under that rules and Muslim Commercial bank as a financial institutions work in a highly regulated
environment. The Board of Directors/Trustees ensures that bank management and relevant
employees are aware of all applicable laws and regulations.
3. Clear Penalties for a Breach of the Ethics Policy:
The Code of Ethics contain specific and appropriate consequences that would serve
unacceptable business practices, and promote accountability among employees and others to the
customer.
4. Safeguarding Confidential Information:
An organization should have to protect and let in secret the confidential information of their
customers through which the trust of the customer on the organization will increase. So Muslim
commercial bank as financial institutions have administrative, technical and physical safeguards to
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protect sensitive customer information. All affected persons must comply with the established
procedures to safeguard the confidential information of others.
Leadership of Muslim commercial bank:
Muslim commercial Bank is one of the leading names in the Banking history of Pakistan
and is still rated as one of the top banks in the country in terms of financial growth and profit. MCB
has a wide network of 1200 branches across the country where approximately 10,000 people work.
It is indeed a great challenge for the bank to manage, train and motivate it has to achieve its short
term and long-term objectives.
Muslim Commercial Bank (MCB) has a rigorous and comprehensive Leadership

Development program in the place for the development of its workforce especially for the key
positions that play an integral role in the operational or strategic avenue of the organization. Apart
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from many other traits of Leadership, some of the important traits that MCB focuses to inculcate in
its Leadership at key positions are as follows:
Cultural
Acquaintance
Thorough
information about policies
Motivation
Role
Modeling
Integrity
Competency
Role
Play as Leader
Winning spirit
Facing the
Decision
Team
Making
Management
Delegation
Respect
Time
competition and challenges
of Power/Authority
and Dignity
Management
To understand as to how MCB plans to develop its leadership as well as inculcate the
above-mentioned traits in its leadership, we must at first understand the hierarchy or the structure of
the Bank that will give us an in-depth knowledge of its operational effectiveness.
Structure/Hierarchy of MCB (Muslim commercial Bank)
Development Measures:
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MCB has a comprehensive system in place for the development of its Leadership and the
process that it mainly uses to do so is through Succession Planning.
Succession Planning
The bank divides its management into three broad groups; Senior Management, Middle
Management and Line Management. The Group Heads and the Business Heads are the part of
senior management whereas Regional Heads and the Branch Managers are the part of Middle
Management and Line Management respectively. MCB considers these three levels as highly
crucial for succession planning and most of the time selects and trains leaders from these three
levels.
The process starts from the line Management i.e. Branch Manager Level. The Bank has its
own highly developed HRMG (Human Resource Management Group). The training and
development department of this group continuously evaluates the performance of the Branch
Managers all over the country based on competencies demonstrated by them in terms of Team
Management, Role Modeling etc. This is achieved by selecting a sample of best performers from
the Branch Managers by testing their abilities through a rigorous test module known as Omega
Testing e.g. to determine their strengths. This test is conducted in consultation with an external
consultant. The training and development department as well as the external consultant test the
candidate in a separate manner and then the combined score is calculated. The Omega test is
unannounced and can be taken on any day in a year those results in determining the level of
expertise of the candidates in a normal every day environment. The branch managers that
outperform the rest are recommended for promotion to the level of Regional Head especially in
those areas in which they had the highest level of knowledge and skills. Then, they are given
training to further enhance their expertise and to facilitate/prepare them for their promotion. Job
Rotation process is also used to assess the competencies. Many constraints are faced in this process
By Training and Development Department in form Unity Break Down i.e. one out of the five
employees spreads negative politics about the effort and breaks the unity of the group being trained.
Similarly, references from higher management to hire someone derail the merit process.
Human Resource Management Group (HRMG) Hierarchy:
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The Human Resource Management Group of MCB is totally responsible for the overall
functions of the HR for the entire network of branches throughout the country. The group performs
all the necessary functions of from a strategic point of view and aspires to use its human potential in
the best possible way that can lead the organization towards a competitive advantage.
Role play by senior managers:
Senior management is generally a team of individuals at the highest level of organizational
management who have the day-to-day responsibilities of managing a corporation. They have higher
levels of responsibility, such as a board of directors and those who own the company shares, but
they focus on managing the senior management instead of the day-to-day activities of the business.
They are sometimes referred to, within corporations, as top management, upper management, or
simply seniors.
The first thing which senior management must realize from the outset is that Total quality
management is a long-term business strategy. The senior management should start TQM
implementation because they are the primary internal change agent for quality improvement. In this
situation, the senior management has two major roles; they are shaping organizational values and
establishing a managerial infrastructure to actually bring about change. They have to prepare
themselves with knowledge about the criteria of quality and put in their mind the TQM agenda.
Total quality management is the management process used to make continuous improvement to all
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Functions in organizations, the ideal continuous improvement process are the ones that begin with
and have genuine senior management involvement. On the other hand, TQM implementation needs
commitment to quality and continuously improving from all levels of staff.
Process of change in Muslim Commercial bank :
Muslim commercial bank after being a private limited focus on the improvement of the
services and product of the organization that Muslim commercial bank is offering to its customer
and has bought a change in the following areas.
1: Technological Change.
2: Training program.
3: Motivation of employees.
4: Benefits for employees.
5: Compensation system.
6: Appraisal system.
7: Structural change.
Technological change:
All the MCB branches are 100% computerized and more than 19 cities in Pakistan are
connected with online service. Two well-known advancement in technology of MCB are the
introduction of MCB mobile banking and MCB ATM 24-hours cash card.MCB mobile banking is
providing the convenience of accessing account balance information and mini statement whenever
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want. MCB having 80 ATMs machine in 12 cities having a large ATM network in Pakistan. ATM
service of MCB is successful as more than 150000 Muslim commercial bank cardholders are
enjoying 24-hours cash facilities. MCB has now gone a step further and extended its ATM network
to other banks via its recently introduced switch, MNET. MCB is already being a leader in the
Rupee Traveler Cheque Business.
Training program:
MCB were using modern technology for that purpose the organization must have skillful
employees so that they can use the technology more effectively for that MCB offers Training
programs are for their existing and new employees. These programs are according to realistic,
theoretical and practical approaches and expanding needs of the business, MCB have staff colleges
at Lahore, Karachi and Islamabad. Training session of MCB is organized quarterly.
Training to first line Employees:

First line employees are also known as the individual contributor in an organization, and
these first line employees are mostly neglected in training session. These employees in some
situation are in trouble to complete the work that effect the organization quality so the organization
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should train their employees as MCB is doing to make their first line employees effective.
Employee training should have following characteristics,
Task:
Resolve customer complaints or answer customers' questions regarding policies and procedures.
Provide employees with guidance in handling difficult or complex problems or in resolving
escalated complaints or disputes.
Discuss job performance problems with employees to identify causes and issues and to work on
resolving problems.
Train or instruct employees in job duties or company policies or arrange for training to be provided.
Review records or reports pertaining to activities such as production, payroll, or shipping to verify
details, monitor work activities, or evaluate performance.
Interpret and communicate work procedures and company policies to staff.
Skills:
Through training the following skills and abilities should have to create in individual so can
the individual play a role in the improvement of quality in organization. As for mostly said that first
line employees are the backbone of any organization so to organize training session for these
employees is important in organization.
Active Listening
Speaking
Critical Thinking
Judgment and Decision Making
Negotiation
Reading Comprehension
Abilities:
Oral Comprehension
Written Comprehension
Speech Recognition
Written Expression
Speech Clarity
Motivation of Employees:
MCB has decided to offer wide range of benefits for its employees to engage them. So that
they feel themselves an important part of organization. The purpose of top management was to give
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them such environment where they feel that top management is so caring for their employees. To
satisfy their employees management should be aware of their needs, the benefits they are offering
one covering all needs of any employees.
House building loan:
Employees of MCB who has no reasonable accommodation, MCB offers a very suitable
house-building loan. Contain share of the credit is free certain portion is on low mark up base. Any
employee can get 80 times loan of its basic salary.
Education allowance:
MCB is also offering an educational loan for the children of its employees, this educational
loan is for that employee who cant afford the expenditure of his/her children.
Computer loan facility:
Muslim commercial bank wants to train their employees according to the requirements of
the current age. For their financial support in this area, MCB is offering computer loan facility, So
that they employees can buy their own computers and make themselves an expert in it.
Compensation system:
Muslim commercial bank after privatization, the salary scale is revised one reviewed
upward. In 1997, they have given 35% increments of their basic salary. Since its privatization,
employees have increments in salary twice.
Appraisal system:
Muslim commercial bank has a very regular and transparent appraisal system. The basic
requirement for the consideration to be promoted is three years period. A performance is used for
appraisal which has different ratings, According to these ratings employees are given different
ranks and starting from A to E, rank E is the worst, Employees performance position is
communicated him to writing so that he can improved. Benefit of transparent appraisal is that
employee can himself work out his performance on criteria.
Award- Reward Program:
Muslim Commercial bank has award-reward program by which the team and
individual employee get financial benefits and certificate. The programs divide as team or employee
of the month and year according to the performance of the employee and team.
Structural change:
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In 1999 Muslim commercial bank changed its structured by dividing its business into
three major segments on the base of credit portfolio. These are the three major segments.
Corporate
Commercial
Consumer
Corporate segments include the credit of above 20 million and below comes under
consumer segments include the credit of within the range of 2 million to 20 million. Credit of 2
million and below comes under consumer segments. For one years these segments worked. Then in
the June 2000, MCB was restructured again and merged consumer segment into commercial
segment. As a result, now there are three segments, corporate commercials and priority banking.
Staffing:
After privatization, the main goal for the top was to achieve international standard of
banking with repute of preferred bank for customer, technological oriented, prestigious interior.
Customer oriented and advanced technological oriented bank.
Recruitment:
In order to introduce and inject desired changes in bank most of the recruitments were
made of external sources. For executives and higher level posts, 90% of recruitments were made
from leadings and foreign banks and the other lower levels posts were filled with professionally
Qualified candidates i.e. MBAs M.Coms Computer Programming individuals etc from well
Recognized National and international universities. So now, these new injections made it possible
to get access to new approach and new trends in banking.
Selection:
According to previous culture of Muslim commercial bank, there was lack of transparency
in the process of selection. In addition, the references have great role in selection. But according to
new culture, there is a very transparent and objective procedure for selection i.e. advertisement is
given in newspaper, having proper specifications for the employees needed, after test was
conducted and ultimately employees are selected on open merit basis.
Performance Measurement:
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After the financial crisis in 2008 bank are taking steps for their performance measurement in
light of change in economy and market condition and new management needs. Muslim Commercial
Bank measure the performance annually, for the measurement the bank has a department named as
Annual Performance Appraisal which measures the performance of the bank, in the start of a year
the management plan and set a standard, at the end of the year (APA) measures the performance the
information for measurement is obtain by their customer by using tools.
Suggestion box
Toll free number
Social media/ face book
Comment card
Direct meeting with customer
Annual performance Appraisal a department of the bank use the information obtains from these
tools and compares the satisfaction level quality service, which the bank is providing with the
standard they have set.
Obstacles to TQM:
Total quality management is a management philosophy that seeks to integrate all
organizational functions to focus on meeting customer needs and organizational objectives. Any
organization to maintain its quality and for the satisfaction of its customer should continually
improve the quality of the product and services. The organization must understand the perception of
customer about the quality. An obstacle is an object, a thing, an action or a situation that causes an
obstruction. Obstacles can be physical, social, economic, technological or political, There are a
number of barriers that face the process of TQM implementation, and the barriers/obstacles faces by
Muslim commercial bank are,
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Competitive market:
One of the effects of a competitive market is to lower quality standards to a minimally
acceptable level, this obstacles to the quality occurs by the misunderstanding of the quality
definition, Muslim commercial bank is doing a service business and in this the customers only
focus on the service quality and there are many competitors of MCB if the bank cant provide well
service to their customer than the customer will choose the competitor.
Poor planning:
The absence of a sound strategy has often contributed to ineffective quality improvement. If
management took reasonable time to plan projects thoroughly and invest in partnering to develop an
effective project team, a lot could be achieved in terms of product performance as these investments
in prevention- oriented management can significantly improve the quality of the goods or services
offered by an organization. MCB is focusing to plan effectively and to implement the planning and
taking work according to the plan.
Lack of management commitment:
A quality implementation program will succeed only if top management is fully
committed beyond public announcements. Success requires devotion and highly visible and
articulate champions. As an example of MCB management personals who are committed to
improve the quality of the service and to bring innovation in banking sector.
Lack of training:
There is evidence that lack of understanding and proper training exists at all levels of any
organization, and that it is a large contributor to worker resistance. Muslim commercial bank after
privatization brings change in some sector in which one was training to their employees, which are
directly related to quality and the training become effective for MCB.
Inadequate resources for total quality management:

Since most companies do not involve quality in their strategic plan, little attention is paid to
TQM in terms of human and financial resources. Much of the attention is drawn to increasing profit
margins of the organization with little regard as to whether their offers/ supply to customers is of
expected quality. Muslim commercial bank is providing full capacity resources to improve the
service quality of the bank and which will give more return as the customer become satisfied.
Lack of leadership for quality:
Excess layers of management quite often lead to duplication of duty and responsibility. This
has made the lower employees of an organization to leave the quality implementation to be a
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managements job. In this Muslim commercial bank wants to provide skill full leader in all aspect
to quality department to improve their quality level.
Lack of customer focus:
Most strategic plans of organizations are not customer driven. They tend to concentrate
much on profit-oriented objectives within a given period. Little market research is done to ascertain
the product or service performance in the market relative to its quality. Such surveys are regarded
by most organizations as costly and thus little concern is shown to quality improvement for
consumer satisfaction. Customers are the assets of any organization and if the organization develop
a product or service without focusing on customer than the company profit will automatically
decrease.
Juran Trilogy:
Juran trilogy consists of three managerial processes: planning, control, and improvement.
With similar analogy for better quality results, quality trilogy consists of the same managerial
processes aimed at improving quality of products and services. They are Quality Planning, Quality
Control, and Quality Improvement.MCB is using this theory for continuous improvement of their
quality the steps are,
Planning:
In planning, the organization establish objective by which it will improve the quality this is done
through before focusing on the following steps,
Determine who your customers are.
Discover your customers needs.
Develop a product whose features are aligning with the customers needs.
Develop a process whose features are capable of producing these products along with
accompanying features.
Controlling:
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Quality Control the operational techniques and activities that are used to fulfill the
requirements for quality. It is the inspection or appraisal of products and services to ensure that the
stated requirements are fulfilled.
It comprised of following steps:
Evaluate the actual operating performance.
Compare actual performance to operating goals.
Take actions in response to differences.
Quality Improvement:
Quality improvement aims at attaining unprecedented levels of performance, which are
significantly better than the past level. For improvement there is following steps
Establish the infrastructure needed to facilitate the continuous quality improvement.
Identifies the project improvement.
For each project, establish the team that is clearly in charge with the responsibility of bringing a
Successful resolution to the project.
Customers of MCB:
The most important asset for any organization is its customers. Within the context of
quality, MCB encompasses two different groups, external customers and internal customers
External customer:
An external customer is the person or organization who receives and pays for a product, a
service, or information. For example, the external customer of MCB is the one who buys bank Credit
Card, Drive etc.
Internal customer:
An internal customer is an employee or department within an organization who receives an output
in the form of a product, service, or information from another employee or department in that same
organization.
Target customer or potential customer:
Muslim Commercial bank prefer all individual or group who want to be its customer but the
focus or the potential customer would be a person or a group having high deposit.
Types Of Customers Accounts :
Individual:
Page 30
Only one person can operate this account, we can call it a personnel or individual account.
Followings are required to open it.
Signature of customer on back of AOF.
N.I.C photocopy attached
Mention next of kin (nominee)
Partnership Account:
For partnership account along with the application form signature card, Other documents are also
needed such as.
Partnership deed certified copy
NIC photocopies of all partners.
Partnership mandate for account signed by all the partners.
Company Account:
For company accounts following documents are required.
Copy of certificate of incorporation.
Memorandum of Association.
List of Directors.
Copy of board resolution.
Certificate of Commencement of Business.
Copies of NIC of Directors.
Companys Balance Sheet.
Customer Satisfaction:
Every organization has some long-term goal and without customer satisfaction, which is
impossible, Muslim Commercial bank claim that its customer are 90 % to 100% satisfied.
Supplier of Muslim Commercial Bank:
Supplier have direct impact of the quality of any organization but in banking sector there is
no such need of raw material than supplier cant have an impact on the quality of MCB but the bank
has an authorized vendor which is controlled by General Service Division (GSD) .
Criteria to be MCB vendor /supplier:
The business enterprise must currently be incorporated, or registered as a company (corporation,
limited, partnership) and be able to demonstrate that it has been and is offering goods/services under
the business name.
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The Vendor should have operated with a positive operating income for the respective periods noted
on the form and must provide Annual Reports and/or audited financial statements or certified tax
filings for that period which will be subject to financial review.
The Vendor must provide evidence of insurance coverage for the following categories:
Comprehensive General Liability and Workers Compensation.
The Vendor must legally be able to conduct business in the for which they are registering.
Quality Management:
Quality Management strives to implement the Strategy proactively and is a continuous
journey towards improving, streamlining and monitoring the existing functions and roles and
simultaneously initiating new processes and tasks to achieve superior and consistent quality.
What is Quality for MCB?
1: Quality is meeting reasonable customer requirements and delighting them in the process.
2: Quality should be aimed at the needs of customer, present and future.
3: Quality is conformance to requirements.
Use of Fishbone Diagram:
MCB uses a fishbone diagram when they:
Need to study a problem/issue to determine the root cause.
Need to identify areas for data collection.
Basic aim is to focus on the voice of the customer.
Page 32
Use of Graph:
Muslim Commercial Bank use Pareto chart to show:
When Evaluating Customer Complaints.
When trying to focus on the most significant problem or cause
When relating cause and effect, by comparing a Pareto chart classified by causes with one classified
by effects
When evaluating improvement, by comparing before and after data
The figure below shows how many customer complaints were received in each of five categories.
Page 33
Page 34
Conclusion:
What we conclude in this report is that the MCBs vision and mission in the long term
perspective which would help the customers of this bank and how they try to capture the customers
mind by having those features which would improve the quality management of MCB. They would
be looking forward for having their input from such external customers who would like to be
entertained by the internal customers of MCB. They also would like to focus on their research and
development and the innovation in technologies, which would rather help them in the future so that
nothing would be much comparable, then having the most outstanding technology in each of their
departments. If the input from the external customers is positive then the internal customers can
have more ideas to generate and the output will gain MCB more profit. So these are some
objectives that are to be focused onto and this thing can improve the total quality management of
this bank.
Page 35
Recommendation:
Muslim commercial bank is a financial institution should provide security to their customer
confidential information and provide clear and accurate documentation. The bank should focus to
improve the quality of the service and should bring innovation. The bank should have to increase its
number of ATM service so that can increase its customer. Should involve in social work and should
gain the trust of the customer. All the policy of the bank should be clear to the customer because if
customer is unaware by any policy it may become the cause to lost the customer, the employee of the
bank should to be friendly with the customer. The bank should solve the problems of their customer
quickly and should provide helpline service. The procedure of the bank service should have to be
simple and the organization should advertise their services in TV channel in newspaper so the
customer may become aware. The bank has to display all its new services in its website.
Page 36
References:
http://www.bidabad.com/doc/pls-business-cycles-en.pdf
http://www.google.com.pk/
http://www.wisegeek.com/what-are-banking-ethics.htm
http://siteresources.worldbank.org/EXTCORPPROCUREMENT/Publications/20212788/VendorEligibility.pdf
http://totalqualitymanagement101.blogspot.com/2012/05/continuous-process-improvement-and.html
http://smartinvestorsreports.blogspot.com/2012/03/barriers-to-total-quality-management.html
http://www.mcb.com.pk/
http://www.mcb.com.pk/contact_us/
http://en.wikipedia.org/wiki/MCB_Bank_Limited
http://www.zeepedia.com/read.php?deming_cycle_and_quality_trilogy_jurans_three_basic_steps_to_pro
gress_total_quality_management_tqm&b=59&c=15
http://answers.yahoo.com/question/index?qid=20070920061937AAOVGdu
http://tqmnotes.blogspot.com/
Page 37
Questionnaires:
Q1: Do you have quality department?
Q2: What are you doing to improve your quality?
Q3: do you think your customers are satisfied with your current service quality?
Q4: Do you have a training session for your employees about quality?
Q5: What feedback tool you are using to collect from your employees?
Q6: Are you giving any incentives to your employees?
Q7: Is your employees are free to take decision in some situation? If yes do you encourage them?
Q8: Do you have any supplier? If yes what kind of supplier you are using single or multiple?
Q9: Who are your customer and who will be your future customer?
Q10: which service you are offering you think is different from others?
Q11: How you motivate your employees?
Q12: Do you collect feedback from your employees and by which tool?
Q13: you are using six sigma for your quality improvement or not?
Q14: which graph you using to show your analysis?
Q 15 Do you have any performance measures or not?
Page 38

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Bahria University Islamabad

Department Of Management Sciences

Final Project Report

Muslim Commercial bank

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Product and services of Muslim Commercial Bank:

Limits & Fee Structures

Daily Transaction Limits:

1300 cc Car Lucky Draw (2)

Annual/Issuance fee (3)

Replacement Charges (3)

Total Cost of 1st Year (4)

MCB Rupee Traveler Cheque:

Group leader: SAAD SALEEM

Total Quality Management

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

1. Ensuring accurate record:

Total Quality Management

Muslim Commercial Bank (MCB) has a rigorous and comprehensive Leadership

Group leader: SAAD SALEEM

Total Quality Management

information about policies

competition and challenges

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Total Quality Management

Total Quality Management

Training to first line Employees:

Group leader: SAAD SALEEM

Total Quality Management

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Group leader: SAAD SALEEM

Total Quality Management

Total Quality Management

Inadequate resources for total quality management: