Total Quality Management (890) : Presented By: Salman Ahmad Khan Roll No: W-588058

TOTAL QUALITY MANAGEMENT (890)
Presented By: SALMAN AHMAD KHAN Roll No: W-588058
22
ACKNOWLEDGMENT
All praises to Almighty Allah, the one and only, the Merciful,
Beneficent and Compassionate, Billions of Darood-o-Salam upon
Muhammad (S.A.W), Last Prophet of Allah who is the savior of humanity.
Preparing an assignment like this is often the work of a number of
people whose names generally never appear on the cover. Yet without
their help and assistance, an assignment, like this would never come to
fruition. I’d like to recognize some special people who gave so unselfishly to
making this assignment. First of all, my parents and teacher whose prayers
and efforts make this a reality. I also want to thank the persons from
organizations who co-operate very well for assignment. Thanks to all.
SAMLAN AHMAD KHAN
22
ABSTRACT
Quality is defined as Free of contamination and reproducibly delivers the
therapeutic benefit promised in the label to the consumer. Quality by Design
(QbD) is a concept first outlined by well-known quality expert Joseph M.
Juran in various publications, most notably Juran on Quality by Design.
Juran believed that quality could be planned, and that most quality crises
and problems relate to the way in which quality was planned in the first place
Quality by design rationally would be defined as quality should be built into
a product with a thorough understanding of the product and process by
which it is developed and manufactured along with a knowledge of the risks
involved in manufacturing the product and how best to mitigate those risks.
A design rationale is the explicit listing of decisions made during a design
process, and the reasons why those decisions were made. Its primary goal is
to support designers by providing a means to record and communicate the
argumentation and reasoning behind the design process. It should therefore
include:
 The reasons behind a design decision

 The justification for it
 The other alternatives considered
 The tradeoffs evaluated, and
22
 The argumentation that led to the decision
In this project I have focused on Nestles Pakistan how their designing of
canned Milo is fulfilling customer needs, how they are using different
techniques for marinating superior quality by design by using different tools
in techniques rationally in milk industry.
Nestle is the world largest food company and Nestle Milk Pak is Nestlé’s
famous UHT milk brand. Milo is added to hot or cold water and/or milk to
make a malted chocolate beverage. It does not dissolve readily in cold milk,
and so retains the gritty texture of its raw state. Milo can be stirred into
steamed milk to make a drink akin to hot chocolate or cocoa. Another
possible use is making a normal cup of cold Milo and microwaving it for
approximately 40–60 seconds. This gives the Milo drink a biscuit cover on
top. Is designed to fulfill customer expectations
22
TABLE OF CONTENT
SR. NO. DESCRIPTION PAGE NO
1. Introduction to the Issue 6
2. Quality function deployment 7
3. Main Goals in Implementing QFD 8
4. Practical Study on Nestle 10
5. Nestle Introduction 11
6 Nestle Vision & Strategies 12
7. Implementations of QBD in Nestle 15
8. Data Collection Method 20
9. SWOT Analysis 21
10. Conclusion 23
11. Recommendation 24
12. References 25
22
Introduction to the Issue

Design Process
The design process is the transformation of an idea, needs, or wants by
consumers or the marketplace at large, into a product that satisfies these
needs. This is usually accomplished by adventurous people that are willing to
take it on. Sometimes an engineer will be involved on some levels but not
always. Product designers follow various Methodology that requires a specific
skill set (usually in engineering) to complete.
Design is basically a problem solving exercise. The design of a new product

consists of the following stages:
1. Design Brief
2. Product Design Specifications
3. Concept Design
4. Testing
5. Detail Design
6. Manufacturing and Further Testing
7. Refinement and Sales
Design Space:
The multidimensional combination and interaction of input variables
(e.g. Material attributes) and process parameters that have been
demonstrated to provide assurance of quality.
22
The focus of this concept is that quality should be built into a product
with a thorough understanding of the product and process by which it is
developed and manufactured along with a knowledge of the risks involved in
manufacturing the product and how best to mitigate those risks. This is a
successor to the "quality by QC" (or "quality after design") approach that the
companies have taken up until 1990s.
In business and engineering, new product development (NPD) is the term

used to describe the complete process of bringing a new product to market. A
product is a set of benefits offered for exchange and can be tangible (that is,
something physical you can touch) or intangible (like a service, experience, or
belief). There are two parallel paths involved in the NPD process: one involves
the idea generation, product design and detail engineering; the other involves
market research and marketing analysis. Companies typically see new
product development as the first stage in generating and commercializing new
products within the overall strategic process of product life cycle management
used to maintain or grow their market share.
Quality function deployment (QFD):

Quality function deployment (QFD) is a “method to transform user
demands into design quality, to deploy the functions forming quality, and to
deploy methods for achieving the design quality into subsystems and
component parts, and ultimately to specific elements of the manufacturing
process.”
QFD is designed to help planners focus on characteristics of a new or

existing product or service from the viewpoints of market segments, company,
or technology-development needs. The technique yields graphs and matrices.
Ultimately the goal of QFD is to translate often subjective quality criteria

into objective ones that can be quantified and measured and which can then
be used to design and manufacture the product. It is a complimentary
22
method for determining how and where priorities are to be assigned in

product development. The intent is to employ objective procedures in
increasing detail throughout the development of the product.
The 3 main goals in implementing QFD are:
1. Prioritize spoken and unspoken customer wants and needs.

2. Translate these needs into technical characteristics and specifications.
22
3. Build and deliver a quality product or service by focusing everybody

toward customer satisfaction.
Since its introduction, Quality Function Deployment has helped to

transform the way of many Companies:
• Plan new products

• Design product requirements
• Determine process characteristics
• Control the manufacturing process
• Document already existing product specifications
QFD uses some principles from Concurrent Engineering in that cross-

functional teams are involved in all phases of product development. Each of
the four phases in a QFD process uses a Matrix to translate customer
requirements from initial planning stages through production control.
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Practical Study On Nestle
Milo
22
Nestle Introduction
Nestle began in Switzerland in the mid 1860s when founder Henri Nestle
created one of the first baby formulas. Nestlé’s first product was called Farine
Lacteal (“corn flour gruel” in French) Henri Nestle. The product was first used
on a premature baby who could not tolerate his mother’s milk or other
alternative products of that time. Doctors gave up on treating the infant.
Miraculously the baby tolerated Henri’s new formula and it provided the
nourishment that saved his life. Within a few years the first Nestle product
was marketed in Europe
In 1980s Nestle had a new Chief Executive Officer. The company focused
on improving its financial situation and continuing to expand. In one of the
largest takeovers at that time, Nestle bought Carnation for $3 billion and
parted with any unprofitable businesses.
Nestle is the largest food and beverage company in the world, marketing more
than 9000 brands in 85 countries with a global workforce of 250,000.
Nestle is a human company and offers tremendous opportunities for career
growth and learning at domestic and international levels. The leading in the
food industry, Nestle brings in $81 billion in overall sales and has 470
factories around the world. Nestle will continue to grow, introduce new
products and renovate existing ones.
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The company’s mission is to focus on long-term potential over short-term

performance.
Nestle Vision and Strategies
 The Nestlé global vision is to be the leading health, wellness, and

Nutrition Company in the world. Nestlé Pakistan subscribes fully to this
vision. In particular, they envision to:
 Lead a dynamic motivated and professional workforce – proud of its

heritage and bullish about the future.
22
 Meet the nutritional needs of consumers of all age groups – from infancy
to old age, from nutrition to pleasure, through an innovative portfolio of
branded food and beverage products of the highest quality.
 Deliver shareholder value through profitable long-term growth, while

continuing to play a significant and responsible role in the social,
economic and environmental sectors of the country.
 Nestle have profitable and diversified high quality food and beverage
product portfolio, delivering 60:40+ advantage to consumers, available
across all sales channels.
 Nestle brands are the preferred choice in their categories. Consumer

insight drives all aspects of our marketing and communication efforts.
 Their communications to the consumer are relevant, cutting-edge, and

adhere to the highest standards of responsible communication.
 Nestle is seen as the No. 1 career destination for talented, motivated and
ambitious professionals.
 Their result-oriented organizational structure ensures effective

communication and empowered self-management.
 Their milk collection and agriculture services will continue to play the
primary role in development of the dairy sector in rural Pakistan.
 Their proactive innovation and renovation culture is the key to our

success in the marketplace.
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 Fully integrated systems (Nestle Pakistan, suppliers, customers) ensure

efficient business processes.
 Non-strategic activities and products are outsourced or discontinued.
Nestle Milo
Milo is supposedly high in energy, because the drink has 1,760 kJ in
every 100 g of the drink. It is also for this reason, marketed as the "Energy
Food Drink". It is also supposed to have a low Glycemic Index (GI), that is, "33
made with whole milk, 36 made with reduced fat milk". This allows the
energy in Milo to be released slowly.
The Milo website states that the drink is high in calcium, iron and the
vitamins B1, B2, B6, B12. It also has Actigen-E that releases the energy stored
in a person's body.
The contents of the above said products have the following fruitful
benefits for health improvement of Human body.
Calcium
It is important for the growth of strong bones and teeth.
Protein
It is necessary for cell and tissue growth.
Phosphorous
It is important for healthy bones and teeth.
Vitamin A
It improves vision and keeps skin and hair healthy
22
Competitors of Nestle Pakistan:

Competitors of Nestle Pakistan milk industry are:
1. Haleeb
2. Engro chemicals
Total Target Market for Nestle Pakistan for Chocolate Milk
Total Target Market Of Milk (liters) 180,000,000
Annual Production Of Milk (Billion Liters) 33.25
Total market of Gawala (96%) Billion liters 31.92
Total EXISTING market of processed milk
(4%) Billion Liters 1.33
Implementations of Quality by Design in

Nestle
Phase# 1 Product Planning:
In Nestle Pakistan phase 1 which is the Building the House of Quality. Led by the
marketing department, Phase 1, or product planning, is also called The House of
Quality. Many organizations only get through this phase of a QFD process. Phase
1 documents customer requirements, warranty data, competitive opportunities,
product measurements, competing product measures, and the technical ability of
the organization to meet each customer requirement.
Phase #2 Product Design:
22
In Nestles Pakistan phase 2 is led by the engineering department. Product

design requires creativity and innovative team ideas. Product concepts are
created during this phase and part specifications are documented. Parts that
are determined to be most important to meeting customer needs are then
deployed into process planning, or Phase 3.
Phase #3 Process Planning:

Process planning comes next and is led by manufacturing engineering.
During process planning, manufacturing processes are flowcharted and
process parameters (or target values) are documented.
Phase#4 Process Control:

And finally, in production planning, performance indicators are created to
monitor the production process, maintenance schedules, and skills training
for operators. Also, in this phase decisions are made as to which process
poses the most risk and controls are put in place to prevent failures. The
quality assurance department in concert with manufacturing leads
Steps to the House of Quality

Step 1: Customer Requirements - "Voice of the Customer"
The first step in a QFD project is to determine what market segments will be
analyzed during the process and to identify who the customers are. The team
then gathers information from customers on the requirements they have for
the product or service. In order to organize and evaluate this data, the team
uses simple quality tools like Affinity Diagrams or Tree Diagrams.
Step 2: Regulatory Requirements
22
Not all product or service requirements are known to the customer, so the
team must Document requirements that are dictated by management or
regulatory standards that the Product must adhere to.
Step 3: Customer Importance Ratings

On a scale from 1 - 5, customers then rate the importance of each
requirement. This number will be used later in the relationship matrix.
Step 4: Customer Rating of the Competition

Understanding how customers rate the competition can be a tremendous
competitive advantage. In this step of the QFD process, it is also a good idea
to ask customers how your product or service rates in relation to the
competition. There is remodeling that can take place in this part of the House
of Quality. Additional rooms that identify sales opportunities, goals for
continuous improvement, customer complaints, etc., can be added.
Step 5: Technical Descriptors - "Voice of the Engineer"

The technical descriptors are attributes about the product or service that can
be measured and benchmarked against the competition. Technical
descriptors may exist that your organization is already using to determine
product specification, however new measurements can be created to ensure
that your product is meeting customer needs.
Step 6: Direction of Improvement

As the team defines the technical descriptors, a determination must be made
as to the Direction of movement for each descriptor.
Step 7: Relationship Matrix

The relationship matrix is where the team determines the relationship
between customer Needs and the company's ability to meet those needs.
Relationships can either be weak, moderate, or strong or carry a numeric
value of 1, 3 or 9 used by nestle Pakistan.
22
Step 8: Organizational Difficulty

Rate the design attributes in terms of organizational difficulty. It is very
possible that some attributes are in direct conflict. Increasing the number of
sizes may be in conflict with the companies stock holding policies, for
example.
Step 9: Technical Analysis of Competitor Products

To better understand the competition, engineers then conducts a comparison
of Competitor technical descriptors. This process involves reverse engineering
competitor Products to determine specific values for competitor technical
descriptors.
Step 10: Target Values for Technical Descriptors

At this stage in the process, the QFD team begins to establish target values
for each technical descriptor. Target values represent "how much" for the
technical descriptors, and can then act as a base-line to compare against.
Step 11: Correlation Matrix

This room in the matrix is where the term House of Quality comes from
because it makes the matrix look like a house with a roof. The correlation
matrix is probably the least used room in the House of Quality; however, this
room is a big help to the design engineers in the next phase of a
comprehensive QFD project. Team members must examine how each of the
technical descriptors impacts each other. The team should document strong
negative relationships between technical descriptors and work to eliminate
physical contradictions.
Step 12: Absolute Importance

Finally, the team calculates the absolute importance for each technical
descriptor. This Numerical calculation is the product of the cell value and the
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customer importance rating. Numbers are then added up in their respective

columns to determine the importance for each technical descriptor. Now you
know which technical aspects of your product matters the most to your
customer
QFD is a systematic mean of ensuring that customer requirements are

accurately translated into relevant technical descriptors throughout each
stage of product development. Therefore, meeting or exceeding customer
demands means more than just maintaining or improving product
performance. It means designing and manufacturing products that delight
customers and fulfill their unarticulated desires. Companies growing into the
21st century will be enterprises that foster the needed innovation to create
new markets.
Data Collection Method
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I did this quantitative research by conducted different interviews from

the quality assurance manager of nestle Pakistan and also from the
employees and engineers of nestle Pakistan.
We took many interviews from quality assurance department to get the

overall situation prevailing in nestle.
SWOT Analysis
22
Strengths:
 Strong Brand image:
Nestle has been serving the Pakistani consumers since 1988, and it has
built a strong brand image due to its quality products.
 Quality product:
 Solid Financial position:
Annual turnover is Rs.30 Billion which provides it a financial edge

over its competitors.
 Strong supply chain network:
Nestle collects Milk directly form the farmers instead of relying on the
contractors. And it distribution is also very strong. In this way it has a
complete control over its supply chain.
 Qualified work force
 Commitment to High Quality Products
 Focus on research and development
Weaknesses:
The target market of Nestle Milo’s upper middle and high class because
lower middle and poor class cannot afford to buy chocolate milk due to its
premium price.
Opportunities:
22
 More people are coming towards processed milk because loose milk is
dangerous for health due to a lot of contamination.
 Growth of processed milk is increasing with 20% annually so Nestle

Milo has the opportunity to capture a large share of market.
Threats:
 Two main competitors Haleeb and Olpers are main threat for Milo
especially the Olpers is growing very fast.
 Inflation is getting higher and higher so the purchasing power of the

people is decreasing day by day.
 There is no entry barrier for new entrants as the Olpers has come in
the market.
 Very low quality milk is provided by the milkmen to dairy farms which
is a very big threat for the entire market.
 The shortage of milk providing animals is also a threat for entire milk
industry.
Conclusion
22
Nestle is the world largest food company. Milo Energy Drink has been
made into a chocolate flavor, called the "Milo” that is manufactured by Nestle
and sold worldwide. Milo has been available for many years in a malted
flavor, marketed in a burgundy can alongside the traditional green tin.
Products based on Milo are available, such as cereal, yoghurt and ice cream.
In addition to the powdered form, there is a pre-mixed version of Milo that
comes in cans or drink boxes.
Nestle is using quality by design technique to get maximum consumer

satisfaction and through rationale ways its implement very profitable and
innovative techniques to get the maximum result from its consumer benefited
products.
Recommendations
22
Nestle is one of the top companies of the world for the current issue I give
following recommendations to the nestle Pakistan:
 It have to make changes in marketing department techniques that is the

Phase 1 of the quality be design method by widening up its target
market, targeting more segments available in the market.
 It have to bring new innovative ideas in engineering department by

designing Milo in different other ways due to competitors continuous
changes.
 It have to also look ate the quality perspective because one of the
downfall of tetra pack Milo was that in summers the milk became very
unhealthy according to different researches conducted.
22
References
1. Through Websides:
http://www.independent.co.uk/environment/green-living/online-
protest-drives-nestl-to-environmentally-friendly-palm-oil-1976443.html.
2. Sales manager Nestle Pakistan, Islamabad Mr. Naveed Qamar, I/8

industrial Area Islamabad.
http://www.authorstream.com/Presentation/robin_vinnu-623276-pharmaceutical-quality-by-design-
qbd/
22

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TOTAL QUALITY MANAGEMENT (890)

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

Beneficent and Compassionate, Billions of Darood-o-Salam upon

Muhammad (S.A.W), Last Prophet of Allah who is the savior of humanity.

Preparing an assignment like this is often the work of a number of

organizations who co-operate very well for assignment. Thanks to all.

SAMLAN AHMAD KHAN

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

Quality is defined as Free of contamination and reproducibly delivers the

therapeutic benefit promised in the label to the consumer. Quality by Design

(QbD) is a concept first outlined by well-known quality expert Joseph M.

Juran in various publications, most notably Juran on Quality by Design.

Quality by design rationally would be defined as quality should be built into

a product with a thorough understanding of the product and process by

which it is developed and manufactured along with a knowledge of the risks

A design rationale is the explicit listing of decisions made during a design

to support designers by providing a means to record and communicate the

argumentation and reasoning behind the design process. It should therefore

 The reasons behind a design decision

 The other alternatives considered

 The tradeoffs evaluated, and

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

 The argumentation that led to the decision

In this project I have focused on Nestles Pakistan how their designing of

techniques for marinating superior quality by design by using different tools

in techniques rationally in milk industry.

steamed milk to make a drink akin to hot chocolate or cocoa. Another

top. Is designed to fulfill customer expectations

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

SR. NO. DESCRIPTION PAGE NO

1. Introduction to the Issue 6

2. Quality function deployment 7

3. Main Goals in Implementing QFD 8

4. Practical Study on Nestle 10

6 Nestle Vision & Strategies 12

7. Implementations of QBD in Nestle 15

8. Data Collection Method 20

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

Introduction to the Issue

Design is basically a problem solving exercise. The design of a new product

6. Manufacturing and Further Testing

7. Refinement and Sales

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

In business and engineering, new product development (NPD) is the term

Quality function deployment (QFD):

QFD is designed to help planners focus on characteristics of a new or

Ultimately the goal of QFD is to translate often subjective quality criteria

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

method for determining how and where priorities are to be assigned in

The 3 main goals in implementing QFD are:

1. Prioritize spoken and unspoken customer wants and needs.

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

3. Build and deliver a quality product or service by focusing everybody

Since its introduction, Quality Function Deployment has helped to

• Plan new products

QFD uses some principles from Concurrent Engineering in that cross-

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

Practical Study On Nestle

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

Presented By: SALMAN AHMAD KHAN Roll No: W-588058

The company’s mission is to focus on long-term potential over short-term

Nestle Vision and Strategies