Change Management at PTC

Group Members:
Jarrar Haider -056
Faizan Anjum -101
Saleha Hashim -155
Zunaira Shabbir -102

Date: Saturday, 27
September 2014
Content
Introduction
Problem faced by PTC
TQM Program
Challenges for Implementation
SQC Tools
Solution for Change
Voice of customer
Implementation
Results
References
Introduction
Operational in 180 countries
85000 people employed
Sold 17% share of global market of
cigrates
BAT group
Was in operations in India from 1905
In 2005 PTC paid the government
Rs.20 Billion in excise and sales taxes
(66millions per day)
PTC
incorporated
in 1947
2 operational factories at Jhelum and
Akora Khattak
ISO 9001 and 14001 certified
Factories
Problem Faced by Company
Market decreasing
share
Complaints from
customers
Quality issues for product
Statistical quality
control (SQC) tools to
cater this issue
Different perception of
employee and managers
Objectives of program was to
Change organizational culture from classic
authoritative & shareholder-focused to a more
participative and consumer-focused
TQM Program
Low cost and high
quality is essential,
so need of
Efficient
and
responsive
supply
chain
Low process
wastes and
quality
product
Challenges for Implementation of
Change
Behavior and resistance to program of
employee

Motivation level was low

Series of complementary program
introduces
WOW (Winning in our World)
Business Excellence Program (MRP)
Supply Chain Modification
SQC Tools
Variation in product characteristcs
Cigarette is more lucrative product
Highly taxed
Taste dependent (question origion)

For company fighting with variations
was important

Solutions for Modifying
Behaviour of Employee for
Change
Company embarked on the SQC implementation
program with the following outlines:











Planned to get assistance of highly qualified outside
consultants for the training & education
Educate
line
Mangers.
Educate
shop floor
employee
s (Team
Members)
Developing
graphs and
use on
machines
manually.
Introduce
an online
system.
Failure and Modification
Insufficient commitment of top
management, to create enthusiasm in
the participants.
40% dropout from course on second day

Only 50% participant could manage to get
Course Attendance Certificate

Threat of failure came on the
shoulders of the consultant

New Team for Change
New hired consultant(highly respected
and experienced ), proved to be as
ineffective as the first one was.

Management now tough on different line

Approached academia professor

New team formed of two consultant and
one professor
Problem Sorted Out
Low literacy rate of the workforce is an
impediment.
Age profile of the workforce is contributing to the
lack of enthusiasm for leaning new tools
Most workers have not been to classroom
environment for more than 20 years
Finding it difficult to adjust to the environment
The lack of confidence to acquire the same level
of skills on the new tools
loose their personal leadership
Recommendation by team
Brain storming with site session
participants

Listen to their feedback and views to
make a more realistic action plan

First step towards VOC (Voice of
Customer)
VOC (voice of customer)
After consideration
Venue changed for sessions (Islamabad)
Properly invited events for session

Objectives communicated to training
manager
This not for us (trainer didnt quoted example
of relevant industry)
What is in it for me (extra work view of
employee)
What are the benefits for PTC
Alternate Route
Fact-finding team found itself facing a set
of ground realities totally different from
assumed

Need of aligning the training contents to the
training needs
The site management should carry out all the
development work using indigenous resource
Training of the employees should be done by
someone from within.
There should reward and recognition system
in place for high performers
Implementation
Training material developed in Urdu
Language
With relevent industry examples
Course completed successfully
All participants got above 60% marks in final
exam
Crashed program offered for senior
machine operators on 7-quality tools
Concerned about product, weight,
circumference and pressure-drop
Web-based quality information system
developed to display graphs on CRTs

Reward and Recognition
Comprehensive test was scheduled at
the end of each course
Top 3 position honored by professors
for recognition
Dinners arranged for participants
Results (period starting 1999 to 2007)
Factory Production Floor: (MQI)
Results (period starting 1999 to
2007)
Manufacturing Quality Index
Results (period starting 1999 to 2007)
Ex-market
Results (period starting 1999 to 2007)
Market Complaints
Conclusion
Program proved to be very successful
Within one year the shop-floor employees started
using control charts, Ishikawa & Pareto diagrams and
histograms for analysing product and process quality
and taking corrective actions.
The enthusiasm was so high that people started to
volunteer for the training course
References
Company Reference
Turab Ali Khan
Product Assurance Manager
Pakistan Tobacco Company Ltd. Pakistan

Web references
http://en.wikipedia.org/wiki/Pakistan_Tobacco_Company
www.ptc.com.pk/group/sites/pak_7shbxn.nsf/.../medMD933EBD.p
df
http://www.brecorder.com/company-
news/235:pakistan/1161783:pakistan-tobacco-company/
http://www.ptc.com.pk/group/sites/PAK_7SHBXN.nsf/vwPagesWe
bLive/DO7T5LR5?opendocument&SKN=1
http://www.pakistanbusinessjournal.com/b2b-directory/pakistan-
tobacco-company-ltd_26812.html
http://www.ptc.com.pk/
http://www.ptb.gov.pk/

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