A Study On Employees Performance in Measurement System Analysis at Madras Engineering Industrial LTD
A Study On Employees Performance in Measurement System Analysis at Madras Engineering Industrial LTD
A Study On Employees Performance in Measurement System Analysis at Madras Engineering Industrial LTD
By
N.ABBAS AZHARUDDIN
REG NO : 42809631001
A PROJECT REPORT
Submitted to the
of
SIGNATURE SIGNATURE
For analyzing the data graphical method were used. Skill matrix was prepared with
the collected data on the basis of analysis. It is found that the performance of workers in
MEIL is not an average one and many aspect need to be changed. By analyzing the findings
drawn from the study, certain suggestion and recommendation are made.
ACKNOWLEDGEMENT
With pleasure I express my gratitude and thanks to all the authorities who
effectively guided me to make this project successfully.
At the outset, I thank Mr.G.KESAV YADAV, M.A., B.Ed., our beloved chairman
and, Dr.C.SATHYAMURTHI, M.E., B.E., (MECH) our principal, for their valuable
support and advice throughout our Post Graduate course.
I also thank all faculty members of the Department of Management Studies, Lord
Venkateshwara College of Engineering for their encouragement and support.
Above all, I thank God and Parents for showering their blessings to finish his humble
piece of work.
DECLARATION
submitted for the M.B.A Degree is my original work and the dissertation has not formed the
basis for the award of any degree, associateship, fellowship or any other similar titles.
Place:
Date:
N.ABBAS AZHARUDDIN
TABLE OF CONTENT
I INTRODUCTION
V SUMMARY OF FINDINGS
5.1 FINDINGS
5.2 SUGGESTION
5.3 CONCLUSION
BIBLIOGRAPHY
LIST OF TABLES
S. No DESCRIPTION PAGE NO.
1 Average chart
2 Range chart
INTRODUCTION
PERFORMANCE MEASURES
DEFINITION:
MEANING:
A process of assessing progress towards achieving predetermined goals including
information on the efficiency with which resources are transformed into goods and services,
the quality of those outputs and outcomes of a program activity compared to its intented
purpose and effectiveness of government operate in in terms of their specific contribution to
program objectives.
PERFORMANCE INDICATORS
The items to be measured
The performance measures of an organization includes the performance measures of its each
functional elements such as customer, production, supplier, research and development,
human resources, marketing/ sales and administration. The below table showing some
important indicators to measure the various functional elements of the organization
Criteria Indicators/ determinants
1. Customer Number of customer’s complaints
Number of warranty claims
Number of suggestion per employee
Number of suggestions implemented
% returns by customers
Customer satisfaction index
Time to resolve complaints
Mean time to repair
2. Production Productivity = output / input
Labor productivity=result / labor cost
Capital productivity=result / capital cost
Material productivity=result / material cost
Effectiveness=actual result / expected result
Efficiency=expected cost / actual cost
Revenue growth
Number of break downs
Actual processing time vs waiting times
Lead time for product development
3. Suppliers Service rating
On-time delivery
Quality performance
Spc chart
Billing accuracy
Average lead time
Just-in-time delivery target
4. Research and development New product time to market
Time needed to launch a new product
Design change order
Cost estimating error
% of sale from new products
The organization can adopt any of the performance measures listed above, depending
on its requirements. However, for successful implementation, the selected measures should
try to satisfy the following requirements.
While selecting measures, one should select the measures which are more
relevant to customers.
The result of the performance measures should balanced the interest of all
stakeholders.
Strategy for implementing performance measures:
The strategic measurements include the few or more of the performance measures listed
below. These selected measures become the base on which the organization revolves. These
measurements are tracked regularly to show trends, identify problem areas, and allocate
resources. The quality council should monitor the current activities and plan the future
activities at regular intervals.
Increase in availability
Increase in effectiveness
Increase in efficiency
Increase in revenue growth
2. Quality awards,
3. Capability index,
6. Control charts.
In this series graph, the time (in days, weeks, quarter, etc.) is representing on the X-axis and
the performance measures is represented on the Y-axis and the performance measures will
take place.
Quality award:
the criteria for any quality award should include leadership, strategic planning, customer and
market focus, information and analysis, human resource focus, process management, and
business results. Therefore quality awards [ such as Malcom Baldrige national quality Award
(MBNQA) for U.S. organization – similar to Oscar Award for U.S. films] can effectively
measure the performance of the TQM effort on an annual basis.
Capability index:
It is the ratio of the tolerance to the capability. There are two measures:
This technique is based on the fact that quality loss occurs when a product’s specification
deviates from target or nominal value. The taguchi’s loss function will perform based on U-
shaped curve.
quality related cost are costs incurred by an organization to ensure that the products / services
it provides conform to customer requirements. In other words quality cost are the sum of
money spent on ensuring that customer requires are met and also the cost wasted through
failing to achieve the desired level of quality. Thus quality cost is the cost of not meeting the
customer’s requirement.
Control chart:
The control charts are powerful tools for the diagnosis of quality problems. A control chart is
simply a run chart to which horizontal lines called control limits are added, this chart consist
of the following limits that are upper control limit(UCL), central line(CL) and lower control
limit(LCL). In this chart X-axis consist of quality characteristics and Y-axis consist of time
or number of subgroups.
Control charts were first proposed by Walter Shewhart at Bell Laboratories in the 1920s and
were strongly advocated by Deming. Control limits are chosen statistically so that there is a
high probability (generally greater than 0.99) that points will fall between these limits if the
process is in control. Control limits make it easier to interpret patterns in a run chart draw
conclusions about the state of control.
If sample values fall outside the control limits or if non-random patterns occur in the chart,
then assignable causes may be affecting the process and the process is not stable. The process
should be examined and corrective action taken as appropriate. If evaluation and corrections
are done in real time, then the chance of producing non-conformance products is minimized.
Thus as problem solving tool, control charts allow operators to identify quality problems in
processes as they occur. Control charts only give the signal when the process tends to go out
of control and cannot determine the source of the problem. Operators, supervisors and
engineers may have to resort to other problem solving tools to seek the root cause
• To help each employee understand more about their role and become clear about their
functions.
• To help in identifying the developmental needs of employees, given their role and
function.
Primary Objective:
• To study the effectiveness of performance in measurement analysis among the
employees in the MADRAS ENGINEERING INDUSTRIES(P) LTD.
Secondary Objective:
• To analyze the various performance in measurement system.
• To find out the impact of the existing performance in measurement system.
• To analyze the remedial measures given to the employees
1.4 LIMITATION OF THE STUDY:
• The collection of data was not possible during the working hours.
1.5 RESEARCH METHODOLOGY:
Research Design: The researcher used Descriptive Research in this study. Descriptive
research is an attempt by the researcher to discover causes even when they cannot control the
variables.
Sources of information:
Primary data:
The researcher used Primary data for collecting information.
Secondary data:
Journals and Books.
Sampling technique:
The researcher had adopted Random sampling technique.
Random sampling:
A simple random sample is one in which every items from a population has the same chance
of selection as every other item.
Sample Size:
The sample size chosen for the study was 3 employees.
Sample area:
The sample covered in this study was the employees of MADRAS
ENGINEERING INDUSTRIES (P) LTD.
Period of study:
This project study was conducted during the period of July – August 2010.
Tools for Analysis:
• Range analysis
• Graphical analysis
Tools for presentation:
• During the analysis stage other statistical tools like tabulation were used to
tabulate the data collected.
• Range chart
• Average chart
Reason for selecting average and range chart:
Here the project considered variables (performance characteristics of employee) so
average and range charts are selected.
Average and Range chart are the control chart, this charts only give the signal when
the process tends to go out of control.
CHAPTER - II
PROFILE UNDER STUDY
2.1 Industrial profile
In 1982, Sundaram-Clayton Ltd. (SCL), a TVS group company and market leader in India in
the manufacture of air brake systems for medium and heavy commercial vehicles, outsourced
the machining of manual slack adjuster bodies (MSA), to MEIL. The Company has focused
on the manufacture of slack adjusters since then and is now one of the largest manufacturer
of MSAs in the world with annual production exceeding one million pieces. The Company
markets its MSA directly.
Legislation enacted in Europe and North America in 1996, mandated that trucks, tractor-
trailer combinations and passenger buses with air brake systems should be fitted with
Automatic Slack Adjusters (ASA) instead of Manual Slack Adjusters, as an original
equipment. MEIL developed the product indigenously in 1998 and, in partnership with John
Bruce who has considerable marketing and logistics experience in the global auto ancillary
sector, commenced its global export operations . John Bruce & Company UK was formed in
1999 specifically to market and distribute the MEI ASAs throughout the World.
Legislation requiring Indian OEMs to use ASA is expected in 2006 will expand the market
for ASA in India. MEIL, with its experience in manufacturing ASA for the international
market is well positioned to supply and service domestic requirements for ASA
Export operations of MEIL which commenced with a single customer in Europe in 1989,
now include a comprehensive range of slack adjusters used by reputed companies in the
United Kingdom and Europe, the United States of America, Canada, the Middle East, Africa,
Australia, New Zealand and Southeast Asia. MEIL slack adjusters meet SAE J 1462
requirements. The current range of MEIL slack adjusters finds over 400 applications
Sales turnover in 2004-2005 was Rs 650 million ( USD 15 million ) and employee strength
was 218. MEIL is poised to capture new opportunities in the international and domestic
markets and expects to register rapid top line growth in the coming years
Vision and mission
The Company's vision is to establish itself as the leading global player in braking
system components with a significant presence in national and international OEM and
replacement markets. Its mission is to achieve excellence in manufacturing and a leading
market share, globally.
MEIL shall encourage positive attitudes and appropriate work culture in its employees
through the right combination of recruitment criteria, ongoing training and a system of
recognition and rewards for excellent performance that promotes productivity and
interpersonal relations.
MEIL employs trained and competent professionals at every level. Emphasis is placed on
technical competence at operative entry level and the company provides in-house training to
all operatives and supervisory staff in conjunction with industry associations especially on
quality orientation.
Compensation levels compare with the best in the industry and employee relations have
always been cordial.
PRODUCTS
MEIL slack adjusters have found wide acceptance all over the globe and it is matter of
satisfaction that the company's products have been developed indigenously. MEIL holds 2
world-wide patents for its products . Development work on some other patentable products is
in progress
In a S-cam type foundation brake, the final link between the pneumatic system and the
foundation brake is the brake adjuster. The arm of the brake adjuster is fastened to the push
rod of the chamber with a clevis and the spline end is installed on the brake camshaft.
Primarily, the brake adjuster is a lever that converts the linear force of the air chamber push
rod into a torque which turns the brake camshaft and applies the brake.
Two types of brake adjusters are in use; manual type brake type adjusters, which periodically
require a manual adjustment; and self-adjusting brake adjusters, which automatically adjust
during normal service braking applications. All brake adjusters use the worm and gear
principle and fundamentally differ only in their torque limit specification.
The process of adjusting the shoe clearance manually is cumbersome and time consuming, as
we will be seeing now. The brake adjustments need several steps. Jack up the wheels and
keep rotating the wheel. Then press the worm shaft clock completely and rotate worm shaft
until the wheel locks. After this, rotate the worm shaft in the reverse direction until the wheel
starts rotating freely. Then turn the worm shaft slightly and release the lock. Repeat this
process for all the wheels. As it is difficult to maintain uniform clearance on all wheels and
this can result in vehicle pulling to one side while braking.
Not only this process is time consuming and cumbersome but also keeps the vehicle off the
road frequently, even though it is for about an hour. For example, when the truck is operated
in the city roads, the clearance has to be adjusted once in 2 or 3 days and for long distance
operation once in 10 or 15 days. It is seeing that until now the only available way to tackle
this problem of shoe clearance is to manually adjust.
The only solution to overcome this problem is to use Automatic slack adjusters, which will
maintain the pre-determined lining gap in all braking wheels by automatic adjustment of gap
to compensate the lining wear due regular usage.
MANUFACTURING FACILITIES
MEIL has two state-of-the-art manufacturing facilities ( including CNC turning centers and
CNC Horizontal machining centers) in and around Chennai and a third is being set up in the
export oriented zone on the outskirts of Chennai.
A dedicated unit for the manufacturing assembling and testing of MSAs is located at Unit I in
Ambattur Industrial Estate Chennai.
The manufacture of slack adjuster components and the assembly of ASAs are done at Unit II
in Maraimalai Nagar, on the outskirts of Chennai. Unit III at Mahindra World City Chennai, a
Specialized Economic Zone (SEZ) will begin operation in 2006.
MEIL plants have test facilities to conduct endurance and life cycle tests conforming to SAE
standards as well as customer specific standards in its full fledged laboratory. The lab is
equipped with sophisticated metrology equipment including a three co-ordinate measuring
machine to check and ensure quality of its products at all stages of manufacture. Chemical
and physical tests for raw materials, bars, castings and forgings and bought out components
are tested in house. Where required, tests carried out at reliable and certified laboratories
QUALITY ASSURANCE
MEIL Unit II is accredited with QS 9000 and MEI Unit I is accredited with ISO 9000 - 2000
QSS by TUV
MARKETING
MEI handles markting of its Manual Slack Adjusters directly from its plant at Ambattur for
all domestic and overseas customers.
MEI is marketing Automatic Slack Adjusters through John Bruce (UK) Ltd. for its overseas
customers worldwide.
For the domestic market MEI Automatic Slack Adjusters and Self Setting Automatic Slack
Adjusters (SS - ASA) are marketed from its plants in Chennai - INDIA.
CHAPTER - III
REVIEW OF LITERATURE
Napier and Latham (1986) found people were clear as to the purpose of appraisal, believed in
the instrument, and that supervisors should conduct them once a year. Indeed, they enjoyed
their own appraisal. But appraisal But appraisal seldom took place and had no effect on the
employee’s status. Appraisers were not rewarded. Indeed, if the appraiser sought to use
incidents to support unfavorable judgments with superiors, it was perceived as leading to
decreased promotion possibilities for them’.
As Meyer (Meyer, et al 1996) said they want to consider themselves above average, so it is
not surprising that they will suffer some loss of positive feelings when they are told they are
just ‘up to the job’ Perhaps, suggests Pearce and Porter, all those but in the top rank feel de-
motivated after appraisal.
In the 1990’s most of the perceived difficulties associated with appraisal have been
concerned with issues related to individual managers, or appraises. A review of recent texts in
Human Resource Management (Beaumont 1993, Marching ton and Wilkinson 1996; Goss
1994; Harrison 1993; Price 1997; Sparrow and Hiltrop 1994; Torrington and Hall, 1995;
1998) revealed the following issues. Many of these cited below are reviewed in Grint (1993).
Sofer (1975), appraisal also fits into this ideological’ framework, but for him the purpose is to
transfer structural inadequacies and failure to gain compliance from employees as they
grapple with these to the faults of the individuals. Thus it assists employees as they grapple
with these with these, to the faults of the individuals. Thus it assists managers in deploying
Etixoni’s (1975) “normative” control. Indeed, engendering guilt/ shame rather than praise
was a feature of most appraisal interviews the writer has observed in training appraisers.
Lawrence and others (1976) have suggested that the ritual purposes of management
development systems and hence, a fortiori appraisal systems which play a central part in such
systems, extends to reaffirming the myth of the career, and the possibility of upward
mobility. Appraisal demonstrates the availability of rewards the achiever and guilt as a
punishment for the underachiever.
There is little research as yet on the belief systems of management development and appraisal
though the work of Eden et al (Eden, Jones and Simon 1979) offers some possible ways of
approaching it. Indeed, it is usually reported that managers give general assent to the
suggested procedure as “a good thing” Pym (1973). However, Judy Marshall and Rosemary
Stewart (1981) have published the results of an investigation which through some lights upon
manager’s beliefs in this area. What this shows are that at least some managers. And maybe
many do not hold beliefs that are consonant with conventional management development
appraisal systems. As we shall see, in particular, they do not management development
appraisal systems. As we shall see, in particular, they do not hold the change is possible for
their subordinates.
CHAPTER – IV
DATA ANALYSIS AND INTERPRETATION
Skill Matrix;
Skill matrix, it is a matrix which will provide different knowledge and skill set of the
employees in the organization. Skill matrix contains various skills that are enforced by the
organization for the betterment of job and also for the working task. The skill matrix
contains the following parameters of knowledge as shown below.
The above are the different matrices which will be estimated for the leading employees in the
organization. And it will be tabulated as skill matrix. From the skill matrix, top management
will give preference to the future work force for the employees. Based on the skill set, the
employees will be promoted, by considering their performance in the organizational activity.
The below showing the skill matrix of employees in the Madras Engineering Industrial
Private Ltd(MEIL).
From the above skill matrix the projector decides to evaluate the performance of three
employees who has same level of knowledge in all the quality measurement systems and they
are also having similar designation. Taken appraisers from quality department and they are
working has quality inspector in the MEIL.
The project decides to find the performance of the three employees who having similar skill
set in all the area in the performance measures. It is a challenged one to evaluate the
performance of the quality inspector in the organization who having similar knowledge and
skill set.
The selected three employee induced in analyzing the bore diameter of a Automatic slack
adjuster by bore dial gauge. The type of gauge has analog (which is a manual type of
gauge). Here, this type of analog gauge is used for analyzing the performance of the
employees manually.
By using the bore dial gauge, the bore diameter of the automatic slack adjuster has been
determined. Here, ten samples of parts were given for the analysis. Everyone have analyzed
the given sample, three trails have been made for the analysis of performance.
From the determined data, average chart and range chart have been performed has shown
below.
Apprais
62.036 62.012 62.017 62.013 61.991 62.001 61.996 62.003 62.018 61.961
er A
Apprais
62.042 62.015 62.014 62.010 61.997 62.002 62.003 62.000 62.012 61.959
er B
Apprais
62.037 62.013 62.016 62.015 61.994 62.011 62.008 62.001 62.016 61.987
er C
62.011 62.011 62.011 62.011 62.011 62.011 62.011 62.011 62.011 62.011
UCL X
9 9 9 9 9 9 9 9 9 9
62.001 62.001 62.001 62.001 62.001 62.001 62.001 62.001 62.001 62.001
LCL X
4 4 4 4 4 4 4 4 4 4
The above are the data’s for average chart, it consist of the following terms
In Appraiser chart all the points are out of control limits and there is a need of training for
employees
Appraiser
0.009 0.013 0.006 0.0028 0.013 0.016 0.014 0.003 0.008 0.004
A
Appraiser
0.005 0.005 0.006 0.001 0.003 0.007 0.005 0.007 0.004 0.002
B
Appraiser
0.019 0.01 0.016 0.023 0.006 0.023 0.018 0.004 0.011 0.01
C
UCL R 0.024 0.024 0.024 0.024 0.024 0.024 0.024 0.024 0.024 0.024
The above are the data’s for range (R) chart, it consist of the following terms
Result :
In Range chart all the points are within the upper control limit and there is a difference in
performance of appraiser C when compared to appraiser A &
CHAPTER – V
SUMMARY OF FINDINGS
5.1 FINDINGS:
From the data analysis and interpretation, it is found that there is a performance
But, in the range chart, it was found that there was a vast variation between performance of
By the analysis, it is found that there is no error in the instrument, the variation in
Since , it has found that the performance of appraiser C various with that of appraiser A and
B. some corrective action has to be taken to improve appraiser C’s performance .the
Corrective action:
After training the employee in instrument awareness and handling. Again the
analysis was conducted for the same number of samples as experiment did before. Finally
Appraiser
62.036 62.012 62.017 62.013 61.991 62.001 61.996 62.003 62.018 61.961
A
Appraiser
62.042 62.015 62.014 62.010 61.997 62.002 62.003 62.000 62.012 61.959
B
Appraiser
62.043 62.013 62.016 62.014 61.994 62.001 62.005 62.001 62.016 61.975
C
UCL X 62.0105 62.0105 62.0105 62.0105 62.0105 62.0105 62.0105 62.0105 62.0105 62.0105
LCL X 62.0014 62.0014 62.0014 62.0014 62.0014 62.0014 62.0014 62.0014 62.0014 62.0014
The above are the data’s for average chart, it consist of the following terms
Result:
In Appraiser chart all the points are out of control limits. But, the performance of the
appraisers is equal compare to before experiments.
RANGE CHART DATA:
TABLE – 4.4 TABLE FOR RANGE CHART AFTER
TRAINING
Appraiser A 0.009 0.013 0.006 0.0028 0.013 0.016 0.014 0.003 0.008 0.004
Appraiser B 0.005 0.005 0.006 0.001 0.003 0.007 0.005 0.007 0.004 0.002
Appraiser C 0.011 0.01 0.016 0.01 0.006 0.014 0.009 0.004 0.011 0.012
UCL R 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020
The above are the data’s for range (R) chart, it consist of
Result :
In Range chart all the points are within the upper control
same.
5.3 CONCLUSION:
BIBLIOGRAPHY:
• V.S.P Rao, Human Resource Management, 2nd Edition, Excel Books, 2008.
• Gupta.S.P, Gupta.M.P, Business Statistics, 14th Edition, Sultan Chand & Son