Enhancing the Distribution Network

Using Quality Control Tools

A TQM Project of

Pakistan Tobacco Company

By

Amjad Bashir
Introduction

Pakistan Tobacco Company Limited is part of British
American Tobacco, the world's second largest
international tobacco group, with brands sold in 180
markets around the world.

PTCs operations in Pakistan began in 1947, making it
one of Pakistan's first foreign investments. PTC produces
high quality tobacco products to meet the diverse
preferences of millions of consumers, and it works in all
areas of the business from crop to consumer
Mission

To transform PTC to perform with the speed, flexibility
and enterprising sprit of an innovative, consumer focus
company.

Principles

Strength from Diversity
Openness to change
Freedom through Responsibility
Enterprising Spirit
PTC Operations Distribution


PTC has most extensive distribution network with
more than 300 distributors across Pakistan

Managing such a big network of distributions was
a big challenge in management and financial
prospective

TQM Project Distribution Network


In 2005 a Project was launched Wining in Our
World (WOW)

To empower the distributors to identify problems
in distribution operations

Planning to overcome those problems

Implementation of the Plans / solutions
Scope of Project

The scope of this project involves following two
major distribution operations:

1. Warehouse Operation
2. Sales Operations

Cross functional teams were formed for carrying
out WOW project
QC Tools

Cause & Effect Diagram
Cross functional team had round of meeting with
employees and supervisors in brain storming sessions to
list down the problems
Major Problems

Warehouse Operation

Theft
Low throughput
Low wages

Sales Operations
Low Education level of sales force
Low wages
Whole dominance over retail due to
transshipment of stock
0
10
20
30
40
50
60
Thefts Throughput Wages Transport Abscentism
Pareto Chart Warehouse Operations
0
10
20
30
40
50
60
Thefts Throughput Wages Transport Abscentism
Series1
Pareto Chart Sales Operations
Conclusions

With the help of these two tools we were able to
identify major issues that were contributing to
80% of the problems

Solutions were identified and were implemented,
drastic improvements were observed in very
short span of time
Thank you!