Rolling is the process of crushing the withered leaves to allow for the release of enzymes and other chemicals. This is done by passing the leaves through a series of rollers to crush the cell walls and bruise the leaves. The objectives are: - To break the cell walls and release enzymes and juices - To distribute the enzymes and juices evenly throughout the leaf - To soften the leaf and make it pliable for curling Current Situation: The withered leaves are fed into the rollers manually in Rathnayaka Tea Factory. They have a roller machine with 3 rollers. The gap between the rollers can be adjusted. The withered leaves are passed

2. Abstract
According to the guidelines given in our continuous assignment we prepared a report for
Operation Management subject by applying any of the theories we learnt into a real world
market situation.
For this project, we chose the concept of “Total Quality Management” & selected Rathnayaka
Tea Factory which is located in Deniyaya, as the sample company to introduce this new
quality improvement tools. The main objective of this project is to introduce new quality
improvement techniques to Rathnayaka Tea Factory to enhance the quality of their way of
businesses, organizational structure & manufacturing process in a practical way.
Rathnayaka Tea Factory is one of tea manufacturing factories in Sri Lanka which produce &
export black tea for global market. It is a medium scale factory with 285 employees working
in it. Russia is one of their main customers.
One of the best things in the factory is that, “5S” concept is used in it when handling their
daily operations. And also the location selected to construct the facility is very appropriate for
tea plantation.
When referring to the weaknesses found in Rathnayaka tea factory, following issues could be
identified.
Lack of Training & Development programs to enhance the quality of work life &
productivity of human resources.
Lack of a standard quality measuring system
Lack of Research & Development Activities
Less consideration on HR practices
Not having a well organized management
Maintenance issues regarding the capital equipment
Minimum effort on workers’ health & safety enhancement
II

3. Following recommendations are suggested, to address the above mentioned weaknesses of the
factory.
Changing the plucking method appropriately to match environmental conditions
Replacing machinery with latest equipment
Continuous maintenance of the equipment
Using a belt system to transfer tea leaves among the processes
Optimization of the tea manufacturing process through an integrated computer system
Conducting training programs
Research & development
Setting standards
The above mentioned, will be elaborated hence-forth in this report.
III

4. Table of Content
Page No.
Abstract III
Acknowledgement V
Table of Content VI
01 Introduction 1
02 Rathnayaka Tea Factory (PVT) Ltd. 2
03 Total Quality Management 3-8
04 Tea Manufacturing process in Rathnayaka Tea Factory 9 - 16
05 Main Drawbacks in Tea Manufacturing Process 17 - 18
06 Recommendations 19 - 20
07 Conclusion 21
08 References 22
Appendixes 23 - 24
IV

5. 01. Introduction
According to the guidelines of our continuous assignment in Operation Management we have
chosen Rathnayaka Tea Factory & introduced Total Quality Management (TQM) concept for
the whole tea manufacturing process. Through this project we mainly focus on developing
quality of overall process & giving solutions to its weaknesses. Not only that but also we hope
to provide some basic knowledge about the Principals of TQM.
Total quality Management means,
“A way of life an organization as a whole, committed to total customer satisfaction through a
continuous process of improvement and contribution and involvement of people”
It is very important function for every type of organizations (both goods and services) because
most of the time demand of production depends on the quality of the production. Therefore lots
of companies pay their consideration to increase the Quality of their production.
Main objectives of project
Clearly identify what is the Quality and Total Quality Management.
Identify the current situation, strengths and weaknesses of overall process of tea
manufacturing in Rathnayaka tea factory.
Introduce appropriate quality improvement techniques to the overall tea manufacturing
process.
Propose suitable recommendations to increase the quality of tea manufacturing process
while considering the cost of “TQM”.
1

6. 02. Rathnayaka Tea Factory (Pvt) Ltd.
Vision
“To be the best black tea manufacturer.”
Mission
To be a leading tea manufacturer within “Southern Province” by adapting to the new
technologies and quality improvement methods to enhance the productivity and efficiency
while paying more attention to their loyal customers by providing friendly service.
Rathnayaka Tea Factory (PVT) Ltd is located in Southern province, Galle district,
Deniyaya area.
It is a family business of Rathnayaka Family & Mr. A. A. A. Muhamdiram Rathnayaka
established the Rathnayaka Tea Factory in 1919.
In present Mr. S U W Rathnayaka runs the business as a chairman with good staff
members.
It is a medium scale tea factory with 285 employees.
Normally they work from 7.30am to 4.30pm in week days & 7.30am to 12.30pm on
Saturdays.
They get their salaries based on work performed by them.
Mainly they produce Black Tea & target the Global Market.
Russia is one of their main customers & normally they export more than 20,000 tea
bags per month.
Due to the applying of 5S’ concept within their factory they have been awarded as
“One Star Tea Rating Factory”.
2

7. 03. Total Quality Management
What is Total Quality Management (TQM)?
Total Quality Management (TQM) is a quality improvement body of methodologies that are
customer-based and service oriented. It involves everyone in the organization in a continuous
effort to achieve customer satisfaction & improve quality.
TQM was first developed in Japan, and then spread in popularity. It has two fundamental
operational goals namely,
Careful design of the product or service
Ensuring the organization’s systems can consistently produce the design.
Principles of TQM
Customer-oriented– Customer defines quality and customer satisfaction is the top
priority
Leadership– Top management must provide the leadership for quality
Strategic planning– Quality is a strategic issue and requires a strategic plan.
Employee responsibility- Quality is the responsibility of all the employees
Continuous improvement- All functions of the organization must focus on continuous
quality improvement to achieve the strategic goals.
Cooperation– Quality problems are solved through cooperation among employees
and management
Statistical methods- Use of statistical quality control methods
Training and education– Training and education of all employees are the basis for
continuous quality improvement
3

8. Quality, cost classification
1. Prevention cost
These are the cost incurred to prevent quality problems before producing the product.
Training & development cost of employees
Maintenance cost of machinery
Cost incurred in purchasing better equipment or machinery
Cost incurred to build better relationship with suppliers to ensure high
quality of raw material
Salaries paid to employees to ensure high quality raw material inputs
& supervision
2. Appraisal cost. (while & after producing the product)
Objective is to ensure the expected quality. These are the cost incurred to
continuously appraise the quality of the finished goods & the working progress.
Salaries paid to working progresses involving quality checking
Costs incurred with regard to machinery & equipment & OHs
3. Internal failure cost.
If a difference product is identified within the organization & any cost amount
which can be attributable to the defective product are known as internal failure
product.
Cost of reproduction,
Cost of disposal,
Cost of investigation & rectification.
4. External failure cost
If a product is identified as defective by the customers any cost attributable are
known as external failure cost.
Cost of delivery (call back the product)
Loss of sales & reputation
Any compensation pays to the customer
Cost of reproduction
4

9. When talking about the TQM there are several different theories at work guiding TQM
practices.
 Deming's Theory
Deming's theory of Total Quality Management rests upon fourteen points of management he
identified, the system of profound knowledge, and the Shewart Cycle (Plan-Do-Check-Act).
He is known for his ratio - Quality is equal to the result of work efforts over the total costs.
Deming's system of profound knowledge consists of the following four points:
System Appreciation - an understanding of the way that the company's processes and
systems work
Variation Knowledge - an understanding of the variation occurring and the causes of
the variation
Knowledge Theory - the understanding of what can be known
Psychology Knowledge - the understanding of human nature
By being aware of the different types of knowledge associated with an organization, then
quality can be broached as a topic. Quality involves modifying processes using knowledge.
 The fourteen points of Deming's theory of total quality management are as follows:
Create constancy of purpose
Adopt the new philosophy
Stop dependencies on mass inspections
Don't award business based upon the price
Aim for continuous production and service improvement
Bring in cutting-edge on the job training
Implement cutting-edge methods for leadership
Abolish fear from the company
Deconstruct departmental barriers
Get rid of quantity-based work goals
Get rid of quotas and standards
Support pride of crafts man ship
Ensure everyone is trained and educated
Make sure the top management structure supports the previous thirteen points.
5

10.  Plan-Do-Check-Act (PDCA) –
Is a cycle created for continuous improvement? In the planning phase, objectives and actions
are outlined. Then, you do your actions and implement the process improvements. Next, you
check to ensure quality against the original. Finally acting requires that you determine where
changes need to occur for continued improvement before returning to the plan phase.
 Crosby's Theory
Philip Crosby is another person credited with starting the TQM movement. He made the point,
much like Deming, that if you spend money on quality, it is money that is well spent. Crosby
based on four absolutes of quality management and his own list of fourteen steps to quality
improvement.
 Crosby's four absolutes are:
We define quality as adherence to requirements
Prevention is the best way to ensure quality
Zero Defects (mistakes) is the performance standard for quality
Quality is measured by the price of nonconformity
The fourteen steps to continuous quality improvement, for Crosby, are:
Attain total commitment from management
Form a quality improvement team
Create metrics for each quality improvement activity
Determine cost of quality and show how improvement will contribute to gains
Train supervisors appropriately
Encourage employees to fix defects and keep issues logs
Create a zero-defects committee
Ensure that employees and supervisors understand the steps to quality
Demonstrate your company's commitment by holding a zero defects day
Goals are set on 30, 60, or 90 day schedule
Determine root causes of errors, remove them from processes
Create incentives programs for employees
Create a quality council and hold regular meetings
Repeat from step one
6

11.  Joseph Juran's Theory
Joseph Juran is responsible for what has become known as the "Quality Trilogy." The quality
trilogy is made up of quality planning, quality improvement, and quality control. If a quality
improvement project is to be successful, then all quality improvement actions must be carefully
planned out and controlled. Juran believed there were ten steps to quality improvement.
These steps are:
An awareness of the opportunities and needs for improvement must be created
Improvement goals must be determined
Organization is required for reaching the goals
Training needs to be provided
Initialize projects
Monitor progress
Recognize performance
Report on results
Track achievement of improvements
Repeat
 The EFQM Framework
The European Foundation for Quality Management (EFQM) Model is based upon nine criteria
for quality management. There are five enablers (criteria covering the basis of what a company
does) and four results (criteria covering what a company achieves). The result is a model that
refrains from prescribing any one methodology, but rather recognizes the diversity in quality
management methodologies. The nine criteria as defined by the EFQM Model are:
7

12. 1. Focus on Results - pleasing company stakeholders with results achieved by
stakeholders is a primary focus.
2. Focus on Customers - it is vital that a company's quality management leads to
customer satisfaction.
3. Constancy of Purpose and Consistent, Visionary Leadership
4. Process and Facts form the Management Focus - Management breaks down
everything into systems, processes and facts for easy monitoring.
5. Training and Involving Employees - Employees should receive professional
development opportunities and be encouraged to remain involved in the company
6. Continuous Learning - everyone should be provided with opportunities for learning
on the job
7. Developing Partnerships - It is important to encourage partnerships that add value to
the company's improvement process
8. Social Responsibility of the Corporation - The Company should always act in a way
where it is responsible towards the environment and society at large.
 Ishikawa's Theory
Creator of the last theory, Dr. Kaoru Isikawa is often known for his name sake diagram, but he
also developed a theory of how companies should handle their quality improvement projects.
Ishikawa takes a look at quality from a human standpoint. He points out that there are seven
basic tools for quality improvement. These tools are:
Pareto Analysis - Pareto analysis helps to identify the big problems in a process.
Cause and Effect Diagrams -help to get to the root cause of problems.
Stratification - Stratification analyzes how the information that has been collected fits
together.
Check Sheets - Check sheets look at how often a problem occurs.
Histograms- Histograms monitor variation.
Scatter Charts - Scatter charts demonstrate relationships between varieties of factors.
Process Control Charts - A control chart helps to determine what variations to focus
upon.
8

13. 04. Tea Manufacturing Process of Rathnayaka Tea Factory
Tea is secondly most widely consumed beverage in the world after the water. Therefore, there
is a huge demand for the tea which is grown in Asian Countries like Sri Lanka. As a result of
that Sri Lanka has also become one of major countries which exports various types of tea
flavors to the global market.
Likewise other tea factories in Sri Lanka Rathnayaka Tea Factory also follow the same process
when manufacturing tea. It mainly includes following stages:
Plucking
Withering
Rolling
Fermentation
Drying
Sorting & Grading
Packaging& Storage
9

14. 4.1 Withering
Definition:
There are two types of withering.
1. Chemical Wither: Desirable biochemical changes from plucking to initiation of
processing (manufacturing), normally 14-20 hrs.
2. Physical wither: Moisture loss, leaf becomes flaccid. Physical withering reduces the
moisture content in the leaf and correct withering is essential for quality, although, it
has always been a difficult task to determine the end-point of withers. The same
reduction in moisture percentage and increase of flaccidity of leaf to the desired level
can be achieved in a shorter period; a longer period is necessary for chemical wither.
Therefore, physical wither is regulated at a slower rate, so as to reach the desired
physical withering in the same interval as required for the chemical wither. The
objectives are achieved by passing air through the leaves.
Current Situation:
WITHERING is the first and foremost step involved in tea manufacturing. Even
though there are different methods are used in Sri Lanka for withering, “Withering Trough”
is used in our visited factory. There are 2 troughs can be seen in the upstairs of factory
building. The width of those troughs is 6 feet & the deep is 1 feet.
The evaporation of moisture in the green leaf is brought about by blowing or moving
air over the leaf in the withering trough. The current of air performs two functions,conveying
heat from the leaf as well as carrying away the water vapor through a bed of green leaves to
achieve physical withering. Whenever the hygrometric difference is below 3° C, hot air is
mixed in suitable proportion or heat energy is supplied to increase the hygrometric difference
with the concomitant rise in the dry bulb temperature of air. But the dry bulb temperature of air
after mixing should not exceed 35° C.
The extent which tea leaves is packed in trough – 2.5 sq feet to 3.5 sq feet.
The necessity of air – 20° C per kg
The speed of fans – 980 cycles per minute
The motor – 15 horse powers
10

15. After tea leaves are packed according to above standards it must be kept around 20-30
minutes. Then evaporated teas must be turned into other side. They use a Hydrometer to check
moisture content in tea leaves.
Factors that must be considered in withering process.
Tea leaves must not be raw.
Must not be faded than requirement.
It must be checked whether withering speed is similar to the pressure of air.
Tea leaves must be packed without tight.
The places of getting air must not be blocked in trough.
The supply of air must be constant.
Stream of air must be supplied through Plenum Tunnel under a pressure.
The objective of this is to reduce the moisture in tea leaves between 6-10 standard
Hydrometer values. After 8 hours withered leaves are moved to the Rolling process.
11

16. 4.2 Rolling
Definition:
Rolling is a process where rollers are used to rupture the cell walls of the withered leaves for
oxidation of the polyphenols in the presence of oxygen from air.
Current Situation:
After withering teas are moved to the process of rolling. There are two methods of
rolling. Traditional method of Orthodox & CTC method. By rolling process produce twisty
leafy tea with higher & more flowery liquor. Withered leaves are subjected to rolling machine
under pressure twisting the leaves, rupturing the cells & releasing the natural juices promoting
oxidization. Teas are rolled, twisted & broken into pieces.
Teas are rolled by four rollers. The time allocation for each rolling is, 20 minutes for
first rolling, another 20 minutes for second & third rolling & 20 minutes for fourth & last
rolling. But this time can be changed according to market demand.
The sizes of rolling machines used in the factory,
47 sq feet - Three roller machines for first rolling
47 sq feet – two roller machines for second rolling
45 sq feet – two rollers for third rolling
47 sq feet – one roller for fourth rolling
These machines must be cleaned by employees every day. There are about 12
employees are involved in rolling process.
Machine call braver is also used to separate rolled tea. There are two types of braver
machines call “Rotory Roll Braver” & “Reciprocators Roll Braver” are used in Sri Lanka.
Rotory roll braver is used in our visited factory.
12

17. 4.3 Fermentation
Definition:
Fermentation is the process during which the Polyphones in the tea leaf are oxidized in
presence of the enzymes and subsequently condensed to form Colored compounds contributing
to the quality attributes of tea. Fermentation starts immediately after cell rupture.
Current Situation:
The objective of fermentation is occurring chemical changes of tea that will lead to
increase the tasty of tea.
The result of chemical process involve in fermenting process is getting the taste, smell & color
After the rolling process of tea leaves, tea leaves are forwarded to the fermentation process to
produce different kinds of tea colors such as non-fermented, light-fermented, medium-
fermented and fully-fermented.
In this process, two (2) instruments are used to fulfill fermentation conditions and they are,
1. Humidity Fan – This instrument uses to stable the weight at about 55% of the tea
leaves during the fermentation process.
2. Wet & Dry Hygrometer – This instrument uses to measure the humidity of the
air and it performs its activity for about 2 hours and 30 minutes and it is notes that the
difference between wet & dry should be 3F0.
13

18. 4.4 Drying
Definition:
Drying is the process during which the enzyme activities are stopped & moisture content
is brought down to 2% - 3%.
Current Situation:
After fermenting teas are moved through a belt call conveyer belt to the process of
drying. The machine used for this purpose is called drier. There are three types of drying
machines can be seen in Sri Lanka.
1. Endless Chain Pressure
2. Fluid Bed Drier
3. Combination Drier
Among these machines Rathnayaka tea factory has two machines of Endless Chain
Pressure. There are 8 workers are working at a time. These workers are paid an additional
allowance. Old drier machine can dry 215 kg per hour & the new machine can produce 290 kg
per hour.
14

19. 4.5 Sorting & Grading
Definition:
Sorting is the operation in which particles of bulk teas are separated into various grades of
different sizes conforming to the trade requirements.
Current Situation:
These are many machines using in Sri Lanka for sorting. Commonly these are named as
“Winnower” machines. There are 13 grades of teas are produced. They use machine called
“Chota” for this purpose.
Sorted teas are mixed to avoid changing from one packing to another. Winnower
machines are used for this purpose. There are 3 winnower machines in Rathnayaka tea factory.
Stems of sorted teas must be removed before packing. The machine used for this purpose is
called “Electronic Color Separator”. Special technician needed for maintenance of the
machine. It is done once a year. Stems are removed by this machine using computer
technology. This machine costs more than 100 lacks & this is the most expensive machine in
any tea factory.
15

20. 4.6 Packaging & Storage
Definition:
Packaging, is a process design and produce the container or wrapper for a product
Storage, is a process of stored final out puts after packaging before it handed over to the
customers.
Current Situation:
Wood boxes, Polythene and thick paper bags are used for packing, sorted and graded tea.
Quantities and weights that can be packed in tea
Boxes Grade Boxes(Kg) Bags(Kg)
FPEK 36-38 39-42
FBOP 38-40 40-42
FBOP 1 36-38 30-40
FBOPE 1 42-44 44-45
FBOPF 48-50 48-50
BOP 1 A 33-34 35-37
BM 35-36 37-39
16

21. 05.Main Drawbacks of the Tea Manufacturing Process
There is not a proper standard system to measure quality of tea.
The management of the factory doesn’t implement a proper standard system to
measure the quality of tea & also the workers don’t have enough awareness about the
manufacturing process.
Lack of Training & Development programs to enhance the quality of work life &
productivity of human resources.
Experience of working is inherited by employees from their generation & they
don’t have proper technical skills & knowledge.
Lack of Research & Development Activities.
There are not innovations of tea. They only produce traditional black tea due to
the lack of scientist knowledge& financial limitations.
Less percentage of interest to the HR practices.
They don’t have separate HR department & pay minimum attention to the
motivation of the employees. As a result employee dissatisfaction can be increased & it
will cause to reduce the productivity of final outcome.
There is not well organized management board.
Top managers inherit their positions from generation to generation & lack of
education is the reason for this problem.
Workers don’t have proper dress code &safety equipment.
They wear casual dresses & don’t use any safety equipment. This will badly
affect to the quality of tea & their lives.
Maintenance issues regarding to the operations machines.
They don’t get any steps to prevent machine breakdowns. They only consider
about that once a machine is broken down.
17

22. Cause-and-Effect Diagram for Rathnayaka Tea Factory
According to this cause – and – effect diagram major quality issue & its root & sub causes can
be clearly identified.
P-D-C-A Cycle
PDCA is a systematic approach used for problem solving. After Identifying the root & sub
causes, carrying out a PDCA cycle is recommended to identify & solve quality issues faced by
the Rathnayaka tea factory. Following are the major recommendations which were suggested.
18

23. 06. Recommendations
Changing the plucking method appropriately
When discussing with tea pluckers we came to know that they use the same
plucking method throughout the year. But in the modern world most of giants in tea
manufacturing industry change their plucking method in accordance with environmental
conditions.
For instance they use a method called sheer plucking during July to September
when there is a scarcity of workers. Some of the other methods used are step up method,
fish leaf plucking, Janam plucking.
So we think, workers should be educated regarding this matter & it will help to
increase the quality of the plucking stage.
Replacing machinery with latest equipment
All most all the machinery used in Rathnayaka tea factory has been placed
around 1980 which means that they are still using a technology which is old for more
than 2 & half decades. But with the technological improvements nowadays there are so
many machines available in the market into which latest technologies are embedded.
Although the company is having financial limitations, management should pay some
consideration to replace the equipment even in a step by step basis. This will generate
some kind of short term financial difficulties towards the company but it will ensure the
long term quality & efficiency of the production.
 Axial flow fans-for withering
 ROTOVANES- for rolling (easy to be cleaned & maintained)
 OXYTEA continuous fermenting machine- available in both steel tray & PES
belt systems.
 Super indirect fired coal heaters-for drying (guarantees the lowest fuel
consumption in tea industry)
19

24. Continuous maintenance of the equipment
Another issue we found in Rathnayaka tea factory is that machinery are only
tested & repaired when a defect is occurred. So if machinery breaks down, it will cause
to create some idle time in the overall process. In order to prevent from these types of
inefficiencies, a continuous monitoring & maintenance system of capital assets should
be implemented within the organization.
Using a belt system to transfer tea leaves among the processes
Management of the tea factory stated that their normal loss is around 17% per
annum from the plucking stage to the consumption by end users.& while visiting the
factory we observed that a significant amount of tea leaves become a waste due to
getting trampled by workers.
Another thing is that a considerable amount of dust is mixed with the WIP as
they are laid on mats. This would have an identifiable impact over the quality of the final
product.
To address both of the above mentioned issues, a belt system can be used to
transfer WIP among the different processes. This will enhance the quality of the final
product as well as the efficiency of the overall process.
Optimization of the tea manufacturing process through an integrated computer system
Here the integrated computer system refers to an expert based plant monitoring
system in which all the critical processes are linked with an overall MIS. In the current
market most of the Sri Lankan tea manufacturers use this strategy to enhance
performance & quality of the production. Rathnayaka tea factory can also adopt this
strategy to their firm to minimize the overall energy conservation & increase the total
quality of their product.
20

25. 07. Conclusion
We have selected Rathnayaka tea factory located in Deniyaya for our OM assignment &
introduced a Quality management system to enhance the quality of final outcome.
In this project we have given brief introduction to the Rathnayaka tea factory & the current
situation of its process. Tea manufacturing process is namely Withering, Rolling,
Fermentation, Drying, and Sorting & Grading & Packaging & Storage.
We identified main drawbacks of this process & gave our recommendations to improve the
quality of the overall functions of the organization.
Finally we expect their overall quality will improve by implementing our recommendations.
21

26. 08. References
DSC 2302, “Operations Management Course Manual”, Seventh Edition, 2010, Page
41 – 50
Rathnayaka Tea Factory (PVT) Ltd - Deniyaya
www.dti.gov.uk/quality/gurus
www.school-for-champions.com
www.pureceylontea.com
www.slideshare.net
www.winsomeindia.com/manu.html
http://www.twinings.com/en_int/tea_production
22

27. Appendixes
23

28. 24