Chapter 1 Introduction

ESSENCE OF TALKS BY PAWAN SADANI

I always tell everyone in my company to work for you own happiness. Dont work for the company, work for yourself, I tell them. A company is only secondary in ones life and first of all, you are most important to yourself. When everyone works for his or her own happiness, such a company is bound to grow. Since technology knows no national boundaries, we must always keep our eye open to entire world. The product in itself is the greatest advertisement. Besides, our products are ambassadors of all technology and trust. The older I grow, the bigger my dreams grow, it seems. When dreams are lost, there is no meaning in life for me, so I will keep on doing my best towards goals until my death. A person should always pursue dreams. Always consider what is best as a whole instead of what is best as only a part. Ideas and time are absolutely intertwined with each other and cannot be separated. You cannot weave a piece of cloth with warp or with weft.

ORGANIZATIONAL PROFILE

'SADANI', a 50-year-old Group, is engaged as Importer and Distributor of Iron Sheet Cuttings, Dump Agent, Distributor and providing Warehousing Solutions for several Major Fertilizer and Cement Industries, Manufacturing and Exporting Builders' Hardware, Locks, etc. 'Sadani Overseas', the name has been connected with re-shaping various metals and manufactures various products in decorative, architectural and traditional builders hardware in brass, aluminium, zinc and iron, and specializes in high quality iron and brass locks. For our quality excellence, we are certified with ISO 9001-2000. We excel in providing different finishes like sating chrome, satin nickel, gold silver, black nickel, copper, antique, etc. Electrophoretic Lacquer can be used on forged brass products for long lasting finish and specialize in painted, anodized and powder coated iron and aluminium products. With a team of professional and skilled employees, the production is fast, accurate and always on-time. From the very first day, the company has a philosophy of 'QUALITY FIRST'. We can provide complete packaging solution like blister packing, skin packing, and custom designed printed box as per buyer's specifications under one roof. With a reputation of a company with design orientation, we always have spare capacity to design new products in sand-cast and forged brass, aluminium, zinc and iron hardware as per specifications. The company has its market share in India as well as abroad in Europe, UK, South Africa and other countries.

SADANI LAYOUT
DIVISIONS DEPARTMENTS

MANUFACTURING

PPC: Production Planning & Control. Imports: Logistics Planning and clearance of imports. Material Service: Receipt of parts on line. Paint Shop: Surface treatment and painting of Locks. Final Assembly: Manufacture of complete unit with all assemblies and subassemblies after receiving painted body from Paint Shop. Parts Quality: To ensure quality of local parts. Material Quality: Material testing and calibration of equipments. Production Administration: Training, Safety, Administration activities of manufacturing division.

FINANCE & ACCOUNTS

Finance: Financial planning, and monitoring of funds, day to day banking etc

Accounts: Maintaining the books of accounts, finalization of Balance sheet. Costing: Maintenance of cost records, budget variances etc. Excise & Tax: Filing & filling of returns and assessment of cases.

INFORMATION TECHNOLOGY

Information Technology: Maintenance and updating of website / webmail etc., software development, AFTER SALES Service & CRM: service to customers as to maintain the reliability of product and build long term relationship with customer. Sales: Monitor the sales volume, targets set & achieved, etc.

MARKETING

Marketing: Consists of activities like advertising, sales promotion, event management, merchandising, market research, product planning and public relations. Dealer Development: Infrastructure development audit
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and maintenance, dealer

ADMINISTRATION

Administration: Provides administrative suport to the organization which includes transportation, security, canteen, etc HR: Performs activities like manpower planning, recruitment and selection, performance management, training and development etc.

CS & Legal: Looks after compliance with legal and company laws

Sadani Mission Companys Fundamental Beliefs

Respect for Individual The human being is born as a free and unique individual with the capacity to think, reason, create, and ability to dream. Respect for Individual calls on Sadani to nurture and promote these characteristics in our company by respecting individual differences and trusting each other as equal partner. Respect for the individual recognizes the following core concepts: Initiative Initiative means not to be bound by preconceived ideas, but think creatively and act upon your initiative and judgment, while understanding that you must take responsibility for the results of those actions. Equality Equality means to recognize and respect individual difference in one another and treat each other fairly. Our company is committed to this principle and to creating equal opportunities for equal individual. An individuals race, sex, age, religion, national origin, educational background, social or economic status have no bearing on individuals opportunity. Trust

The relationship among associates at Sadani should be based on mutual trust. Trust is created by recognizing each other as individuals, helping out where other are deficient, accepting help where we are deficient, sharing our knowledge and making a sincere effort to fulfil our responsibility. Sadani is comprised of individual working together for a common purpose. Each individual, acting appropriately with in his or her role, must translate the philosophy into actions. It is this contribution from each associate that contributes the companys success and every associate should be honoured for these efforts. The belief of Respect for the individual should be applied to our relationship with fellow associates and with the people and companies with whom we conduct our business.

Every aspect of our relationship with our costumer should exceed their expectations. Satisfying the customer is our top priority.

Those who conduct business with Sadani business partners, dealers, and suppliers should get everything positive from their experience. The concept of Initiative, Equality, and Trust also apply to our relationship with our dealers and suppliers.

As a member of society we must be sensitive to the needs of the communities in which we do business and to the environment.

The Three Joys

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Because of belief in the value of each individual, we at Sadani believe that each person working in or coming in touch with our company directly or indirectly should share a sense of joy through that experience. This feeling is expressed in what we call The Three Joys Our goal is to provide joy through business: For those who buy our products - The Joy of Buying For those who engage in selling The joy of Selling

For those are involved in business of creating products The Joy of Creating.

In all of our business activities, we must seek to understand the meaning and importance of the three joys, which includes gaining the trust of the society and shareholders. It is believed that Sadanis existence within society will be recognized and valued by executing The Three Joys as our social responsibility.

The Joy of Buying is achieved through providing products and services that exceed the needs and expectations of each customer. The joy of Buying is essentially the establishment of relationship with the customers through the manufacturing of products and continued through the sales and service experience. Importantly, the Joy of Creating, the Joy of Selling can not be created without bringing the joy to the customer. The joy of Selling occurs when those who are engaged in selling and servicing Sadani products develops relationship with a customer based on mutual trust.

The Joy of Creating occurs when Sadani associates and supplier involved in the design, development, engineering and manufacturing of Sadani products recognize a sense of joy in our customer and dealers.

TOTAL QUALITY MANAGEMENT

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Total Quality Management (TQM) is a never ending process of improving work processes. It operates according to the premise that organizations cannot rest comfortably without continuously improving whatever is being done. There has to be a culture of continuous improvement and everyone in the organization must strive towards it. This could be accomplished only through continuous training. The present study seeks to examine the role of training as well as measuring its effectiveness for successful implementation of TQM. The training creates awareness, builds employees commitment to quality policy and strategy, facilitates teamwork, enhances performance standards, and bolsters the skills and abilities of employees. However, the organization needs to focus more upon improving communication competencies, multiple skill development and customer value training. Successful TQM training in the organization needs more budgetary allocation and commitment, support and enthusiasm of the top management.

TQM is needed 1. For the development of best organization 2. To built a happy bright place 3. To display human capabilities fully by drawing infinite possibilities 4. To reduce cost continuously 5. To improve quality continuously 6. To develop problem solving skill 7. For fuel saving 8. For cleanliness, lesser space utilization, better house keeping 9. For orderliness, improvement in system 10. For standardization of work routine and quality process 11. To reduce inventories 12. For the respect of humanity
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ECONOMIC JUSTIFICATION OF TQM Imperfect Organization a. Cost is high due to deficiencies b. Less Profit c. Selling price lower to reputation for deficiencies TQM company a) Cost is low due to no deficiencies b) High Profit c) Selling price higher due to reputation for no deficiencies

TQM MODELS 1. Juran Trilogy 2. The Deming chain reaction 3. The Mckinsey TQM model 4. The Crosby program for TQM 5. Oakland Model for TQM

Oakland Model for TQM 1. Understanding the quality 2. Commitment to quality 3. Policy on quality 4. Organization for quality 5. Measurement cost for quality 6. Planning & Design for quality
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7. System for quality 8. Capability & control for quality 9. Teamwork of quality 10. Training of quality 11. Implementation of TQM

Crosbys program for TQM 1. Management Commitment 2. Develop a quality improvement team 3. Quality Measurement 4. Cost of Quality Evaluation 5. Quality awareness 6. Corrective action 7. Supervisor training 8. Zero defect day in a year/ month/ week 9. Goal setting 10. Error causes removed 11. Recognition of people 12. Quality council

Mckinsey TQM Model 1. Strategy : Top Management should decide their strategy about quality 2. Structures : Restructuring is necessary
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3. Systems : Should be developed 4. Staff : should be utilized properly 5. Skills : Should be developed 6. Style: of functioning of the people, incharge of TQM will decide results.

BENEFITS OF TQM TQM is advantageous for various reasons as mentioned below: 1. Improved competitiveness. Quality is profitable. 2. Better profitability, better returns, reduction of operating cost. 3. Increased sales and market share. Quality distinguishes. 4. Enhances customer satisfaction. 5. Improved cost effectiveness, reduced unit cost. 6. Reduction of rejection, scrap and wastage re-working. 7. Better control on processes. 8. Successful new product launch. 9. Speedier new products introduction, more new models. 10. Re-engineered process. 11. Improved quality. Continuous improvement is an important feature of TQM. 12. Improved productivity. 13. Better relations, employees job satisfaction, employees participation, quality unites and inspires, status, recognition. Employer feels that he is committed to develop people. 14. Lead time reduction.
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WHEN WE SHOULD GO FOR TQM? We should go for TQM when 1. There is intense competition 2. Economic turn down 3. Falling prices 4. Government initiatives 5. Crisis

FOUR Cs OF TQM These are: 1. Commitment 2. Competence 3. Communication 4. Continuous improvement

PROCESS MANAGEMENT FOR IMPROVING QUALITY

OBJECTIVES OF TOTAL QUALITY CULTURE 1. How to achieve quality? 2. How to maintain quality? 3. How to improve quality on a continuous basis?
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TOTAL QUALITY CULTURE STANDS ON FOLLOWING THREE PILLARS: 1. Building quality policy 2. Quality system 3. Quality management Process PROCESS A series of activities/tasks performed to produce desired one. A series of operations convert available inputs into desired output. Inputs of various types used to produce an output or outputs by a series of value adding activities.
1. PROCESSES AREA OF MANAGEMENT/ADMINISTRATION PROCESSES

Facilities management Information management Purchasing Resource allocation Safety management Strategic planning Tactical planning

2. HUMAN PERFORMANCE MANAGEMENT PROCESSES

Career progression/succession planning Compensation management Performance monitoring/feedback/recognition Recruitment/hiring Training

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People satisfaction

3. BUSINESS DEVELOPMENT PROCESSES

Competitive analysis Forecasting Market research Pricing/proposal development/quotation Promotion Sales

4. CUSTOMER SERVICE PROCESSES

Complaint resolution Customer measurement Inquiry handling Service provisioning Warranty management

5. FINANCIAL MANAGEMENT PROCESSES

Accounts payable Accounts receivable Auditing Budgeting

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Cash management Capital expenditure Financial reporting Results monitoring Investment management

6. CHANGE MANAGEMENT PROCESSES

Process improvement Deployment Self assessment Cost reduction Benchmarking

7. PRODUCT PROVISIONING PROCESSES Billing/collection Distribution Inventory management Manufacturing Order fulfillment Product planning/scheduling Purchasing Supplier selection and management
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8. PRODUCT DEVELOPMENT PROCESSES Market needs identification Product introduction Product development

PROCESS MANAGEMENT Process management means identifying and monitoring a process, ensuring it meets a target within limits, discovering abnormalities and preventing their recurrence. WHY MANAGE A PROCESS? Achieving good results is a paramount in any company because they indicate commendable performance which is what management strives to have. Good results are a lagging indicator of performance. Only when results are achieved do we know that we have performed well, but we must be able to predict results. For this we need a leading indicator.

WHAT ARE THE REQUIREMENTS OF A GOOD PROCESS For a start, the process should be documented. Everybody should be trained and the performance measures to monitor performance of the process should be well understood. If the process goes out of control, corrective action should be taken to bring it back to control.

DAILY PROCESS MANAGEMENT The concept applies to the sales process in marketing and sales operation. Assume one of the performance measures in the operation is the success rate defined as: Success rate = Number of qualified prospects who purchase Number of qualified prospects

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IDENTIFYING KEY PROCESSES TO BE MANAGED

Customer

Understand market and customer needs

Define the

product

Design the product and

Check that the product meets the original needs and internal

Use the date to improve products and new designs

Customer feedback on product

Customer uses the product and gets service and support

Sell and deliver the product

Manufactu re the product

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THE PRODUCT DEVELOPMENT PROCESS One of the best ways of ensuring a good product definition process is by using the quality function deployment QFD methodology. QFD is a tool that helps to tightly link the entire product development process. It enhances the product definition process and also ensures that the succeeding processes such as design and manufacturing are linked to product definition. CONTINUOUS IMPROVEMENT To keep pace with the changes in the external environment managers have to change the organization. Managers have always made improvements. However with rates of change increasing in the external environment, managers must improve differently and more frequently than in the past. They must pursue continuous improvement which is a constant striving to change and make things better. The following steps would make continuous improvement happen: 1. Expect improvement 2. View problems as opportunities 3. Constantly examine the value of policies practices and procedures 4. Drive out the forces of fear 5. Recognize success and share the credit 6. Assess improvements based on data not intuition 7. Encourage innovative thinking and new ideas 8. Least reliance on mass inspection 9. Justify costs intelligently BENEFITS OF PROCESS IMPROVEMENT Following are the benefits of process improvement: 1. Effective 2. Efficient
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3. Acceptable to changing customer requirements 4. Improved productivity 5. Enhanced customer satisfaction 6. Shorter cycle times 7. Improve sales market shares increased profits 8. Cost reduction 9. Competitive 10. Improved teamwork, increased inter department interaction

APPROPRIATE LEVEL FOR IMPROVEMENT OF PROCESS Objectives of the team Selection of Process Description of process involved Flowchart the process Identify the customer/supplier relation Current Knowledge of Process Identify measures of performance Develop possible cause factors Document what was learned Action Improvement Cycle Synthesize Planning Observation and Analysis

SYSTEM APPROACH TO TOTAL QUALITY CULTURE System approach is inherent in total quality culture. TQM culture is openness teamwork system approach customer focus and orientation quantitative orientation attitude of continuous improvement.

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An organization should have a clear and well structured system which identifies documents, coordinates and maintains all activities needed to assure the necessary quality actions throughout all organization operations. total quality can be achieved by standardizing each and every one processes from manufacturing to advertising internal communication, holding of meetings from training to customer service in the form of system. NEED FOR SYSTEM APPROACH TO TOTAL QUALITY CULTURE 1. Facilitates an interested awareness of the importance of quality through an organization. 2. Specific operation within the manufacturing environment may be viewed as components of a large system that must be integrated to achieve the overall quality objectives. 3. Integration of advance technology, corporate culture, modernization of production infrastructure, utilization of human resources. 4. Integration of product quality, operation productivity, facility, maintenance, customer satisfaction, equipment utilization, quality of raw materials, quality of customer services. NEW ATTITUDE 1. Integration of product life cycle 2. Design of future operating environment 3. Capability of manufacturing process 4. Planning production 5. Distribution 6. Field services 7. Quicker, cheaper, better, profitable products of better quality

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The system theory of management is built upon the tenet that the whole is more than the sum of its parts. QUALITY CONTROL A process or set of processes designed to 1) define established standards of quality that will meet customer expectations; 2) assess whether products, services, processes, or systems conform to those standards; and 3) identify any gaps, nonconformities, or failures to meet those standards. TOTAL QUALITY CONTROL Total quality control focuses on examining the processes in an operation, to learn where mistakes are being made, why they are happening and if it is possible, practical and economically desirable to prevent them from recurring. Inspection has its place in TQC, but it is inspection of the process, not the product -- a principle in line with Dr. Deming's teachings.

So how do you improve a process?..First, you need to identify and define the problem. The recognition of a problem may come from internal (worker) or external (supplier/customer) sources. Both sources are invaluable, but unfortunately not all organisations provide feedback opportunities. Then the process giving rise to the problem has, likewise, to be identified and documented. Flow charts often prove to be the most useful form of documentation, as they are geared to breaking any operational process down to its nuts and bolts.

SIX SIGMA Six sigma is a highly disciplined process that helps us focus developing and delivering near perfect products and services. The question arises, what is sigma? Sigma is a Greek letter that measures the capability of the process to perform defect free work. The central idea behind six sigma is that you can measure how many defects you have in a process. You can systematically figure out how to eliminate them and get as close to zero defects as possible. A six sigma defect is defined as anything outside the customer specifications. Six sigma is a business concept that answers customers demand for high quality and defect free business process. Customer satisfaction and its improvement should be the highest
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priorities of any business. In other words, six sigma is about abandoning the uncertainty of goals and forecasts. Simply defined, six sigma approach identifies and eliminates defects with a structured, data-driven, problem solving method using rigorous data gathering and statistical analysis. Traditional methods depend on measuring outputs and establishing control plans to shield customers from organizational defects. A six sigma program demands that problems be addressed at the root level, eliminating the need for unnecessary inspection and rework processes. KEY CONCEPTS OF SIX SIGMA Six sigma revolves around a few key concepts: Critical to quality Defect Process Capability Variation Stable Operations Design for Six Sigma : : : : : Attributes most to the customer Failing to deliver what the customer wants What your process can deliver What the customer sees and feels Predictable processes to improve what the customer sees

and feels : Designing to meet customer needs and process capability

Six sigma A vision of quality which equates with only 3.4 defects per million opportunities for each product or service transaction. Strives for perfection. SIX SIGMA COSTS AND SAVINGS 1. In the world of Six sigma quality, the saying also holds true: it takes money to save money using the six sigma quality methodology. You cant expect to significantly reduce costs and increase sales during six sigma without investing in training, organizational infrastructure and culture evolution. 2. Sure you can reduce costs and increase sales in a localized area of business using the six sigma quality methodology. But is it going to last when a manager is promoted to a different area or leaves the company? Probably not. If you want to produce a culture shift within your organization, a shift that causes every employee to think about how their actions impact the customer and to communicate within the business using a consistent language, its going to require a resource commitment. It takes money to save money.
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Breakthrough Six sigma uses the proven problem-solving technique of Define-MeasureAnalyze-Improve-Control (DMAIC) to deliver quantifiable performance improvement: D M A I C Define customer needs and improvement goals Measure variables of the process Analyze data to establish inputs and output Improve system elements to achieve performance goals Control the key variables to sustain the gains

GLOBAL PERSPECTIVE OF WHAT MAKES SIX SIGMA 1. A new type of top level support 2. Problem solving and team leading super stars 3. Training like never before 4. New metrics 5. Much better use of teams 6. A new level of process comparison 7. A new corporate attitude/culture 8. A closer look at old metrics SIX SIGMA IN MANUFACTURING The driving force for the new standard that Six sigma quality has come from within global manufacturing, where the scale and type of production implies that 99 percent product quality is no longer good enough. Back in the 1920s, it is likely that production processes had considerably more tolerance to error, and the cost of a defect would be small. Large scale mass production was limited principally to motor car manufacture, where ford and other companies were applying economies of scale to the production line. The way cars were put
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together implied that if the glass for a windscreen did not quite fit, then small adjustment might be made on the spot, or the glass would be scrapped. Either way, the customer paid. Even as late as the early 1980s, such vehicles as the Land Rover showed how much give and take had been built into the original design, which in part dated back to before World War II. It had been shown many times that an early Land Rover could be maintained in the middle of a desert with only the most rudimentary of tools and skills, but the overall performance of such machines was poor. The engine piston rings allowed copious amounts of sump oil to leak into the upper cylinder, but the result was ease of production and maintenance- it had worked for almost fifty years.

The UK and USA have a long tradition of innovation and design, but necessity is the mother of invention and without the necessity, it is far too easy not to invent and to remain with the status quo. Japanese industry, on the other hand, had nothing to lose, and had no difficulty in obtaining competitors cars, taking them apart piece by piece, and then improving on everything it found. There was a time when many Japanese competitors knew more about a car than the original manufacturers did. The necessity for the Japanese industry was to break into foreign markets, in which they were never leaders, had no competitive edge and little experience. How could this possibly be achieved? The answer is simple: be much cheaper than anyone else. Cost is a strong determining factor, but it is not everything, and if lowering cost means lowering quality, as it usually had in the past, then Japanese manufacturers soon gained a reputation of low cost and low quality products. The aim therefore had to be producing something of equal or better worth, at a lower cost, and this meant eliminating waste and every unnecessary expense. By distilling the very essence of what customers wanted, and then redesigning both processes and products to deliver zero waste, the Japanese destroyed forever the far too comfortable relationship between product cost and quality. In manufacturing today, it is no longer possible to pass the expense involved in generating good quality back to the customer, since someone else in the world will soon find a way of delivering similar quality without the associated costs. Historically, improved quality meant greater quality assurances, where additional expenditure was involved with the testing and rejecting products after manufacture. The quality concept today is the better quality actually
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saves money. None of this is particularly new, but manufacturing has been far too long obsessed with product quality and not customer quality. Only by looking beyond product specifications and quality assurance can manufacturing see that excellent quality comes with total customer satisfaction, and it is only by employing several quality methodologies to help improve product quality and reduce costs, but Six sigma goes beyond this and brings a new emphasis to three essential areas: 1. Customer requirements 2. Process improvement for defect reduction 3. Total Quality Management involving all employees The cost of quality is a real limiting factor in what can be practically achieved in terms of delivered excellence to the customer. The practical steps involved in guaranteeing product or service quality do inevitably require an associated cost and overhead, which has traditionally been balanced against the reduction in real cost associated with the failure and rework from poor quality. SIX SIGMA IN SERVICE INDUSTRIES The greatest challenge for Six sigma in practice is to be found in non manufacturing environments. If the methodology relies so heavily upon statistics, how can it be applied to an area where, traditionally such measurement and analysis have often never set foot? The reality is that any task is in fact, a process, and exhibits variation similar to the normal distribution, and it can be measured and improved. The difficulty lies in bridging the gap between subjective issues such as what actually constitutes a defect, and concrete, measurable and actionable variables. Service industry is even more in need of Six sigma quality initiatives than manufacturing simply because output trends to go directly to customers, whereas in manufacturing, most defects in processes are also more complex and less robust than in manufacturing, and often there is virtually no history of design and control of anything except financial matters. The reality is quite blunt. Consider a supermarket checkout, where a customer approaches with 100 items in the Christmas shopping basket. For this customer, success in terms of the
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checkout process demands that it is fast and accurate. For such a process, manufacturing would have tolerances, scrap and rework procedures, and monitoring control. To give supermarket their due, checkout process has improved dramatically in the major grocery chains during the 1990s, but there still exist major stores in the UK where it is simply not possible to price up 100 items without some problem or the other. Failure to scan, retrieve a price lookup or enter a price accurately will immediately demonstrate that the process has no tolerance for failure: it stops, and rework is very expensive. As far as the customer is concerned, who is very much a part of the process, one defect actually means that the entire process is defective and a failure. No one walks away from supermarket saying, That was 98 percent successful, rather, they just cant get those cash registers to work. Various levels of attainment have been associated with companies which increase quality through better inspection, quality assurance, better design and operation of processes, and the ultimate goal of zero defects. Such levels can be tied loosely to Six sigma process metrics of three, four, five and six sigma, and the various stages in implementing Six sigma quality. The improvement point to note is that only by removing error, failure and rework rather than increasing inspection and quality assurance can the cost equilibrium point be shifted towards a better level of performance. It is this ever growing intolerance among human beings for experiencing failure that drives service industries into repeated quality initiatives. Every year, a new flavor of management consultancy suggests a variation on a theme of staff training, reward encouragement and the likes. No quality initiatives in manufacturing would last for two minutes if it was suggested that talk or exhortation would make better cars. Measurement, analysis, consideration, improvement, and then verification of the improvement are fundamental to any quality initiative today, and service industry cannot be different. Six sigma has the tools and the power to cut ice where hot air has contributed little in the past.

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MANUFACTURING PROCESS OF PRODUCTS

Supplier Raw Material Casting/Forging/ Stamping Machining/ Grinder Polishing/Lancering Surface Treatment Electroplating Electrophoreting Lacquering Final Checking Packing as per Specifications OK Products Dispatch

SUPPLY PROCEDURE OF PRODUCTS

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Ordersheet for Foreign Buyer Process to Distinguish Type of Work Material Selection as per Requirement Defining Product Manufacturing Process Chart Making for Various Departments of Manufacturing Inspection Report Synchronization Final Inspection of Product Packing Inspection Dispatch Papers for Customs/Government Organizations Insurance E-mailing relevant papers to respective departments Closure of Ordersheet

WHAT IS WASTE
1. Anything other than the minimum amount of equipment, material, part and working

from absolutely essential to product/service is waste. 2. Anything other than the absolute minimum resources of material manpower, space required to add value to the product is waste. Absolute minimum resources are one equipment, no people, no space, dedicated to rework, one supplier, no safety stock, no excess lead time, no people doing jobs which does not add values. Waste hidden problems TQC eliminates problems. TWE and TQC both reduce problems. Any work content consists of value added and non-value added activities, or avoidable and non-avoidable.
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CLASSES OF WASTE

There are twelve main classes of waste: 1. Waste in excess production 2. Waste in waiting 3. Wastage in conveyance 4. Wastage in processing 5. Wastage in inventory 6. Wastage in motion 7. Wastage in defects 8. Wastage in tentative placement 9. Wastage in communications/procedures 10. Wastage in untidiness 11. Wastage in bottlenecks 12. Wastage in timing MAJOR SOURCES OF WASTE 1. Storage 2. Material handling 3. Yield losses up 4. Set up time and start time 5. Queuing 6. Unnecessary stock 7. Idle time/idle cash 8. Sledge hammer for a nail 9. Maintenance machine breakdown 10. Talent misuse 11. Paper work

WASTE SPOTTERS GUIDE

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Type Overproduction

Symptoms Piles of work in progress target and achievement clear, ambiguous standards, staking at every possible corner of factory. Employees waiting for instructions without activity. Idle running of equipment. Team activities are low. Lack of precision, stacking and unstacking. Excess of conveyors, too many trolleys, trucks and forklifts moving on the floor. Prescribed stocks are exceeded, material waste due to storage period exceeding shell life, and procedures are very complicated and involve a lot of paperwork.

Countermeasures Query underlying reasons, standardize work in progress and mark out location, condense layout, and consider flow production. Chart standard work, construct of allocation of work, rebalance work, bring in more work or shed work. Analyze process flow, combine process, link process.

Waiting

Conveyance

Unnecessary processing

Motion

Defects

Investigate standard and procedure for stock identification, material condition, and deteriorated stock. Location, replenishment, withdrawer review production change-over. Required items are not within easy Use 4 M checklist reach. Multiple handling of materials. Man Layout not standardized. Equipment Machine widely spaced. Heavy traffic of men and Material vehicles on floor. Method Poor material yield. High effort for Clearly identify problems, inspection. Difficulty in assembly. Huge causes and countermeasures. If rejects and reprocessing. Too many supplier is involved, give customer complaints. feedback and refuse substandard material, clear objective standard.

Quality Management System at Sadanis Product Range:

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Manufacturing and exporting is undertaken for variety of Builders Hardware, Architectural Ironmongery and Locks. General Requirements:
1. The Organization has established a documented system vide this Quality Manual. The

same is implemented and maintained. The Quality Manual Fully describes the action being taken by the organization in respect of the requirements of the international standard.

2. The implementation of the Quality Management System is being ensured as follows:

a. Necessary Process Of the Quality Management System have been Identified and described in the Quality Manual. b. In respect of identified Process, the sequence and interaction has been suitably mentioned in the Quality Manual and related documents such as procedures and other related documentation. c. Where applicable suitable criteria and methods to ensure the effective Operation and control of the processes have been determined and mentioned in the relevant documents (Quality Manual and Procedures). d. Processes have been made in such a manner that suitable Information is available to support the operation and monitoring of the processes. In addition, resources to support the operation and monitoring processes have been identified and provided. e. Where necessary, action is taken to measure, monitor and analyze the processes. f. Suitable action are taken to achieve planned result and continual improvement of the identified processes.

3. While identifying the processes and controlling them, the requirements of ISO 9001 : 2008 are fully taken to account.
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Documentation Requirements: 1. Company has prepared a Quality Management System in lined with ISO 9001 : 2008. 2. Company has documented system consisting of : a. Quality Manual which gives Quality Policy and Objective Organizational Structure Responsibility of key personal Addressable of applicable clauses of ISO 9001 : 2008

b. Quality Procedures giving the details of various activities and processes. c. Products control standard, Work Instructions, d. Formats for recording the results to generate evidence of implementation of Quality Management System. e. Records to demonstrate the compliance to the laid down Quality Management System. 3. Training is provided to all concerned on the appropriate part of Quality Management System.
4. Implementation and Effectiveness of Quality Management System is periodically

evaluated by regular Internal Quality Management System Reviews.

Process Sales/Marketing

Name Of Interacting Process Purchase

Type Of Interaction 1. Intimation Of Purchase and delivery schedule from vendor.

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2. Priority Of raw Quality Control materials sample. 1. Customer Feedback and complaints 2. Customer Production Requirements. 1. Intimation of Delivery Schedule. 2. Customer feedbacks and complaints. 3. Production Planning Store And Dispatch as per Order 1. Intimation of Delivery Schedule. 2. Priority Of material to be dispatched

Purchasing Production 1. Purchase requirements as per the order or Quality Control delivery schedule. 1. Approval of Material and Vendors for procurement. 2. Intimation of non conforming products Stores purchased. 1. Mock of maintaining the stock of material required to how much purchase as per production. 2. Intimating the material shortage to purchase.
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Production Sales/Marketing 1. Intimation of product ready for dispatch. 2. Delay in delivery due any reason for particular item. 3. Customer feedback and complaints. 4. Status of Products under production to Quality Control customer. 1. Intimation of final inspections of products. Dispatch Quality Control Production 1. Intimation of finished goods quality and if any rejection. 2. Suggestion for production process Sales/Marketing improvements. 1. Customer satisfaction and complaints. 2. Customer specifications or Purchasing Dispatch Sales and Dispatch Purchasing 1. Requirements of Material On the Basis Of Inventory.
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2. Customer Feedback. 1. Intimation of products ready for dispatch.

requirements. 1. Feedback about material purchased. 1. Approval of Products to dispatch

2. Feedback to purchasing about Production materials. 1. Status of Inventory to purchase. 2. Products to be Quality Control dispatch. 1. Approval Of products to be dispatched. 2. Checking of products before stock and Sales/ Marketing deliver to production. 1. Information of material dispatched.

Control Of Documentation The control of documents procedure is established as follows: 1. UNIQUE IDENTIFICATION AND NUMBERING OF DOCUMENTS
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A unique number identified the documents. The numbers are allotted as per the following scheme: Quality Manual : SO/ QMS/ QM/ XX. SO QMS QM XX : Sadani Overseas : Quality Management System : Quality Manual : Any number from 00 to 99, which represents the overall edition

number of the Quality Manual.

Process Control Standards / Quality Plans: SO/ AAA/ XX SO AAA XX : Sadani Overseas : Type Of Product or Process : Any number from 00 to 99

Format : SO/ XXX/ FF/ YY SO FF XXX : Sadani Overseas : Name of Format : Short from the Name of Department.

Eg: Purchase Department PUR YY : Any Number from 00 to 99

2. REVIEW AND APPROVAL Review, Approval and Issuance of documents is done as per the following: S.No. DOCUMENTS CATEGORY REVIEW AND APPROVAL
38

ISSUING AUTHORITY

1 2 3 4 5 6 7

Quality Manual Work Instructions Products control standard/ Quality Plans Forms/ Formats Audit Schedule/ Audit Plan Training Plan/ Training Schedule Master List

AUTHORITY M.R. Proprietor M.R. Proprietor M.R. Proprietor M.R. M.R. M.R. M.R. Proprietor Proprietor Proprietor Proprietor

Proprietor M.R. M.R. M.R. M.R. M.R. M.R.

3. MASTER LIST Internal Documents Master List is maintained for Internal Documents Like Products Control Standards/ Specification/ Formats. External Documents Master List is maintained for External Documents as per Review and Approval Authority. 4. DISTRIBUTION Documents are distributed as per the distribution details given in the Master Lists. A Master Copy of each document is retained by M.R. The copy distributed to user is marked as CONTROLLED. The OBSOLETE is marked in Red. 5. UNCONTROLLED COPY In case documents are issued to those who do not figure in the distribution list, they are marked as UN-CONTROLLED in Red before they are issued. Drawings/ Inspection Plans/ Work Instructions/

6. CONTROL ON EXTERNAL DOCUMENTS a. External Documents are checked for their validity every six months by contacting the relevant authorities such as Certification Body. b. The Revision Level and Distribution of External Documents is controlled through Master List of External documents. Any changes in the documents are updated in the Master List.
39

7. DOCUMENT CHANGE

a. Changes to document are reviewed and approved by the same functions that have originally reviewed and approved the documents. b. In case the Original Approving Authority is not available, the alternative function has access to proper background information. c. The revision number of the documents is changed as per note given. d. The amended documents are distributed to all controlled copy holders and M.R. ensures the return of the obsolete documents.

8. CHANGE IN QUALITY MANUAL

a. Any amendment in the quality manual is entered in the Revision History. The revision number of the particular section(s) is incremented by 1 and the same is indicated in the Content Sheet of the Quality Manual. b. The copy holder returns the obsolete page to the M.R. c. When the number of amendments in the range of 15 to 20, the next edition of the Quality Manual shall be released d. Any hand written corrections on the controlled documents cannot be carried out unless supported by the signature of the Approving Authority of respective Documents. e. Each section of the Quality Manual is a document to be separately controlled in the Content Sheet. In case of changes in the Quality manual the affected section is replaced by the revised one.
40

The revision number of this section is updated in the content sheet by encircling the current revision status. The amendments are entered in the Revision history also.

f. The amended section(s) are distributed to the Controlled Copy Holder by M.R.

CONTROL OF RECORDS 1. Records are maintained at Sadani Overseas provide evidence of conformance to requirements and effective operations of the Quality Management System. The Concerned persons who have been made In-charge of the relevant records are also responsible for Identifications, storage, retrieval, protection and their disposal when retention time is over. 2. Records are reviewed for their retention period every year. Those records which have receded their retention period are disposed. 3. The HODs ensure that the quality records are legible and are readily retrievable.
4. The List Of Quality Record is maintained.

5. The Quality Record of Each financial Year are collected together and are identified with a tag mentioning the financial year.

MANAGEMENT COMMITMENT 1. Commitment to the development and Improvement of the Quality Management System is ensured by:

a. Communicating to all relevant organizational personnel the importance of meeting customer requirements, as well as statutory and regulatory requirements. This is done through documenting the Quality Manual and related documents and distributing the same to relevant organizational personnel. b. Establishing the Quality Policy.
41

c. Establishing the Quality Objectives. d. Regularly conducting Management Reviews. e. Identifying and then providing resources through the medium of the management review and subsequent follow up. CUSTOMER FOCUS 1. Needs and expectations of the customers are determined on a continuous basis. They are converted to requirements of the customer. These identified customer requirements are then conveyed to the respective departments and personnel to ensure the achievement of customer satisfaction. This is done by first laying down a suitable system and later reviewing the same in the light of changing customer requirements with the aim of enhancing customer satisfaction. Controlled is exercised on this by the Proprietor based on inputs from the Market.

QUALITY POLICY We shall provide Quality Builders Hardware, Architectural Ironmongery and Locks to our customer timely with their requirements and satisfaction. We are committed to our customers; We would improve our performance to Quality Management System. The Quality Policy is available to public on request and is communicated to all employees. The Quality Policy awareness training is imparted to all employees.

QUALITY OBJECTIVES 1. Following Quality Objectives have been laid down, consistent with quality policy and commitment to continual improvement. a. To reduce rejection b. To deliver our product at 99% on time.
42

c. To enhance our export Market. 2. Suitable Programs for the achievement of the quality Objectives have been made. The Quality Objectives are reviewed in MRC meetings. ORGANIZATIONAL STRUCTURE

Proprietor Marketing & Sales Account Section Production Manager Production Supervisor Checkers

Store Incharge

Workers

RESPONSIBLITIES AND AUTHORITIES The responsibilities and authorities are clearly defined:
1 1.1

Proprietor Duties and Responsibilities

a. Overall In charge of the whole Organization. b. Financial Management and Budget Control.
43

c. Resources planning and their provision. d. Marketing and liaison with clients e. Setting the Quality standards on item to item basis. f. Communicate the importance of meeting customer as well as statutory and regulatory requirements. g. Established Quality policy h. Ensure that Quality Objectives are established i. Conduct Management review meeting j. Ensure availability of resources.

1.2 Authorities a. Recruitment and appointment of personnel. b. Calls and debrief Heads Of departments with regards to the progress of their functions. c. Signing of Purchase Order and Evaluation of Vendors d. Purchase of Machine/ Tools/ Equipments etc e. New Vendor Development f. Negotiation with vendors and finalizing the rates.

2. Production Manager 2.1 Duties and Responsibilities

a. Production related Overall Operations

44

b. Giving the Quality Guidelines to Subordinates. c. Overall maintenance of Machinery d. Finalizing the Packing requirements of a product e. Dispatch of finished product to customer f. Receipt, Storage and issuance of material. g. Maintaining stock of Products.

2.2 Authorities

a. Assigning work to supervisor, checkers, Stores b. Production Planning in consultation with Proprietor c. Keeping track of production d. Assignment of work to supervisors

3. Production Supervisor 3.1 Responsibilities

a. Routine production b. Machine Setting c. Ensuring Production under operational control parameters

4. Store In Charge 4.1 Responsibilities

45

a. Control of Receipt and issue of incoming materials from designated storage area. b. To maintain stock of materials c. Packing as per the Packing standards d. Dispatch Materials as per customer requirements or as per order

MANAGEMENT REPRESENTATIVE 1. Management Representative is appointed by the Proprietor or Self. 2. Responsibilities and Authorities of Management Representative are as follows:

a. To ensure that the process of the Quality Management System are established, Implemented and Maintained. b. Reporting to the Top Management On the Performance of the Quality Management System, including any need for improvement c. To promote awareness of customer requirements throughout the Organization. d. Act as the secretary Of Management Review Committee e. Liaisoning with all external agencies such as Certification Agency and Consulting Organizations.

INTERNAL COMMUNICATION

46

1. Internal Communication has been established between various functions and levels regarding the Process of Quality Management System and their effectiveness as follows:

a. Development Of Quality Manual and related Documentation such as Procedures and Work Instructions and passing these on to concerned personnel for implementation and maintenance of Quality Management System b. Periodically Reviewing the Operation of the Quality Management System such as Internal Audit and Management Review. c. Review Of Incoming Demands as received through Phone/ FAX messages/ Emails. d. Daily Production Meeting Based Upon Customer Requirements of Product specification, quantity, quality, price etc. e. Planning for appropriate training for personnel. f. Continuous Personal Discussion at all levels.

MANAGEMENT REVIEW

1. A Management Review meeting is held to ensure the continuing suitability, adequacy and effectiveness. During this review need for changes to the Quality Management System including Quality Policy and Quality Objectives are also examined and implemented.

Review Input 2. Following input is complied and put up to management review committee by Management Representative/ Concerned Head Of Departments.
47

a. Result of Audits b. Customer Feedback c. Processes Performance and product conformance data d. Status of Preventive and Corrective actions e. Follow up actions from earlier Management Review Meetings. f. Any Other Changes which may affect the Quality Management System by Management Representative/ all Heads of Departments. g. Recommendation for improvement from employees, customer Head of Department etc. h. Resource Planning i. Infra structure Requirement.

Review Output 3. The output of the management review committee includes the following:

a. What Improvement to Quality Management System and its processes is needed? b. What improvement is needed to meet the product related customer requirements? c. What resources are needed additionally or need up gradation?

Miscellaneous 4. Result of the MRC meeting are recorded by Management Representative as follows and issued to all Heads of the Departments.

48

a. Persons who attended (all management personnel up to functional In-charge level would be invited to attend) b. Points discussed c. Decision taken d. Responsibility for taking action e. Dates for competition of action on each point discussed.

WORK ENVIRONMENT 1. Organization has identified and provided suitable work environment needed to achieve conformity of product.

Well lit work area with clean work space Clean drinking water

Production Manager reviews the work environment once a quarter with his supervisor. Any additional requirement is provided either by the manager himself or it is taken up in the MRC meeting.

PLANNING OF PRODUCT REALISATION 1. General

a. Organization has made processes and sub processes required to realize the product. The realization process made are consistent with other requirements of the Organization, Quality Management System and are documented.
49

2. In planning product realization, the organization has also determined the following:

a. Quality Objective Made b. Requirements of the product determined as per customer specification. c. Suitable process developed, documented maintained and resources provided. d. Required verification, validation, monitoring, inspection and testing provided, criteria for acceptance of product laid down where needed. e. Records neede per kept by management representative.

CUSTOMER RELATED PROCESS 1. Determination of requirements related to the product 1.1 Sadani Overseas determine the following requirements

a. Requirements specified by the customer, through specification in order form. b. Requirements not stated by the customer, but necessary for specified use or known intended use, such as inside processing, and type of finish etc. c. Applicable statutory and regulatory requirements related to the product d. Any other additional requirements determine by Sadani Overseas

2. Review of Requirements related to the product

50

Product requirements are reviewed together with additional requirements of the customer, prior to commitment to supply a product to a customer. Before making such a commitment to the following is ensured.

a. That the product requirements are fully defined and understandable b. That the differing requirements between customers initial order and our final supply are fully resolved, through discussions with the customer. c. That the organization has the ability to meet the defined requirements.

51

3. Customer Communication The organization has identified customer communication arrangement relating to inquiries, contract, order handling and amendments, customer feedback, customer complaints as follows. a. All current customer orders are reviewed for their progress every week by production manager. b. Regular customer feedback is obtained from the customers. Each customer is visited once in six months and customer feedback is taken on three criterias namely Quality, Delivery and responsiveness. c. They are recorded in Customer Satisfaction Measurement Form (SO/CRP/CS/02). If required, the feedback is given to relevant department/ personnel for corrective actions by initiating corrective action report. The position is reviewed periodically and suitable communications sent to customer in this regard.

PURCHASING 1. Purchasing Process

1.1.

Organizational has developed control of its purchasing process to ensure that

the purchased product conforms to requirements. This is achieved as follows

a. 100% check on all incoming items is done by a nominated supervisor. Criteria is laid down by Production Manager and explained to the concerned supervisors. b. All incoming items are checked as per invoice of the vendors and specification mentioned in invoice of each product. 1.2. The selected list of suppliers (vendors) [Approved Vendor List] is maintained with the production manager.

52

1.3.

New vendors are added in the list based upon the evaluation done as per Vendor Registration Form (SO/ PUR/ VR/ 02). Once the vendor is theoretically evaluated, following is the criteria and method of selection.

a. If required, visit is made to vendors premises to verify the details. b. Sample order is placed after ascertaining the credentials of the vendors on preliminary basis. c. Trial order is placed after satisfactory submission of the sample. d. Incoming item is inspected against purchase order placed and other verbal instructions regarding Quality of product. e. If item is found O.K then repeat order may be placed. f. Once the vendor has given at least one satisfactory lot, the vendors name is placed on Approved Vendor List. 1.4. The decision of the Proprietor for acceptance of the product given by the vendor and placing/ removing the name of vendor from the approval list is final.

2. Purchasing Information

The purchasing information is provided to the vendor through telephonically because the order are verbally placed and any bulk raw material is purchased through purchase order (SO/ PUR/ PO/ 01)

PRODUCTION AND SERVICE PROVISION 1. Production Planning: Upon finalization of the order, Production Manager makes out the production planning to meet the target delivery schedule by going through Order register for
53

production. The order quantities are also dispatched partially and the track is maintained of the entire order quantities in the Pending order list as per advise of customer.

54

1.2 Production Control

a. Production is controlled through Products Control Standards/ Quality Plan (SO/ QMS/ QP/ 01). The process control standards are made for all products. The Product control standards define the Type of Product, type of process, and inspection mode. Work instruction explaining Production control parameters for each operations are made available to operators. b. Suitable equipments is identified and List of machines is provided. Maintenance of equipment is suitably planned and implemented by Production Manager. Records are kept for maintenance done in Machine Maintenance Record (SO/ PRD/ MM/ 01). c. Suitable measuring and monitoring devices have been provided and their details are available as per Master List of Calibration Equipments is available with the production manager. These are calibrated once a year or as per the defined frequency and Calibration Records (SO/PRD/CL/02) are kept by the production manager. d. Suitable monitoring activities during operations, control are Organized and mentioned in Products Control Standards/ Process. e. Preventative maintenance is conducted by the respected operators as per the daily maintenance work instruction. f. Machine break down are promptly attended. g. Product is not released to delivery to customer unless all verification activities are completed and final clearance is given by the Production Manager. All products can be completely tested to know about their performance. 2. Identification and traceability
2.1 Following identification and traceability arrangements have been made and are

implemented at Sadani Overseas.

55

a. In Coming: Verification of Purchased Material through invoice and noted down in receiving inspection register for casting products, Stock Register for Purchase Material and also for Raw Material, semi finished products. b. In Process: Polish Register, Checking Register, Casting and also products laid down in the different bins. c. Final identification: Complete Product for final inspection in inspection room, Packing Register, Delivery Record. 3. Customer Property

Whenever Customer property is received, it is suitably identified, verified, protected, to avoid damage and deterioration. 4. Preservation Of Product
4.1 Products including constituent parts of the products are preserved during internal

processing as per requirements. This also includes identification, handling, storage and protection. This control is exercised by the Production Manager through Production Supervisor.

CONTROL OF MONITORING AND MEASURING EQUIPMENTS 1. Organization has identified measurements to be done and measuring and monitoring devices required for the same. Measurement Capability of the instrument is taken into account, while selecting the appropriate instrument. Reference can be made to Master List of Calibrated Equipments. 2. The list of the measuring and monitoring devices so selected is available with Production Manager. Following action is taken with respect to all these instruments.

56

a. They are calibrated and adjusted periodically, prior to use. The calibration is done against devices traceable to National standards. b. They are safeguarded from adjustments that may invalidate the calibration. c. They are protected from damage and deterioration during handling maintenance and storage. Suitable boxes will felt/ foam lining are provided and people trained to handle them. d. Calibration certificate and record is kept for all instruments by Production Manager including Criteria for calibration in Calibration History Card. e. Calibration status of measuring instruments is identified on calibration status sticker. f. Where the instrument is found out of calibration, items inspecting using the same are re checked using a properly calibrated instrument.

MEASUREMENT ANALYSIS AND IMPROVEMENT GENERAL 1. The monitoring measurement, analysis and improvement process have been identified and implemented to achieve the following:

a. To demonstrate conformity of the product. b. To ensure conformity of the quality management system c. To continually improve the effectiveness of the quality management system.

MEASUREMENT ANALYSIS AND IMPROVEMENT MONITORING & MEASUREMENT

57

1. Customer Satisfaction

The organization has a system of measuring customer satisfaction. Every Customer is visited/ contacted at least once in six months and customer feedback is recorded in visit report or customer satisfaction form for criteria related to quality, delivery and responsiveness. This is utilized for measuring customer satisfaction index on annual basis.

2. Internal Audit 2.1 a. The organization conducts periodic internal audits once in every six months to determine whether the Quality Management System conforms to the requirements of ISO 9001: 2008 b. That the Quality Management System has been effectively implemented and 2.2 maintained.

Programs for conduct of internal audit (SO/ IAP/ IA/02) is made by Management Representative and takes into consideration the status and importance of the activities and areas to be audited, as well as the result of the previous orders. Management representatives also decides audit scope, frequency and methodologies in internal audit plan (SO/ IQA/ IP/ 01). Audited are selected from personnel other than those who perform the activities being audited.

2.3

Responsibilities of auditors for conduct of audit are explained to them through a training program or through performance audits under a qualified auditor. Recording and reporting of the results to be Management are also explained to the auditor.

2.4

Audi tee i.e. Heads of Departments take appropriate and timely corrective action on deficiencies found during the audit. The corrective action is recorded on the audit report.

2.5

Follow up action on the audit report is checked at two levels.

58

a.

By follow up the auditor during a special or next audit who endorses

his findings on the audit report. b. Further checked is exercised by Management representative. In case

the taken and verified, the Management Representative consider the non conformity for closure. 2.6 Internal audit records are kept by Management Representative.

3. Monitoring and Measuring of processes. Suitable operations have been laid down in the product control standards. These are reviewed by Proprietor/ Production manager every year. Where ever necessary changes are recommended. Changes are finally approved by Proprietor. Process monitoring records, where ever applicable are mentioned. 4. Monitoring and measuring of products

4.1 The organization has identified the characteristics of products which require measurements and monitoring of product in order to ensure the performance of the product. These are carried out at appropriate stages of the product realization process and document in inspection standards and recorded in Products control Standards. 4.2 Evidence of conformity with the acceptance the criteria is documented in Inspection Registers. Records indicate the authority responsible for release of a product. The production manager signs the relevant Inspection report.
4.3 No product is released unless all specific activities has been satisfactorily completed.

This is ensured by the production manager who carries out the inspection as specified in Products control standards are recorded. 4.4 Following stages are identified for carried out inspection:

Stage

Sample Plan
59

Records

In- Coming Inspection

As per vendors invoice

Invoice, Receiving Inspection register, Stock Registers. Polish register, Checking Registers. Final Inspection Register before packing, Packing Registers, Delivery Records.

In Process Inspection Final Inspection

As defined in product control standards As defined in product control standards

MEASUREMENT ANALYSIS AND IMPROVEMENT: CONTROL OF NON CONFORMING PRODUCT

1. The organization ensures that the product which does not conform to the requirements is identified and control to prevent un intended use or delivery. Such product is called non conforming product. This is done as follows: a. Non conformity observed at any stage of operations i.e. from raw materialprocessing- inspection- packaging is identified and segregated. b. Each of such non conforming products is examined and send for rectification. c. After correction, product is re verified to demonstrate its conformity. If found conforming the same is further processed. d. When non conformity of the product is detected after delivery or use, the same is examined to take appropriate action regarding the consequences of the non conformity. The nature of appropriate action is decided by the production manager in consultation with proprietor and all concerned including the customer.

MEASUREMENT ANALYSIS AND IMPROVEMENT: ANALYSIS OF DATA

60

1. Organization has a system to collect and analyze appropriate data to determine the suitability and effectiveness of Quality Management system and to identify the improvements that can be made. 2. Customer satisfaction is measured by the organization
3. Operations for the realization of the product are given in Product control standards.

The operations of the process reviewed periodically by Proprietor/ Production Manager.

4. Characteristics of product are documented. Proper productions records regarding

acceptance and rejections are maintained at the plant. The trends of rejection are reviewed by the Production Manager. 5. Vendors performance is monitored for quality, cost and delivery and this data is reviewed by Proprietor. The same is utilized for making the approval list of vendors and issuance of cautionary letter where ever necessary.

MEASUREMENT ANALYSIS AND IMPROVEMENT 1. Continual Improvement. 1.1 The organization plans and manages necessary continual improvement of the Quality Management System through medium of management review committee meeting. The organization reviews the following through the management review committee meeting.

a. Quality Policy b. Quality objectives c. Audit results d. Customer satisfaction index

61

e. Customer complaints f. Review of processes g. Review of Product rejection at shop floor. h. Review of Product rejection of incoming items. i. Resources j. Training k. Corrective and preventive action.

2. Corrective action 2.1 The organization takes appropriate corrective action to eliminate the causes of non conformity in order to prevent reoccurrence. Corrective action so planned is appropriate to the impact of the problem encountered.

2.2 Plant non conformation are identified by the Production Manager and his staff. Inspection deficiencies are noted by the Production Manager and informed to Director. System non conformities are discovered as a result of internal audit.

2.3 The complaint received from the customer pertaining to the product are recorded in

the Customer Complaint register (SO/ CRP/ CC/ 03). Based upon the complaint, necessary corrective action are taken. Rejection Data is maintained for rejection in the production register.

2.4 In all these cases of Non conformity i.e. production, inspection and system, the respective head of department prepare a CAPA report (SO/ CRP/ CAPA/ 04) to cover the following:

62

a. Nature of no conformity or problem b. Causes to be taken c. Action to be taken d. Implementation e. Record/ checking after implementation f. Final closure comments and signature of management representatives.

3. Preventative Action 3.1 Organization identified the Preventive actions to eliminate the causes of potential non conformity to prevent occurrence. Preventive actions so planned are appropriate to the impact of the potentials problem. 3.2 In case of each problem requiring preventive action the same is investigated and resolved as per CAPA report by respective Head of department/MR.

Document Master Index

SOS/ DCS/ DMI/ 01

S.No. 1 2 3

Document ID SOS/ QMS/ QM/ 01 SOS/ DCS/ DMI/ 01 SOS/ CQR/ MQR/ 01

Document Name Quality Manual Document Master Index Master list of Quality Records
63

Distributed to Proprietor or MR Proprietor or MR MR

Revision No./ Release Date 00/ 1st March 2009 1.0/ 1st March 2009 1.0/ 1st March 2009

4 5 6 7

SOS/ HRP/ PCM/ 01 SOS/ IQA/ IAP/ 01 SOS/ PRD/ PCS/ 01 SOS/ PRD/ WI/ 02

Personnel competence MR Matrix Internal audit program MR Process control standards Work Instructions MR MR

1.0/ 1st March 2009 1.0/ 1st March 2009 1.0/ 1st March 2009 1.0/ 1st March 2009

MASTER LIST OF QUALITY RECORDS S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name Of Record Agenda of Man. Review Meeting Minutes Of Meeting Training programmed Training Record Receiving Inspection Register Finished Stock record (Iron) Finished Good stock record (Brass) Order file Packing register Internal audit program Internal Audit Report summary Internal audit plan Corrective and prevention action report Customer satisfaction report Vendor Registration form Approved vendor list Verbal Purchased orders Record Number SOS/ MRM/ADA/01 SOS/MRM/MOM/02 SOS/HRP/TP/01 SOS/HRP/TR/02 SOS/PRD/RI/01 SOS/PRD/STR/02 SOS/PRD/STR/03 SOS/MKT/OF/01 SOS/PRD/PR/04 SOS/IQA/IP/01 SOS/IQA/IAS/02 Retention period 03 years 01 years 01 years 03 years 06 months 06 months 03 years 03 years 03 years 03 years 03 years Location Of Record MR MR MR MR Supervisor Production incharge Production Incharge Prop. -doMR MR MR MR MR Purchase Incharge -do-do-

SOS/IQA/IAN/03 03 years SOS/MRM/CAPA/02 03 years SOS/MKT/CSW/02 SOS/PUR/VR/02 SOS/PUR/AP/01 SOS/PUR/VPO/01

64

03 years 03 years 03 years 06 months

18 19 20 21 22 23 24

Machine Maintenance Record Preventive Dispatch Record File Customer complaint Register Customer Property register Issue Challan book Receiving challan book Approved Vendor list

SOS/PRD/WKS/05 SOS/MKT/DRF/03 SOS/MKT/CCR/06 SOS/MKT/CPR/06 SOS/PRD/ISB/07 SOS/PRD/RCB/08 SOS/PUR/AVL/03

06 months 06 months 06 months 06 months 06 months 06 months 06 months

Prod. Supervisor Marketing Incharge Prod. Supervisor -do-do-do-do-

MINUTES OF MEETING Name Of Topic : Fifth Management Review Meeting Name of Facilitator : Mr. Pawan sadani Attendees Mr. Pawan sadani MR/Prop. Date : 10/06/2011 Duration : 1 hour

Deliberations Agenda Review Of: 1. Internal Quality Audit Findings 2. Improvement Recommendations and plans 3. Customer feedback, complaints and their resolutions.
65

4. Review of resources and follow up from Previous Management Reviews 5. Policies and objective to meet the changing circumstances 6. Status of corrective and preventive action taken 7. Effectiveness of implementation of QMS 8. Process performance and product conformity trends

Details of Action Point Discussed S.No. 1 Action Point Review Of Internal Quality 2 Audit Findings Review Of customer feedback, complaints and 3 4 their resolutions. Review of Status of CAPA action Review of resources and follow up actions taken from previous management 5 reviews Review of recommendation 6 for improvement Review of effectiveness of QMS MR -doMR -doMR MR On going -DOOn going MR 10/06/2011 10/06/2011 Responsibility MR Start Date 10/06/2011 End date 10/06/2011

66

Audit Program SOS/IAP/MAR/01 AUDIT PROGRAM Audit No.: 11 Date of Audit: 10/06/11

Date 10/06/11

Time 10:30 am

Area MR Functions and Responsibilities Orders and Deliveries Quality Policy and Objectives Vendor's Selection Lunch Works Instructions Packing and Q.C. Purchase CAPA Reports Stock

Auditee

Auditor

Name/Designation Mr. Pawan External Consultant Mr. Pawan Mr. Pawan Mr. Pawan Lunch Mr. Pawan Mr. Pawan Mr. Pawan Mr. Pawan Mr. Pawan -doExternal Consultant -doLunch External Consultant -doExternal Consultant External Consultant -do-

10/06/11 10/06/11 10/06/11 10/06/11 10/06/11 10/06/11 10/06/11 10/06/11 10/06/11

11:00 am 11:30 am 12:00 pm 12:30 - 1:00 pm 1:30 pm 2:00 pm 2:30 pm 3:00 pm 4:00 pm

67

SOS/IQA/IAS/02 INTERNAL AUDIT REPORT SUMMARY

S.N o 1.

Audit No. 01

Department

Finding s Satisfact ory

MR Functions & Responsibilit ies

NonConformance (major/minor ) None

Claus e of ISO 9001 5.6

Propose d Closure Date -

Actual Closur e Date -

Remarks Positive/negative After audit it as been found that MR is very responsible and doing his functions satisfactorily and everyone cooperates with him to implement properly. After purchasing every material, check with quality and quantity and record of verbally purchase is evident. Every customer's requirements have been noted in order register or order book. Customer feedback is very satisfactory. Production records of every stage well maintained and verified Packing records verified. Corrective and preventive action has been taken for store. They have

2.

01

Purchase

3.

01

Marketing

Material Purchas e verbally and recorde d in verbal purchas e book None

None

7.4

None

7.2.2

4.

01

Production

None

None

7.2.2

5. 6.

01 01

Packing CAPA Reports Customer

None None

None None

7.5.5 8.5.2, 8.5.3 8.2.1 68

7.

01

None

None

Satisfaction 8. 01 Quality Policy and Objectives None None 5.3, 5.4.1 -

reached and found to be satisfactory Quality policy and objectives have been displayed and available to public and well understood by all employees

Operations Detail For The Batch Of 1000 Manufacturing Pieces

S.No. 1 2 3 4 5 6 7 8 9

Process

No. Of Workers 3 5 4 5 4 5 5 4 3

No. of Pieces per worker 330 200 250 200 250 200 200 250 330

Raw Material Casting/Forging/ Stamping Machining/ Grinder Polishing/Lancering Surface Treatment Electroplating/Lacquering Final Checking Packing as per Specifications OK Products

Time taken to complete process 25 min 60 min 35 min 30 min 50 min 70 min 50 min 40 min 60 min

On 19th June: I reduce one worker from Polishing and one worker from Electroplating for the whole day. And adjust them to casting and checking. Then it will reduce the quality as per specification. On 20th June I increase one worker to Polishing and one worker to electroplating department for the whole day. And reduce workers from checking and casting. Then it will increase the quality with respect to time and cost. 69

Manufacturing Products

70

71

CHAPTER 2 LITRETURE REVIEW

Literature Review 1

72

Title Total Quality Management Author Dr. K.C. ARORA Sources S.K. Kataria & Sons Publications Document Type Article Topic Involved Total Quality Management Process Management Quality Control

Abstract Total Quality Management (TQM) is a never ending process of improving work processes. It operates according to the premise that organizations cannot rest comfortably without continuously improving whatever is being done. There has to be a culture of continuous improvement and everyone in the organization must strive towards it. This could be accomplished only through continuous training. The present study seeks to examine the role of training as well as measuring its effectiveness for successful implementation of TQM. For this purpose, data have been retrieved from a public sector enterprise manufacturing crude steel in India. The findings of the study are based purely on primary survey. Pearson's Correlation Coefficient with their significance levels have been used to measure the effectiveness of TQM training and the correlation between TQM training and selected factors. The authors have found that training creates awareness, builds employees commitment to quality policy and strategy, facilitates teamwork, enhances performance standards, and bolsters the skills and abilities of employees. However, the organisation needs to focus more upon improving communication competencies, multiple skill development and customer
73

value training. Successful TQM training in the organisation needs more budgetary allocation and commitment, support and enthusiasm of the top management.

Literature Review 2 Title Industrial Engineering & Operations Management Authors S.K. Sharma Savita Sharma Sources S.Chand Publications Document Type Article Topic Involved

Waste Management Six Sigma Production Control

Abstract Describes the design, development and testing of a quantitative model that can be used to indicate the effectiveness of a total quality management (TQM) program in manufacturing organizations. Requirements for an effective implementation of Six sigma or leanmanufacturing systems; Commonality between the requirements and concerns of both TQM and Six sigma; Way for TQM to be effective.

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CHAPTER 3

RESARCH METHODOLOGY

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INTRODUCTION TO RESARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. Scientifically, it is a scientific search for pertinent information on a specific topic. The Encyclopedia of Social Sciences defines research as under: Research is the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theories or in practice of an art.

OBJECTIVES OF RESEARCH Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The purpose of research is to discover answer to question through the application of scientific procedures. The main aim of research is to find out the hidden truth, which has not been discovered yet. Though each research study has its own specific purpose, we may think of research objectives as falling not a number of following broad groupings : To gain familiarity with a phenomenon or to achieve new insights into it . To portray accurately the characteristics of a particular individual, situation or a group (Descriptive research studies) To determine the frequency with which something occurs

RESEARCH METHODOLOGY is a systematic approach of identifying the problem of collecting information and analyzing them and provides alternative solution.

AIM OF THE PROJECT RESEARCH Research is concerned with the systematic and objective collection, analysis and evaluation of information about QUALITY MANAGEMENT SYSTEM, PROCESS & TOTAL QUALITY CONTROL in order to help management make effective decisions. The aspect is
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identified and explaining each step required to conduct the research in a successful manner.

OBJECTIVES OF PROJECT RESEARCH Total Quality Management is one of those basic fundamental training in SADANI OVERSEAS which are being imparted on a regular basis. Rather it is one of the training which are foundational to Sadani philosophy and work culture. This training was being imparted without evaluating its benefits until the recent recession which hit globally. At this point organization started contemplating over utility or benefit of the trainings being given and hence decided to start evaluating training and business result out of it. Other benefit of this process is that it reinforce learning by the participant.

POINTS

To evaluate the benefits of TQM training in Sadani Overseas. To have improved learning by the trainers. To maintain TQM (TOTAL QUALITY MANAGEMENT) in Sadani Overseas.

PERIOD OF PROJECT RESEARCH The time period was two months for the study, starting from 16th May 2011 to 16th July 2011.

DATA USED IN PROJECT RESEARCH The type of data collected comprises of Primary data and Secondary data. Primary data is the first hand data collected from the employees. It was collected through direct observation. Secondary data for the study has been compiled from the reports and official publication of the organization, which have been helped in getting an insight of the present scenario existing in the operation of the company.

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CHAPTER 4 DATA COLLECTION

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PRIMARY DATA:

Primary data is collected during the course of doing projects in an experimental research but in case we do research of the descriptive type then we can obtain primary data either through observation or direct communication with the respondents in one form or another or through personal interviews . Primary Data collection in my project is done through direct communication for about 15 people who appeared or you can say that selected for TQM.

SECONDARY DATA: Secondary data is collected to study the background of the research and it greatly helps in identifying the target. Secondary Data in my project is total from SADANI documents and faculty guide and my industry guide given information.

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CHAPTER 5 SUGGETIONS, RECOMMENDATIONS AND CONCLUSIONS

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CONCLUSION & RECOMMENDATION

Total Quality Management Training should be imparted in early months of an associate joining the company. Sooner it is better it is. Stated Purpose should be made clear to a participant well before the commencement of the training. A participant should be clear about what he is there for and what is expected out of him post training Participant should be made to explicitly state what they feel about training. For this we can ask for anonymous feedback and can also go for focussed group discussion could be useful. There should be consistent and through follow up of the participant post training to ensure that the objective of the training were achieved and data obtained is fully validated.

SUGGESTIONS

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Application of theory into practice requires lot of customization. This in turn requires a thorough understanding of Organizations Context and Culture. Hence it becomes necessary to define ones objective very clearly rather than chasing after a moving target. Only purpose of business is the Bottom line i.e. Return on Investment. Even when it comes to Welfare of the employees or associate or their learning, company will look at the bigger picture of whether its motive of investment is achieved or not. Operations Department has now become the integral part of the business. Its no more an abstract. OR department is equally responsible to deliver the results. If one has to calculate change in efficiency or growth in productivity of an associate, he/she has to be monitored over a period of time and also through various checks to assure the validity and reliability.

APPENDICES

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In todays scenario, Human capital is acknowledged as one of the most potent sources in contributing directly and significantly in the growth of any organization. This project attempts to explore the most effective QUALITY MANAGEMENT SYSTEM,
PROCESS AND TOTAL QUALITY CONTROL IN AN EXPORT ORIENTED ORGANIZATION

for smooth sailing of an organization. It was a research conducted to get the feedback of the associates from the company about the existing TQM training system followed in the organization. The main research objective was to understand the relevance of wide variety of methods and techniques that can be explored towards understanding the relevance of TQM. In todays competitive world every organization is geared towards maximum return with minimum investment. Human Resource Management plays a vital role towards planning & controlling cost effective methods support. This is widely affected by planning and implementing TOTAL QUALITY MANAGEMENT which is the paramount part of this project. Channelizing human energies in a predetermined desirable direction are not possible unless good trainings are maintained in the organization involved in business development. Concept of employee understanding about TQM was also understood through the project study. The ways adopted by companies to manage TOTAL QUALITY and then by giving TQM training to the employees and reducing employee mistakes to maintain TQM were studied through the project.

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