akash report.doc

A

Project Report

On

QUALITY MANAGEMENT SYSTEM

ON VARDHAMAN WATER TANK

___________________________________________

Under the Supervision of

MS. Vandana Sral

Submitted By

(Akash Srivastab)

1308017708

in partial fulfillment of the requirement

for the award of the degree

Of

Master of Business Administration In Operation

Able to define

Unable to define

2015

BONAFIDE CERTIFICATE

Certified that this project report entitled QUALITY MANAGEMENT SYSTEM ON VARDHAMAN WATER TANK is the bona-fide work of Mr. Akash Srivastab for the award of Master of Business Administration from Sikkim Manipal University carried out under my supervision.

SIGNATURE SIGNATURE

HEAD OF THE DEPARTMENT FACULTY IN CHARGE

DECLARATION

I, Akash Srivastab student of Master of Bussiness Administration (MBA) year 2013-2015 from Sikkim Manipal University declare that this project is our original work and it has not previously formed the basis of award of any degree or similar other title.

Akash Srivastab

Roll No. : 1308017708

MBA 4th

Sikkim Manipal University

ACKNOWLEDGEMENT

If words can be considered as a symbol of approval and token of acknowledgement then let the words play the heralding role of expressing my gratitude acknowledgement.

At the very outset, I take the privilege to convey my gratitude to those people whose cooperation, suggestion and heartfelt support helped me to accomplish the project report works successfully.

I acknowledge my sincere gratitude to my Centre Head _______________ for permitting me to do the study.

My sincere thanks to my faculty guide Ms. Vandana sral for his careful supervision, valuable guidance and constant encouragement right from the inception to the successful completion of my summer project.

I would like to express my sincere thanks to all the faculty members of the Deptt. Of Business Administration for their support.

Last but not the least. I express my heartfelt thanks to all other staff member of Vardhaman, my parents and friends for the timely help and support they have rendered in bringing my study, so its relevance in a faithful manner.

PREFACE

Projects are an indispensable part of any kind of formal education. They help us to have a practical exposure as well as better outlook of the subject, which we are studying. In a professional course like M.B.A, the students are equipped with strong theoretical knowledge about the business operations and the time-tested methods of running a successful business. To make this theoretical knowledge stronger, the students are assigned certain projects in various organizations to get an idea of practical working styles.

I was assigned to work in Vardhaman. The topic of study was Quality Management System in Vardhaman water tank. In order to make the data and findings easily understandable, efforts have been made to present the information in a simplified, lucid and organized manner. It gives me immense practical exposure to the practical working patterns and the environment. I will be satisfied if the organization gets benefits from the study and the findings.

CONTENTS

CHAPTER NO. TITLE

1. Executive Summary:

2. An overview of the organization:

introduction

History of the organization

3. Project Overview:

Introduction to the Study

Objectives the Study

Scope of the Study

Research Methodology

Limitation of the Study

Data Analysis

Recommendation

Conclusion

4.Others:

Questionnaire

Bibliography

References

Glossary

Chapter-1

EXECUTIVE SUMMARY

Project Title : Total quality management system in Vardhaman.

Duration of study : 3rd April to 4th May 2015.

Place of study : Vardhaman,

Name of the company : Vardhaman Industries.

Major project :To study the Quality Management System in Vardhaman.

Methodology : A structured questionnaire was developed and Administered among the selected sample for effective analysis.

Major finding : Quality Management system have been contributing

to the overall growth of Vardhaman through cost reduction,

waste elimination, process improvement and greater

productivity. There seems to be ignorance among the support staffs and casual workers to some extent.

Major Recommendations : To maintain quality maintaining proper parameter

during process operation is essential. Also for

production of quality tank, if the raw material in

plastic it may give law cost and with minimum errors.

Chapter-2

An overview of the organization

Introduction:

Established in the year 1999, we, Vardhaman Polymers, Solapur are one of the leading manufacturers and suppliers of superior quality PVC pipes, rigid PVC pipes & HDPE pipes. The collection is globally accepted for its features such as rugged construction, corrosion resistance, low maintenance and leak proof. Hence, we are honored as an ISO 9001:2000 certified company.Under the insightful guidance of the owner Mr. Shirish Chankeshwara, we have carved out a niche for ourselves in the industry for offering quality PVC pipes and HDPE pipes. Moreover, we are duly supported by dynamic, energetic and experienced team.Further, we are backed by a strong dealer network of 200 dealers around Karnataka, Andhra Pradesh &.Maharashtra. It assists in prompt delivery of the ordered range to various clients spread across India within agreed time.

History :

The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the "Manchester of India". Within the precincts of this city is located the Corporate headquarters of the Vardhman Group, a household name in Northern India. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one of the largest Textile Business houses in India.

At its inception, Vardhaman had an installed capacity of 14,000 spindles, today; its capacity has increased multifold to over 8 lacs spindles. In 1982 the Group entered the sewing thread market in the country which was a forward integration of the business. Today Vardhaman Threads is the second largest producer of sewing thread in India. In 1990, it undertook yet another diversification - this time into the weaving business. The grey fabric weaving unit at Baddi (HP), commissioned in 1990 with a capacity of 20,000 meters per day, has already made its mark as a quality producer of Grey poplin, sheeting, shirting in the domestic as well as foreign market. This was followed by entry into fabric processing by setting up Auro Textiles at Baddi and Vardhaman Fabric at Budhni,Madhya Pradesh. Today the group has 900 shuttleless looms and has processing capacity of 90mn meters fabrics/annum.

In the year 1999 the Group has added yet another feather to its cap with the setting up of Vardhman Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in Acrylic Fibre production undertaken with Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong Kong, Korea, UK and EU in addition to the domestic market. Adherence to systems and a true dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which is the first in Textile industry in India and yet another laurel to its credit.

Manufacturing Unit :

We possess state-of-the-art manufacturing unit which is regularly upgrade to enhance the production capacity. Further, it has scope to enhance its area with increase in demand of our vast range by various clients. The unit is installed with sophisticated and Fully Automatic modern ExtrusionMachines such as Koliste, Windsor including:

Water Tank

Haul-off

Automatic cutting

Electro polishing

These machines are regularly checked, serviced and lubricated for its smooth functioning. If required, these can be replaced by latest and new one. These machines are handled by our proficient team of engineers.

Our manufacturing unit is duly supported by an in-house design unit assisting in development of latest designed pipes.

Vision: To be globally recognized as a Leading Supplier of Quality Fabrics"

Mission:

Our mission is to break into the golden circle of the globally acclaimed Information Technology Services Companies by achieving sustainable and profitable growth through delivery of exceptional IT services to customers by our outstanding people who take pride in the quality of our services, our business ethics, and our passion to exceed customers expectations

DIFFERENT TYPES OF PRODUCTS BY VARDHAMAN

Ontrack is an ISO 9001:2000 Certified Company with Total Customer Satisfaction as its quality policy objective. The emphasis is on basic process discipline enabling timely delivery, and quality assured deliverables. Well-defined and documented quality standards and procedures have been laid down for project management that helps monitor projects on a real-time basis and ensure that the customer is never out of touch.

Quality is our forte and can be found in every business activity of our company. We follow stringent quality measures at every stage of production right from procurement of raw material. We have been conferred with ISI approved: 4985:2000; CM/L: 7227366 and 4984:1995; CM/L: 7497294. Further, our collection is also developed in compliance with ISO 9001:2000 certification and BIS (Bureau Of Indian Standard).

Under the guidance of quality controllers, we do quality check at all stages of production. The finished array is also quality tested on various parameters in accordance with international quality standards. These parameters include:

Dimensional accuracy

Leakage

Corrosion resistance

Quality whether of the people, product or of the services rendered, is of utmost importance improve employee productivity and overall general development. Mandatory training courses on programming practices and software quality assurance have been identified for Ontrack's human resource, the actual practitioners of quality processes. Vardhman is among the few fully integrated fabric suppliers in the country. An exquisite range of fabrics for shirting and trousers enables Vardhman to offer fashion solutions to the leading clothing manufactures in the world. The state-of-the-art manufacturing facilities having 900 shuttleless looms and producing 90 mn meters per annum processed fabric are located in North and Central India, which cater to the highly customized fabric needs of the buyers. An integrated fabric supply chain extending from raw materials to yarns and from weaving to processing provides the winning edge to the customers

STEEL - Overview

Vardhman Special Steel is a niche player in the special and alloy steel market of India. With installed capacity of 1,00,000 MT per annum, Vardhman offers alloy steel made with contemporary technologies like electro-magnetic stirrers, vacuum degasification, auto mould level controlled and auto controlled cooling etc. With continuous research and development efforts, Vardhman Special Steel meets the stringent quality requirements of commercial vehicles, tractors, cars, two wheelers, defence applications, railway components and other engineering products.

Engineered for the futureVardhman Special Steels incorporates some of the most advanced manufacturing facilities with equally reliable support facilities. The plant has well conceived layout plan with modern material handling facilities-all designed for economic processing of materials and human skills. Vardhman's ability to adopt changes in technology is evident in its extensive use of automation and contemporary concepts.

FIBER - Overview

The acrylic fiber of Vardhman is acclaimed for a wide variety of textile applications. The modern manufacturing plant based on renowned Japan Exlan Wet Spun technology produces 18000 MT per annum acrylic fiber at Gujarat (Western India). The fiber marketed under the brand name VARLAN has achieved high level of recognition in the Indian market because of super soft touch and silky appearance.

Product FeaturesSuperb soft touch & silky appearance; resilence; excellent dye -ability; brilliant shades, high bulk yarn products incorporating shrinkable fibres; low pill formation; better crease recovery; high resistance to chemicals, light, weathering and midew make VARLAN a preferred fibre in knitted, woven and other applications.

Product Range

Acrylic Bright & Semi-dull Non shrinkable fibre in 1.2,1.5,2,3,5,7,10,15 deniers in a wide range of cut lenghts.

Acrylic Bright & Semi-dull Shrinkable fibre with different shrinage levels in 2,3,5 deniers in a wide range of cut lengths

Acrylic Tow endless Bright & Semi dull in 2,3 denier.

Specialty acrylic fibres suitable for Open end spinning; Soft handle, Water absorbent applications etc.

Vardhman Acrylics LtdVardhman Group ventured into the manufacture of Acrylic Fiber/Tow in 1999. The joint venture, Vardhman Acrylics Ltd. (VAL) was set up together with two leading Japanese business houses namely Japan Exlan Co. Ltd., a part of Toyobo Group of Japan and Marubeni Corporation Japan. The company has set up a 18000 TPA Acrylic Staple Fibre and Tow production plant at Jhagadia, Distt. Bharuch in the state of Gujarat, India. The world class wet spun technology for the manufacture of Acrylic fiber / Tow has been sourced from Japan Exlan Co. Ltd., Japan. It is a state of the art, highly automated production facility making it amongst the most advanced plants of its' type in the world. VAL's products are marketed under the brand name "VARLAN".

FACILITIES

Yarn Manufacturing Units

Location

Spindles

Vardhman Spinning and General Mills

Ludhiana (Punjab)

64572

Vardhman Spinning Mills

Baddi (Himachal Pradesh)

36288

Auro Spinning Mills


77792

Arisht Spinning Mills


82128

VMT Spinning Company Limited


45120

Arihant Spinning Mills

Malerkotla (Punjab)

113804

Anant Spinning Mills

Mandideep (Madhya Pradesh)

74496

Vardhman yarns

Satlapur (Madhya Pradesh)

170528

Vardhman Fabrics (Yarns Division)

Bhudhni(Madhya Pradesh)

60000

Vardhman Yarns and Threads Ltd. Spinning

Hoshiarpur (Punjab)

60352

Spinning-Total

785080

Rotors

Auro Spinning


1248

Vardhman Fabrics


2160

Total

3408

Yarn & Fibre Dyeing Units

Location

Production Capacity

Vardhman Spinning and General Mills, Dye House

Ludhiana (Punjab)

20 Tonnes per day

Auro Dyeing


35 Tonnes per day

Fibre Dyeing

15 Tonnes per day

Yarn Dyeing

20 Tonnes per day

Mahavir Mercerizing Unit

Hoshiarpur (Punjab)

15 Tonnes per day

Total

65 Tonnes per day

Fabric - Weaving Units

Location

Production Capacity

Auro Weaving Mills


264 looms

Mahavir Spinning Mills


236 looms

Vardhman Fabrics


400 looms

Total

900 looms

Fabric Processing Units ( Finished Fabric)

Location

Production Capacity

Auro Textile


50 million meters per anuum

Vardhman Fabrics



Total


Sewing Thread Business

Location

Production Capacity

Vardhman Yarns and Threads Limited (Unit -I)

Hoshiarpur (Punjab)

21 MT per day

Vardhman Yarns and Threads Limited (Unit -II)

Ludhiana (Punjab)

7 MT per day

Vardhman Yarns and Threads Limited (Unit -III)

Perundrai (Tamil Nadu)

3 MT per day

Vardhman Yarns and Threads Limited (Unit -IV)


2 MT per day

Total

33 MT per day

Steel Business

Location

Production Capacity

Steel Unit-Vardhman Special Steels

Ludhiana (Punjab)

100000 MT per annum

Acrylic Business

Location

Production Capacity

Fibre Manufacturing Unit-Vardhman Acrylic Ltd.

Jhagaria (Gujarat)

18000 MT per annum

Australia

Portugal

South Africa

Iran

Tunisia

Morocco

Brazil

Turkey

Bangladesh

Russia

Belgium

Saudi Arabia

China

Singapore

Canada

Sri Lanka

Colombia

Spain

Egypt

Switzerland

Germany

Syria

Greece

Thailand

Hongkong

U.K.

Indonesia

Ukraine

Israel

Uruguay

Italy

USA

Japan

Venezuela

Korea

Vietnam

Lebanon

Newzealand

Malasiya

Mauritius

Quality Philosophy

In order to achieve total customer satisfaction it is important to meet their expectations in terms of quality and prompt, professional response to their needs. It is this belief that makes Vardhman fully geared to provide pre and post sales technical support to it's customers including assistance in material selection. To ensure the right quality, Vardhman Special Steels has been quick to incorporate state-of-the-art technology in its quality control programme. At first, the process parameters and conditions are developed. Later, these are constantly monitored throughout the entire manufacturing process. The quality parameters are repeated within a narrow range from heat to heat. The final produce is then inspected and tested to ensure compliance with the customer's requirement. Appropriate statistical quality control systems and the latest testing facilities are the hallmarks of Vardhman's Quality Assurance Department.

Inspection & Testing Facilities

1. Spectrometer Atocomp 7000-Jarrell Ash,ARL 4460-Themo Electron S.A.

9. Image Analyser System.

2. Mobile Spectrometers.

10. Ultrasonic Flaw Detecors

3.Wet Analytical Laboratory.

11. Magna Flux Machine

4. Oxygen & Nitrogen determinator-LECO.

12. Universal Testing Machine.

5. Carbon & Sulphur Determinator-LECO.

13. Impact Testing Machine .

6. Active O2 determinator in Liquid Steel-CELOX.

14. Jominy Hardenbility Testing Facility.

7. Total Hydrogen determinator in Liquid Steel-HYDRIS.

15. Metascope.

8. Metallurgical Microscope with photography arrangements-CARL ZEISS.

16. Portable Alloy Analyser (XRF).

Quality Offer

GENERAL REQUIREMENT AND QUALITY PARAMETERS - HOT ROLLED BARS

S.NO

GENERAL REQUIREMENT & QUALITY

V.S.S. OFFER

PARAMETERS

1

STEEL MELTING AND CASTING

PROCESS ROUTE :

PROCESS

Electric Arc Furnace -- Ladle Refining Furnace -- Vacuum

Degassing -- Continuous Casting (AMLC & EMS) --

Hot Rolling -- Annealing (Optional) .

CONTINUOUSLY CAST ELECTRO MAGNETICALLY

STIRRED BY MOULD " EMS " & LIQUID LEVEL IN MOULD

CONTROLLED BY AMLC .

2

REDUCTION RATIO

UPTO 80 RCS / 90 MM DIAMETER : 1 : 6 MINIMUM

> 80 RCS / 90 MM DIAMETER & : 1 : 4 MINIMUM

< = 100 RCS / 110 MM DIAMETER

3

CHEMICAL COMPOSITION

AS PER BIS / DIN / IS / BS / ASTM / JIS SPEC'S

AS SPECIFIED BY CUSTOMER

*

TRAMP ELEMENTS :

AS SPECIFIED IN THE RELEVANT STANDARD

4

LENGTH

BARS SHALL BE IN RANDOM / STD. LENGTHS OF

4 TO 6 MTRS UPTO 70 MM DIA. & 63 MM RCS AND

3 TO 6 MTRS > 70 MM DIA. & 63 MM RCS

WITH MAXIMUM 10% SHORTS DOWN TO 1.0 MTR. ( BY WEIGHT).

BARS CAN ALSO BE SUPPLIED IN MULTIPLE LENGTH OR IN FIX

LENGTH OR UNIT LENGTH AS SPECIFIED BY CUSTOMER .

5

SURFACE DEFECTS

MAXIMUM 1.0% OF SECTION DIMENSION OR

(LIKE SEAMS, SCRATCHES, ROLL MARK, LAPS

0.5 MM WHICHEVER IS LESS IN CASE OF

FOLDS ETC.)

HOT ROLLED OR ANNEALED BARS .

REFERENCE : IS 13352 : 1992

6

DECARBURIZATION

TOTAL ( FULL + PARTIAL ) < = 1.0 % OF SECTION OR 0.5 MM

WHICHEVER IS LESSER , IN CASE OF HOT ROLLED BARS.


TOTAL ( FULL + PARTIAL ) < = 1.5 % OF SECTION

IN CASE OF ANNEALED BARS .

AS PER CUSTOMER 'S REQUIREMENT & MUTUALLY AGREED

AT THE TIME OF ORDER IN CASE OF ANNEALED CONDITION.

7

INTERNAL SOUNDNESS

UPTO 80 RCS / 90 MM DIAMETER : C2 R1 S1 MAX.

REFERENCE : ASTM E-381 :1994

> 80 RCS / 90 MM DIAMETER & : C2 R2 S2 MAX.

< = 100 RCS / 100 MM DIAMETER

8

INCLUSIONS RATING (AS PER IS - 4163)

NORMAL STEEL (SULPHER 0.035 % , SEMI

FREE CUTTING STEEL AND FREE CUTTING STEELS

" A " TYPE INCLUSIONS COULD BE HIGHER THAN ABOVE.

9

GRAIN SIZE

REFERENCE : IS 4748 OR ASTM E-112

ASTM 5 OR FINER FOR "AL" KILLED STEELS

10

JOMINY HARDENABILITY

AS SPECIFIED BY CUSTOMER AND MUTUALLY AGREED

UPON AT THE TIME OF ORDER


TESTING ERROR FROM ONE LABORATORY TO ANOTHER


MAY BE + / - 1.5 HRC

11

DIMENSIONAL TOLERANCE / OVALITY .

IS 3739 : GRADE I .

12

STRAIGHTNESS

6 mm / Mtr max. -

IN HOT ROLLED BARS.

3 mm / Mtr max. -

IN MACHINE STRAIGHTENED

( UPTO 70 MM DIAMETER )

13

MACRO INCLUSIONS

THERE MAY BE FINE INDICATIONS - 2 NO'S MAXIMUM

OF CUMULATIVE LENGTH 10 MM IN 1 / 10 SAMPLES

CHECKED ON MAGNETIC PARTICLE TESTING MACHINE .


14

GAS CONTENT

CASE CARBURIZING STEEL

OXYGEN = 20 PPM MAX.

NITROGEN = 100 PPM MAX.

HYDROGEN = 1.5 PPM MAX.

THE GAS CONTENTS CAN ACHIEVE EVEN ON LOWER SIDE AS

POSSIBLE WITH MUTUAL AGREEMENT WITH CUSTOMER AT THE

TIME OF ORDER

THROUGH HARDENING STEELS / BEARING

OXYGEN = 15 PPM MAX.

STEELS .

NITROGEN = 100 PPM MAX.

HYDROGEN = 1.5 PPM MAX.

THE GAS CONTENTS CAN ACHIEVE EVEN ON LOWER SIDE AS

POSSIBLE WITH MUTUAL AGREEMENT WITH CUSTOMER AT THE

TIME OF ORDER

15

PACKAGING & BUNDLING

HOT ROLLED BARS :

APPROX. WEIGHT OF BUNDLE - 2.0 MT

STEEL STRAP OR WIRE BINDING AT TWO PLACES

ON EACH BUNDLE

TAG ON EACH BUNDLE INDICATING HEAT NO.

GRADE , SECTION , NO. OF BARS , HEAT CODE .

GENERAL REQUIREMENT AND QUALITY PARAMETERS - BRIGHT BARS

PARAMETERS

1

SUPPLY CONDITION

*

HOT ROLLED -- ANNEALED (OPTIONAL) -- COLD DRAWN

*

HOT ROLLED -- ANNEALED (OPTIONAL) -- COLD DRAWN --

CENTRELESS GROUND .

*

HOT ROLLED -- ANNEALED (OPTIONAL) -- PEELED .

*

HOT ROLLED -- ANNEALED (OPTIONAL) -- PEELED --

CENTRELESS GROUND .

SUPPLY CONDITION SHALL BE AS SPECIFIED BY

CUSTOMER .

2

SURFACE DEFECTS

MAXIMUM 0.75% OF DIAMETER OR

(LIKE SEAMS, SCRATCHES, ROLL MARK, LAPS

0.3 MM WHICHEVER IS HIGHER IN CASE OF

FOLDS ETC.)

DRAWN BARS


DRAWN & GROUND BARS - MAXIMUM 0.5 % OF THE DIAMETER

OR 0.20 MM WHICH EVER IS HIGHER .

PEELED / PEELED & GROUND BARS SHALL HAVE ZERO

SURFACE DEFECTS

FOR PEELED & GROUND BARS SURFACE ROUGHNESS LEVEL

SHALL BE Ra - 2.5 MICRONS MAX.

3

DECARBURIZATION

TOTAL ( FULL + PARTIAL ) < = 0.75 % OF DIAMETER

IN CASE OF HOT ROLLED & DRAWN CONDITION .


DECARBURIASATION - 1 % IN CASE OF ANNEALED &

DRAWN CONDITION .

DECARBURIASATION - NIL IN CASE OF PEELED

OR PEELED & GROUND CONDITION .

AS PER CUSTOMER 'S REQUIREMENT MUTUALLY AGREED

AT THE TIME OF ORDER IN CASE OF ANNEALED CONDITION.

4

DIMENSIONAL TOLERANCE :

(STANDARD)

*

DRAWN BARS

: h 11

*

DRAWN AND GROUND BARS

: h10

*

PEELED BARS

: h 11

*

PEELED AND GROUND BARS

: h10

5

STRAIGHTNESS

1.0 mm / Mtr max. -

6

PACKAGING & BUNDLING

COLD FINISHED BARS :

APPROX. WEIGHT OF BUNDLE - 1.0 MT

RUST PREVENTIVE OIL COATING ON 100 % BARS

IF REQUIRED FOR END APPLICATION .

IN CASE IF MPI TESTED BARS THE RESIDUAL MAGNTIZATION

LEVEL SHALL BE 0.3 GAUSS MAXIMUM.

EACH BAR WILL HAVE ONE END BANDSAW CUT & WILL

BE PASTED WITH STICKER SHOWING HNO, GRADE, SECTION .

PACKAGING OF BARS SHALL BE AS SPECIFIED BY CUSTOMER AND

MUTUALLY AGREED AT THE TIME OF ORDER .

TAG ON EACH BUNDLE INDICATING HEAT NO.

GRADE , SECTION , NO. OF BARS ,

Vaccum Degassing

Tank Vaccum Degassing System from VAI - TECHNOMETAL GERMANY.

Electronite Hydris for measuring Hydrogen in Liquid Metal.

30 MT capacity and vacuum levels lower than 1.0 millibar.

10 T/hr steam Boiler to feed the ejector system supplied by TECHNOMETAL GERMANY.

4 wire feeding system for trimming alloys.

Bloom Caster

9/16 Meters, two strands Continuous Casting Machine - Concast Standard AG design equipped with IN MOULD ELECTRO MAGNETIC STIRRER (EMS) from Danielli Rotelec, France.

Fully automatic and computerized control of casting parameters.

Fully protected liquid metal stream while casting from ladle to tundish followed by closed casting using submerged entry nozzle from tundish to mould.

Automatic mould level indicator.Cast Sizes : 125 mm sq., 160 mm sq., 200 mm sq. (options)

Bloom Conditioning Facilities

Auto Billet Grinding Machine

A battery of swing frame grinders for surface dressing

Rolling Mills

3 high, 590 mm., 6 stand mechanized modern rolling mill.

Heat Treatment and Finishing

Bogie hearth furnace for annealing with all temperature controls

Air ballast normalizing

Bar straightening machines

Full-length pickling facilities

Mechanised inspection and conditioning stations

Spherodizing furnace (project in hand)

Bar Peeling & Centreless Grinding

Long bar straighteners and polisher

Bar Peeling

Cold Drawing

Long bar centreless grinding machine

High speed double column band saw for cut length supply

Full length bar Magnetic Particle Inspection

Vaccum Degassing

Tank Vaccum Degassing System from VAI - TECHNOMETAL GERMANY.

Electronite Hydris for measuring Hydrogen in Liquid Metal.

30 MT capacity and vacuum levels lower than 1.0 millibar.

10 T/hr steam Boiler to feed the ejector system supplied by TECHNOMETAL GERMANY.

4 wire feeding system for trimming alloys.

Bloom Caster

9/16 Meters, two strands Continuous Casting Machine - Concast Standard AG design equipped with IN MOULD ELECTRO MAGNETIC STIRRER (EMS) from Danielli Rotelec, France.

Fully automatic and computerized control of casting parameters.

Fully protected liquid metal stream while casting from ladle to tundish followed by closed casting using submerged entry nozzle from tundish to mould.

Automatic mould level indicator.Cast Sizes : 125 mm sq., 160 mm sq., 200 mm sq. (options)

Bloom Conditioning Facilities

Auto Billet Grinding Machine

A battery of swing frame grinders for surface dressing

Rolling Mills

3 high, 590 mm., 6 stand mechanized modern rolling mill.

Heat Treatment and Finishing

Bogie hearth furnace for annealing with all temperature controls

Air ballast normalizing

Bar straightening machines

Full-length pickling facilities

Mechanised inspection and conditioning stations

Spherodizing furnace (project in hand)

Bar Peeling & Centreless Grinding

Long bar straighteners and polisher

Bar Peeling

Cold Drawing

Long bar centreless grinding machine

High speed double column band saw for cut length supply

Full length bar Magnetic Particle Inspection

OVERVIEW

GlobalizationVardhman ventured in to the global market in 1986 with an export value of one core to reach exports of $150 mn in FY 2008-09.

Little wonder then, that Vardhman, today, exports 40% of its yarn production to more than 25 countries and has a strong presence in markets like the EEC, USA, Canada, China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East. Vardhman has a share of more than 6% in total Yarn exports from India.

Its trusted, tested and reliable workforce, coupled with the latest technology, quality consciousness, customer oriented services and strong logistics has given Vardhman an edge over its competitors and in the worlds most quality conscious and price sensitive markets. Thereby making Vardhman a truly international organisation in terms of sourcing from and catering to the world market.

We export to the world!

Some of our prominent markets are

The processes in place at Ontrack cover the following activities:Requirement AnalysisProject ManagementRisk ManagementClient Relationship ManagementQuality AssuranceConfiguration Management

Quality Assurance:

Define QA Plan and Review ProcessDefine and Measure Quality MetricsConduct Reviews based on pre defined Checklists and Review FormsTesting Correctness, Completeness and Traceability

Methodology:

The methodology used consists of stages, which broadly are the following:Systems StudyPlanning and Estimation - Project Plan, Test Plan, Configuration Management Plan, Risk Management Plan and Training Plans.Project Kick Off and Start AuditRequirements Analysis High Level Design - DFDs, ERDs, Use Cases, Site Map, Screen ShotsPrototype Low Level Design - Technical Specifications including Class Design,and Database Design, Use Case DiagramsPeriodic Reviews for Compliance and Process ImprovementConstruction (includes Unit Testing) Integration and System TestingPreliminary Acceptance TestingFinal Client Acceptance and SupportProject Completion AuditWe are constantly upgrading our equipment, software and techniques to ensure our technology is on the "cutting edge".

Expectations from the Customers:

The expectations from the customers are usually stated in the tender documents and

subsequently in the purchase order. Any ambiguities are resolved through the Contract Review mechanism established, implemented and maintained as per the ISO 9001 Quality Management System.

Ensuring Customer Satisfaction:

To ensure Total Customer Satisfaction, the following initiatives are taken. Various business processes of the company are defined and managed with the sole objective of meeting and exceeding the explicit and implicit customer expectations. The Strategic Business Unit structure is effectively deployed to clearly identify, understand and ensure total adherence to customer requirements. In the case of export market, the customer requirements are verified by the respective QA agencies of the export house or designated agencies of the country or within the organization. The products are manufactured only after evaluation of all parameters set for bulk production to the satisfaction of the customer. The Quality Management activity based on the ISO 9000 Quality Management System and is usually prevention-oriented. Product quality is assured through Process Control & Stage Inspection and final quality is assured through Final Product Testing. The status of customer satisfaction is measured through two principal interventions:

Customer Satisfaction Survey

Handling Customer Complaints

Complaint Handling System

Customer Satisfaction Survey:

This is carried out by sending structured questionnaires to major customers and eliciting their opinion about the products and services being offered. The data collected are analyzed by the corporate Standards and Quality Assurance Group. The results of these reviews are used to update the systems and procedures, thus institutionalizing continual improvement processes.

Customer Complaint Handling:

A comprehensive and clearly documented system is implemented through out the company to handle complaints more systematically. The number of complaints pending and their age as well as the cycle time for attending to them are continuously monitored and regularly reviewed for speedy redressal of complaints.

Complaint Handling System:

The calls and complaints from the customers are systematically processed for timely response and solution. Complaints are handled to the satisfaction of the customers acknowledgements are taken to act as an input for further improvement of the product or service. The complaint status is reported at regular intervals to the manufacturing units for review and necessary corrective & preventive action.

Organization Chart of HPC-Corporate Level:

Able to define

Unable to define

73%

1st Qtr

2nd Qtr

3rd Qtr

GM

(Marketing)

MD- Managing Director

ED- Executive Director

GM- General Manager

Workings of the various component of paper mill are as follows:

Electrical Department:

Electrical Department basically deals with maintenance and repairs of equipment and machine. The electrical department is basically divided into two parts depending upon the area of work on the plant.

The electrical department consists of 30 officers, Among them both Degree and Diploma holder engineer. In addition, to this there are 60 technicians are there.

Civil Department:

The NPM has well organized civil department which is engaged in modification and rectification of civil construction like road, trains, buildings etc.

The civil department consists of 12 engineers and it is-

1. Civil Plant.

Civil Township looks after the civil construction of township and civil plant looks after the civil construction of plant.

Corporate Citizen

As a responsible corporate citizen, HPC is committed to social uplift and development of the areas near its mills. It has made significant contribution to the development of the local community by encouraging ancillary industries in Greenfield areas. It provides health-care facilities and encourages education, sports and cultural activities in the near-by villages. Vardhaman has also contributed to the construction of roads in the villages near its mills. In many adjacent villages, It provides safe drinking water.

Employment:

Vardhaman has generated direct employment for about 17000 employees and on average more than 10000 indirect workers employees each year. They created employment opportunities both direct and indirect in this region.

Strategy:

The mission is pursued through the following initiatives in the supply chain:

Enunciation of a Quality Policy and defining Quality Objectives in quantifiable and measurable terms, clearly reflecting the commitment to achieve and continuously improve Customer Satisfaction at all levels in the organization.

Produce and deliver such quality of goods and services which are comparable to the best in their class. Any non-conformity at any stage of operations throughout the products life-cycle is seen not merely as a loss to the company but to the entire nation. All employees are encouraged to feel that quality is an article of faith and everybodys responsibility rather than a narrow commercial obligation.

Customer-First policy aimed at transforming the entire company into a customer-focused organization. These objectives are realized by establishing, implementing, maintaining and continually improving an ISO 9001 - based Quality Management

System in all Strategic Business Units in the organization.

Occupational Health and Safety Policy:

Vardhaman is committed to-

Promote and maintain the occupational Health and Safety (OHS) standards to protect its Human Resources (including interested parties and environment from foreseeable work hazards associated with its integrated polp and paper manufacturing process including captive units.

Comply with all the relevant statutory provisions and other requirements in respect of OH & S.

Cotinually improve the OH & S standards through all reasonable effects of risk reduction activities.

SWOT Analysis of the Company:

Strengths:

1. High Capacity of Utilization.

2. Good Level and Productivity of Plan.

3. Well Qualified Technology and Skilled manpower.

4. Good Reputation of Vardhaman Products in North Indian Market.

Weakness:

1. The prices of finished goods are controlled by Government but the prices of Input-Raw materials have been de-controlled.

2. No uniform facilities(No dress Code).

3. Lack of working machines.

Opportunities:

1. Strong marketing network in all over India.

2. 591 across of Land and Infrastructure facilities.

3. Operational efficiency and high capacity utilization.

Threats:

Transportation Problem.

1. Chapter-3

PROJECT OVERVIEW

Introduction to the study:

As apart of fulfillment of MBA curriculum of Sikkim Manipal University .I have taken up the title A Analytic Study on Quality Management System of Vardhaman water tank.

The study is an attempt to understand the quality policies and quality management system of Vardhaman.

Concept of Quality Management System:

A quality management system (QMS) is the means by which quality management practices are made an integral part of an organization. A QMS is not a temporary fad, but a permanent part of an organization with a direct bearing on how the organization conducts its business. QMS is not a vague phrase; it has a very specific meaning: a QMS has a structure, a defined scope, responsibilities, necessary content (in terms of defined processes and supporting QMS documentation), and required resources to accomplish quality planning, quality control, quality assurance, and continuous quality improvement activities. If an organization merely implements a few quality management practices in its operations, it cannot claim to have a quality management system in place.

A QMS is not static, and by definition it must be improved continually in order to enhance organizational effectiveness and efficiency. It may be formally defined as follows. A quality (management) system consists of the organizational structure, procedures, processes, and resources needed to implement quality management.

Quality management is the process for ensuring that all project activities necessary to design, plan and implement a project are effective and efficient with respect to the purpose of the objective and its performance.

Project quality management (QM) is not a separate, independent process that occurs at the end of an activity to measure the level of quality of the output. It is not purchasing the most expensive material or services available on the market. Quality and grade are not the same, grade are characteristics of a material or service such as additional features. A product may be of good quality (no defects) and be of low grade (few or no extra features).

Quality management is a continuous process that starts and ends with the project. It is more about preventing and avoiding than measuring and fixing poor quality outputs. It is part of every project management processes from the moment the project initiates to the final steps in the project closure phase.

QM focuses on improving stakeholders satisfaction through continuous and incremental improvements to processes, including removing unnecessary activities; it achieves that by the continuous improvement of the quality of material and services provided to the beneficiaries. It is not about finding and fixing errors after the fact, quality management is the continuous monitoring and application of quality processes in all aspects of the project.

Definition of Quality:

Quality has been defined as "the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs. International Organization for Standardization (ISO), Quality Management and Quality Assurance (Geneva, Switzerland: ISO Press, 1994) stated and implied quality needs are the inputs used in defining project requirements from the donor and the beneficiaries. It is also defined as the Conformance to requirements or fitness for use; which means that the product or services must meet the intended objectives. Joseph M. Duran , Quality Control Handbook (1951)of the project and have a value to the donor and beneficiaries and that the beneficiaries can use the material or service as it was originally intended. The central focus of quality management is meeting or exceeding stakeholders expectations and conforming to the project design and specifications. The ultimate judge for quality is the beneficiary, and represents how close the project outputs and deliverables come to meeting the beneficiaries requirements and expectations. How a beneficiary defines quality may be completely subjective, but there are many ways to make quality objective; by defining the individual characteristics and determine one or more metrics that can be collected to mirror the characteristic. For instance, one of the features of a quality product may be that it has a minimum amount of errors. This characteristic can be measured by counting errors and defects after the product is used. Quality management is not an event - it is a process, a consistently high quality product or service cannot be produced by a defective process. Quality management is a repetitive cycle of measuring quality, updating processes, measuring, updating processes until the desired quality is achieved.

The Purpose of Management of Quality:

The main principle of project quality management is to ensure the project will meet or exceed stakeholders needs and expectations. The project team must develop a good relationship with key stakeholders, specially the donor and the beneficiaries of the project, to understand what quality means to them. One of the causes for poor project evaluations is the project focuses only in meeting the written requirements for the main outputs and ignores other stakeholder needs and expectations for the project. Quality must be viewed on an equal level with scope, schedule and budget. If a project donor is not satisfied with the quality of how the project is delivering the outcomes, the project team will need to make adjustments to scope, schedule and budget to satisfy the donors needs and expectations. To deliver the project scope on time and on budget is not enough, to achieve stakeholder satisfaction the project must develop a good working relationship with all stakeholders and understand their stated or implied needs.

Quality management consists of four main processes:

Quality Definition

Quality Assurance

Quality Control

Quality Improvements

Quality Definition:

The first step on the quality management is to define quality, the project manager and the team must identify what quality standards will be used in the project, it will look at what the donor, beneficiaries, the organization and other key stakeholders to come up with a good definition of quality. In some instances the organization or the area of specialization of the project (health, water or education) may have some standard definitions of quality that can be used by the project. Identifying quality standards is a key component of quality definition that will help identify the key characteristics that will govern project activities and ensure the beneficiaries and donor will accept the project outcomes. Quality management implies the ability to anticipate situations and prepare actions that will help bring the desired outcomes. The goal is the prevention of defects through the creation of actions that will ensure that the project team understands what is defined as quality.

Quality Characteristics:

All material or services have characteristics that facilitate the identification of its quality. The characteristics are part of the conditions of how the material, equipment and services are able to meet the requirements of the project and are fit for use by the beneficiaries. Quality characteristics relate to the attributes, measures and methods attached to that particular product or service.

Functionality is the degree, by which equipment performs its intended function, this is important especially for clinical equipment, that the operation should be behave as expected.

Performance, its how well a product or service performs the beneficiaries intended use. A water system should be designed to support extreme conditions and require little maintenance to reduce the cost to the community and increase its sustainability.

Reliability, its the ability of the service or product to perform as intended under normal conditions without unacceptable failures. Material used for blood testing should be able to provide the information in a consistent and dependable manner that will help identify critical diseases. The trust of the beneficiaries depend on the quality of the tests.

Relevance, its the characteristic of how a product or service meets the actual needs of the beneficiaries, it should be pertinent, applicable, and appropriate to its intended use or application.

Timeliness, how the product or service is delivered in time to solve the problems when its needed and not after, this is a crucial characteristic for health and emergency relief work.

Suitability, defines the fitness of its use, it appropriateness and correctness, the agriculture equipment must be designed to operate on the soul conditions the beneficiaries will use it on.

Completeness, the quality that the service is complete and includes all the entire scope of services. Training sessions should be complete and include all the material needed to build a desired skill or knowledge

Consistency, services are delivered in the same way for every beneficiary. Clinical tests need to be done using the same procedure for every patient.

Quality characteristics are not limited to the material, equipment or service delivered to the beneficiaries, but also applies to the material, equipment and services the project staff uses to deliver the project outputs. These include the vehicles, computers, various equipment and tools and consulting services the project purchases and uses to carry out its activities.

Quality characteristics must be included in all material, equipment and services the project will purchase, the procurement officers must have a complete description of what is required by the project, otherwise a procurement office may purchase the goods or services based on her or his information of the product.

Quality plan:

Part of defining quality involves developing a quality plan and a quality checklist that will be used during the project implementation phase. This check list will ensure the project team and other actors are

delivering the project outputs according to the quality requirements. Once the project has defined the quality standards and quality characteristics, it will create a project quality plan that describes all the quality definitions and standards relevant to the project, it will highlight the standards that must be followed to comply to regulatory requirements setup by the donor, the organization and external agencies such a the local government and professional organizations (health, nutrition, etc) The quality plan also describes the conditions that the services and materials must posses in order to satisfy the needs and expectations of the project stakeholders, it describes the situations or conditions

that make an output fall below quality standards, this information is used to gain a common understanding among the project team to help them identify what is above and what is below a quality standard.

The quality plan also includes the procedure to ensure that the quality standards are being followed by all project staff. The plan also includes the steps required to monitor and control quality and the approval process to make changes to the quality standards and the quality plan.

Quality Assurance:

Assurance is the activity of providing evidence to create confidence among all stakeholders that the quality-related activities are being performed effectively; and that all planned actions are being done to provide adequate confidence that a product or service will satisfy the stated requirements for quality. Quality Assurance is a process to provide confirmation based on evidence to ensure to the donor, beneficiaries, organization management and other stakeholders that product meet needs, expectations, and other requirements. It assures the existence and effectiveness of process and procedures tools, and safeguards are in place to make sure that the expected levels of quality will be reached to produce quality outputs. Quality assurance occurs during the implementation phase of the project and includes the evaluation of the overall performance of the project on a regular basis to provide confidence that the project will satisfy the quality standards defined by the project. One of the purposes of quality management is to find errors and defects as early in the project as possible. Therefore, a good quality management process will end up taking more effort hours and cost upfront. The goal is to reduce the chances that products or services will be of poor quality after the project has been completed. Quality assurance is done not only to the products and services delivered by the project but also to the process and procedures used to manage the project, that includes the way the project uses the tools, techniques and methodologies to manage scope, schedule, budget and quality. Quality assurance also includes the project meets any legal or regulatory standards.

Quality Audits:

Quality audits are structured reviews of the quality management activities that help identify lessons learned that can improve the performance on current or future project activities. Audits are performed by project staff or consultants with expertise in specific areas. The purpose of quality audit is to review how the project is using its internal processes to produce the products and services it will

deliver to the beneficiaries. Its goal is to find ways to improve the tools, techniques and processes that create the products and services. If problems are detected during the quality audits, corrective action will be necessary to the tools, processes and procedures used to ensure quality is reestablished. Part of the audit may include a review of the project staff understanding of the quality parameters or metrics, and skills expertise and knowledge of the people in charge of producing or delivering the products or services. If corrective actions are needed, these must be approved through the change control processes.

The PDCA Cycle:

The most popular tool used to determine quality assurance is the Shewhart Cycle. This cycle for quality assurance consists of four steps: Plan, Do, Check, and Act. These steps are commonly abbreviated as PDCA.

The four quality assurance steps within the PDCA model stand for

Plan: Establish objectives and processes required to deliver the desired results.

Do: Implement the process developed.

Check: Monitor and evaluate the implemented process by testing the results against

the predetermined objectives.

Act: Apply actions necessary for improvement if the results require changes.

The PDCA is an effective method for monitoring quality assurance because it analyzes existing conditions and methods used to provide the product or service to beneficiaries. The goal is to ensure that excellence is inherent in every component of the process. Quality assurance also helps determine whether the steps used to provide the product or service is appropriate for the time and conditions. In addition, if the PDCA cycle is repeated throughout the lifetime of the project helping improve internal efficiency.

The PDCA cycle is shown below as a never-ending cycle of improvement; this cycle is sometimes referred to as the Shewart/Deming3 cycle since it originated with Shewart and was subsequently applied to management practices by Deming.

Figure: The Shewart/Deming Cycle

Quality assurance demands a degree of detail in order to be fully implemented at every step. Planning, for example, could include investigation into the quality of the raw materials used in manufacturing, the actual assembly, or the inspection processes used. The Checking step could include beneficiary feedback or surveys to determine if beneficiary needs are being met or exceeded and why they are or are not. Acting could mean a total revision in the delivery process in order to correct a technical flaw. The goal to exceed stakeholder expectations in a measurable and accountable process is provided by quality assurance.

Assurance vs. Control:

Quality assurance is often confused with quality control; quality control is done at the end of a process or activity to verify that quality standards have been met. Quality control by itself does not provide quality, although it may identify problems and suggest ways to improving it. In contrast, quality assurance is a systematic approach to obtaining quality standards. Quality assurance is something that must be planned for from the earliest stages of a project, with appropriate measures taken at every

stage. Unfortunately far too many development projects are implemented with no quality assurance plan, and these projects often fail to meet quality expectations of the donor and beneficiaries. To avoid problem the project must be able to demonstrate the consistent compliance with the quality requirements for the project.

Quality Control:

Quality control is the use of techniques and activities that compare actual quality performance with goals and define appropriate action in response to a shortfall. It is the process that monitors specific project results to determine if they comply with relevant standards and identifies different approaches to eliminate the causes for the unsatisfactory performance. The goal of quality control is to improve quality and involves monitoring the project outputs to determine if they meet the quality standards or definitions based on the project stakeholder expectations. Quality control also includes how the project performs in its efforts to manage scope, budget and schedule.

Acceptance: The beneficiaries, the donor or other key project stakeholders accept or reject the product or service delivered.

Acceptance occurs after the beneficiaries or donor has had a change to evaluate the product or service.

Rework; is the action taken to bring the rejected product or service into compliance with the requirements, quality specifications or stakeholder expectations. Rework is expensive that is why the project must make every effort to do a good job in quality planning and quality assurance to avoid the need for rework. Rework and all the costs associated with it may not refundable by the donor and the organization may end up covering those costs.

Adjustments; correct or take the necessary steps to prevent further quality problems or defects based on quality control measurements. Adjustments are identified to the processes that produce the outputs and the decisions that were taken that lead to the defects and errors. Changes are taken to the Change Control processes of the project.

Quality Control Tools:

There are a couple of good tools that can be used to control quality on a project, these are cause and effect diagrams, Pareto charts and control charts:

Cause and Effect Diagram, also known as fishbone diagrams or Ishikawa diagrams (named after Kaoru Ishikawa, a Japanese quality control statistician, who developed the concept in the 1960s, and is considered one of the seven basic tools of quality management) It is named fishbone diagram because of their fish-like appearance, it is an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. The

Ishikawa Diagram is employed by a problem-solving team as a tool for assembling all inputs (as to what are the causes of the problem they're addressing) systematically and graphically, with the inputs usually coming from a brainstorming session. It enables the team to focus on why the problem occurs, and not on the history or symptoms of the problem, or other topics that digress from the intent of the session. It also displays a real-time 'snap-shot' of the

Figure: Fishbone diagram

collective inputs of the team as it is updated. The possible causes are presented at various levels of detail in connected branches, with the level of detail increasing as the branch goes outward, i.e., an outer branch is a cause of the inner branch it is attached to. Thus, the outermost branches usually indicate the root causes of the problem.

Pareto Charts; based on Paretos rule, which states that 80 percent of the problems are often due to 20 percent of the causes. The assumption is that most of the results in any situation are determined by a small number of causes and helps identify the vital few contributors that account for most quality problems. The chart is a form of histogram that orders the data by frequency of occurrence; it shows how many defects were generated by a type of category of identified cause. For example to determine the errors in the collection of beneficiary data the project team identified five causes and for each cause the frequency they contained errors, the data is plotted as shown in the chart below, the bars represent each category and the line the cumulative percentage of the errors, the

chart allows to identify that 80% of the errors could be reduced just by improving the collection of data in two categories instead of focusing efforts to correct all categories.

0

5

10

15

20

25

30

35

40

45

No

Signature

Can'tReadOther

Baseline data errors

Figure: Pareto Chart

Control Charts; is a graphical display of data that illustrates the results of a process over time, the purpose of a control chart is to prevent defects, rather than detect them or reject them, the chart allows the determine whether a process is in control or out of control over specified length of time. Control charts are often used to monitor the production of large quantities of products, but can also be used to monitor the volume and frequency of errors in documents, cost an schedule variances and other items related to project quality management. The figure below illustrates an example of a control chart for the process of controlling the weight of products manufactured by the beneficiaries for sale in international markets. The customer has a limit tolerance for defects; these are the upper and lower control limits in the chart. Random examination of the products reveals data that once charted on the graph identifies the times when the production process created items that were outside the control limits, this helps the project determine actions to help the beneficiaries improve the quality of their work.

1 2 3 4 5 6 7 8 9 10

Time Scale

Figure: Control charts

Control charts can also be used to the project management areas, such as schedule and budget control, to determine whether the costs variances or schedule variances are outside the acceptable limits set by the donor.

Quality Improvement:

It is the systematic approach to the processes of work that looks to remove waste, loss, rework, frustration, etc. in order to make the processes of work more effective, efficient, and appropriate. Quality improvement refers to the application of methods and tools to close the gap between current and expected levels of quality by understanding and addressing system deficiencies and strengths to improve, or in some cases, re-design project processes. A variety of quality improvement approaches exists, ranging from individual performance improvement to redesign of entire project processes. These approaches differ in terms of time, resources, and complexity, but share the same four steps in quality improvement:

Identify what you want to improve; the project using the data found in the quality control process identifies the areas that need improvement.

Analyze the problem or system, the team then investigates the causes for the problem and its implications to the project, the causes may be internal or external to the project.

Develop potential solutions or changes that appear likely to improve the problem or system, the team brainstorms ideas and potential solutions to the problem, taking in consideration its impact to the project schedule and budget. After careful considerations the team decides and chooses the best alternative.

Test and implement the solutions. The team may decide to test the solution on a small scale to verify that it is capable of fixing the problem, it testes for the initial assumptions made about the problem and once it confirms that the solution is a viable alternative, it then proceeds to implement in a full scale the solution.

Cost of Quality:

The cost of quality is the sum of costs a project will spend to prevent poor quality and any other costs incurred as a result of outputs of poor quality. Poor quality is the waste, errors, or failure to meet stakeholder needs and project requirements. The costs of poor quality can be broken down into the three categories of prevention, appraisal, and failure costs:

Prevention costs: These are planned costs an organization incurs to ensure that errors are not made at any stage during the delivery process of that product or service to a beneficiary. Examples of prevention costs include quality planning costs, education and training costs, quality administration staff costs, process control costs, market research costs, field testing costs, and preventive maintenance costs. The cost of preventing mistakes are always much less than the costs of inspection and correction.

Appraisal costs: These include the costs of verifying, checking, or evaluating a product or service during the delivery process. Examples of appraisal costs include receiving or incoming inspection costs, internal production audit costs, test and inspection costs, instrument maintenance costs, process measurement and control costs, supplier evaluation costs, and audit report costs.

Failure costs: A project incurs these costs because the product or service did not meet the requirements and had to be fixed or replaced, or the service had to be repeated.

Leadership:

Joseph M. Juran, one of the leading experts in Quality management said that it is most important that management be quality-minded. In the absence of sincere manifestation of interest at the top, little will happen below 4 What this means is the main cause of quality problems is a lack of leadership. In order to establish and implement effective quality projects, senior management must lead the way. A large percentage of quality problems are associated with management, not technical issues, it is the responsibility of the development organizations senior management to take responsibility for creating, supporting, and promoting quality programs.

Quality problems should be taken as an opportunity for improvement; problems can help identify more fundamental or systemic root causes and help develop ways to improve the process. Unfortunately projects do not have a culture that promotes the identification of problems for the fear that making improvements is an admission that the current way of doing things is flawed or that those responsible are poor performers. Improved performance cannot occur unless the project team feels comfortable that they can speak truthfully and are confident that their suggestions will be taken seriously.

Maturity Models:

Another approach to improve quality is the use of maturity models, which are frameworks for helping organizations and projects improve their processes. The model includes a method for assessing the projects maturity levels as a first step to determine the improvements needed to increase the capacity of the project to deliver the project outputs as promised.

The use of the word "maturity" implies that capabilities must be grown over time in order to produce repeatable success in project management. The Random House College Dictionary defines "maturity" as full development or perfected condition. "Maturity" also indicates understanding or visibility into why success occurs and ways to correct or prevent common problems. "Model" implies change, a progression, or steps in a process.

Project management maturity is the progressive development of an organizations project management approach, methodology, strategy, and decision-making process. The appropriate level of maturity can vary for each organization based on specific goals, strategies, resource capabilities, scope, and needs.

The proper level of maturity to which an organization should strive is determined during a detailed assessment conducted by a professional project management consulting team. The organization has achieved full project management maturity when it has met the requirements and standards for project management effectiveness and it is capable of demonstrating improvements such as on-time project delivery, cost reductions, organizational efficiency, and quality outcomes.

A project quality maturity usually consists of five levels:

Level 1. Informal level, there is no defined processes for quality practices or standards. The organization may be in the initial stages of considering how projects should define quality, but most efforts are informal and had-oc.

Level 2. Defined level, the organization has defines some basic quality standards and project quality policies that are being adopted. But not all projects are using it in a consistent manner.

Level 3. Repeatable level, the quality process is well documented and is an organizational standard. All projects are using it and producing consistent and repeatable results.

Level 4. Controlled level, all projects ire required to use quality planning standard processes. The organization has a unit or roles that coordinate quality standards and assurance and quality audits are done on a regular basis.

Level 5. Optimized level, the quality process includes guidelines for feeding improvements back into the process. Metrics are used as key criteria for quality decisions and quality results are predictable. The model helps an organization identify were they stand and were they should strive to reach, it is a simple way to determine the level of maturity required for a project or organization, some organizations may be comfortable with achieving a level 3 while others may be encouraged to reach a level 4 due to the need to comply with legal or regulatory standards.

Implementing a QMS:

For most organizations, the primary motivation for implementing a QMS is either management need or customer demand. Managements motivation for implementing a QMS usually stems from its need to improve productivity, improve product quality, and reduce time-to-market, thus gaining a competitive advantage. Sometimes, managements motivation for implementing a QMS is driven by competitive pressure, where the organizations competitors have established (or are in the process of establishing) a formal QMS with the goal of registration to a recognized QMS standard, such as ISO 9000. In such cases, registration to a quality management system standard is perceived to be a valuable asset for marketing and soliciting new customers.

Customer demands on an existing supplier (or a potential supplier) to implement a QMS is driven by the customers need of an assurance that the supplier is capable of meeting the customers quality requirements. Often, such a demand may be made in response to continued sub par performance of an existing supplier, or prior to approving a new supplier.

In certain industries, customers (including government agencies) also go to the extent of inviting bids only from suppliers who have attained a particular quality registration. Because an organization that does not have a QMS in place may be barred from bidding for potential business, it is likely to translate into management motivation to implement a QMS.

It has been argued that the management-motivated approach will normally be more comprehensive and fruitful than the model used for demonstrating the adequacy of the quality system (i.e., the customer motivated implementation of a QMS). In other words, the likelihood that a QMS will be adequate and effective is significantly improved if its implementation is driven by internal motivation in the organization (management need) rather than external pressures (customer demand). In fact, management commitment to quality is the most significant prerequisite for a successful QMS implementation.

When management visibly demonstrates its commitment to quality, and promotes a quality-oriented and customer-focused mindset in the organization, it encourages the employees to strive to realize the true benefits of the implemented QMS. On the other hand, a QMS that is implemented solely with the objective of achieving a coveted quality registration to win new business, or please potential customers, will serve merely as a short-lived marketing tool. This is because the lack of an effective QMS eventually will manifest itself in poor product quality, late product delivery, low employee morale, and dissatisfied customers.

Benefits of implementing a QMS:

Implementation of a QMS in an organization offers near-term and long term rewards:

Defined processes and supporting QMS documentation are the basis for repetition, and help reduce (and eliminate) variation within process execution. As variation is reduced, it results in improvements in operational efficiency.

With the implementation of corrective and preventive solutions that effectively address the root causes of quality problems, permanent solutions are implemented. This results in improvements in organizational effectiveness.

A QMS enables an organization to focus on how it executes its business processes. Such process focus and awareness are essential in order to be able to monitor and analyze process performance for continual improvement.

A QMS fosters continual improvement in the organizations productivity, rework costs, on-time delivery performance, and within budget project execution. This enables the organization to enhance its bottom-line revenue growth.

A QMS results in higher-quality products and services, as quality management practices are continually improved.

As an organization improves the quality of products and services, it improves customer satisfaction levels, which helps improve customer loyalty and customer retention.

A QMS enables the organization to gain a competitive advantage due to its being perceived as a best-in-class supplier by its customers. This enables the organization to retain customers, attract new ones, increase market share, and enhance top-line revenue growth.

A QMS enhances an organizations competitive position by allowing it to present itself as a viable supplier in situations where a customer requires its suppliers to have a formal QMS in place (although in certain cases customers also seek registration to a QMS standard).

A QMS enhances customer confidence in the ability of a supplier to deliver products and services according to specified quality requirements (quality assurance).

A QMS reduces the organizations reliance on heroes to make projects a success, because all employees are aware of the required quality management practices. In other words, it enhances an organizations ability to achieve quality requirements because employee competencies are augmented by a process infrastructure that helps achieve the Identified requirements.

A QMS reduces (or eliminates) an organizations dependence on a few individuals for information regarding critical processes, because such processes are now formally documented. This reduces organizational vulnerability to employee turnover.

A QMS reduces waste of resources and loss of reputation resulting from rejection and rework of inferior-quality products (referred to as Cost of Poor Quality). This enables the organization to shift from a reactive mode of operation (performing corrective action) to a proactive mode (performing preventive action).

A QMS promotes employee understanding that quality is everyones responsibility. The realization that each employee contributes to the achievement of quality requirements helps institutionalize quality improvements across the organization, at all levels.

Employee morale and satisfaction improve as employees participate in defining their processes, and are empowered to own, monitor, and continually improve those processes.

A QMS results in improved communication both internally and externally, which results in improvements in efficiency and effectiveness, and improved customer supplier relations.

Quality Management Systems Philosophy:

A system is an ordered set of ideas, principles and theories or a chain of operations that produce specific results, and to be a chain of operations they need to work together in a regular relationship. Shannon defined a system as a group or set of objects united by some form or regular interaction or interdependence to perform a specified function.

Deming defines a system as a series of functions or activities within an organization that work together for the aim of the organization. These three definitions appear to be consistent although worded differently.

A quality management system is not a random collection of procedures, tasks or documents (which many quality systems are). Quality management systems are like air-conditioning systems they need to be designed. All the components need to fit together, the inputs and outputs need to be connected, sensors need to feed information to processes which cause changes in performance and all parts need to work together to achieve a common purpose.

ISO 9000 defines a quality management system as a set of interrelated or interacting processes that achieve the quality policy and quality objective. But the word quality gets in the way of our thinking. It makes us think that quality management systems operate alongside environmental management systems, safety management systems, and financial management systems. In ISO 9000 it is stated that the quality management system is that part of the organizations management system that focuses on the achievement of outputs in relation to the quality objectives, therefore the quality management system must exist to achieve the organizations quality objectives. This concept was unclear in the 1994 version with the result that many quality systems were focused on procedures for their own sake rather than on serving objectives. It would appear therefore that other parts of the management system are intended to serve the achievement of specific objectives. For example, we could establish:

Safety systems to serve safety objectives

Environmental systems to serve environmental objectives

Security systems to serve security objectives

Human resource systems to serve human resource objectives

Marketing systems to serve marketing objectives

Innovation systems to serve innovation objectives

Financial systems to serve financial objectives

Many organizations have appointed specific managers to achieve each of these objectives so that we have for instance an Environmental Manager, fulfilling Environmental Objectives through an Environmental Management System and a Quality Manager fulfilling Quality Objectives through a Quality System. Do the same for the others and you would have multiple management systems. This is what functional management produces and as a result puts the managers in potential conflict with each other as each tries to achieve their objectives independently of the others. Many of these objectives are in reality not objectives at all but constraints that exist only by virtue of the organizations necessity to satisfy customers.

However, several questions arise: Are quality objectives, objectives of the same kind as the other objectives or are these other objectives a subset of quality objectives? and Is the quality management system just one of a series of systems or is it the parent system of which the others are a part?

To find the answer it is necessary to go back a step and ask: Which comes first, an objective or a need? We dont set financial objectives because we think its a good idea; there is a need that has its origins in the organizations mission statement.

The mission statement tells us what our goal is and where are we going. Without customers there is no business therefore the basic purpose of a business is to satisfy a particular want in society and so create a customer. Its mission is related to these wants and is expressed in specific terms. To be effective, a mission statement should always look outside the business not inside. For example, a mission that is focused on increasing market share is an inwardly seeking mission whereas a mission that is focused on bringing cheap digital communication to the people is an outwardly seeking mission statement. From the mission statement we can ask, What affects our ability to accomplish our goal? The answers we get become our critical success factors and it is these factors that shape our objectives:

If our success depends on the safety of our products, we need safety objectives.

If our success depends on securing the integrity of information entrusted to us by our customers, we need security objectives.

If our success depends on the impact our operations have on the environment, we need environmental objectives.

If our success depends on capital investment in modern plant and machinery, we need financial objectives.

This list is incomplete, but if we were to continue, would we find a reason for having quality objectives? Business will only create customers if they satisfy their needs; therefore success in all businesses depends on fulfilling customer needs and expectations.

Quality is defined in ISO 9000 as the degree to which a set of inherent characteristics fulfils requirements. Note that the definition is not limited to customer requirements and the inherent characteristics are limited to products. It could apply to any set of requirements internal or external, technical or non-technical including health, safety and environmental requirements. It could also apply to any process outcome: products, services, decisions, information, impacts, etc. It extends to all those with an interest in the business.

Quality is therefore a term that describes the condition of business outcomes. Everything a business does must directly or indirectly affect the condition of its outcomes and therefore all business objectives are quality objectives. Therefore we do not need quality objectives in addition to all the other objectives because all objectives are quality objectives and the quality management system is not part of the management system it is the management system. We can therefore describe the relationship between the management system and the organization diagrammatically as shown in Figure.

All the objectives only arise as a result of the organization seeking to create and satisfy customers. There is no environmental objective, impact or anything else if the organization does not have customers. Objectives for the environment, safety, security, finance, human resources etc. only have meaning when taken in the context of what the business is trying to do, which is to create and satisfy customers. While many might argue that the purpose of business is to make money for the shareholders or owners this is different from the purpose of a business, which is to create and retain customers and do this in a manner that satisfies the needs and expectations of all stakeholders. Without a customer there is no business at all, therefore customer needs must come first. Satisfying customers becomes the only true objective; all others are constraints that affect the manner in which the organization satisfies its customers. It may help therefore if we view any objective that serves a stakeholder other than the customer as a constraint or a requirement that impacts the manner in which customer objectives are achieved.

The management system is the way the organization operates, the way it carries out its business, the way things are. Its purpose is to enable the organization to accomplish its mission, its purpose, its goals and its objectives. All organizations possess a management system. Some are formal, some are informal. Even in a one-person business, that person will have a way of working a way of achieving his or her objectives. That way is the system and comprises the behaviors, processes and resources employed to achieve those objectives. The system comprises everything that affects the results. It only has to be formalized when the relationships grow too large for one person to manage by relying on memory.

It is unlikely that you will be able to produce and sustain the required quality unless you organize yourselves to do so. Quality does not happen by chance, it has to be managed. No human endeavor has ever been successful without having been planned, organized and controlled in some way.

Scope of the System:

As the quality management system is the means by which the organization achieves its objectives, it follows that the scope of the system (what it covers) is every function and activity of the organization that contributes to these objectives. This should leave no function or activity outside the system. The system must also include suppliers because the organization depends on its suppliers to achieve its objectives. The chain of processes from the customer interface and back again includes the suppliers.

Including every function and activity within the system should not be interpreted as compelling every function and activity to certification to ISO 9001 far from it.

Design of the System:

Imagine you are designing an air-conditioning system. You would commence by establishing the system requirements, then design a system that meets the requirements, document the design and build a prototype. You would then test it and when satisfied it functions under the anticipated operating conditions, launch into production. If problems are detected during production, solutions would be developed and the design documentation changed before recommencing production. If problems were experienced during maintenance, the design documentation would be consulted to aid in the search for the fault. If improvements are to be made, once again the design documentation would be consulted and design changes made and the documentation revised before implementation in production.

This traditional cycle for products therefore has some redeeming features:

Design does not commence without a specification of requirements if it does, the wrong product is likely to be designed.

Designs are documented before product is manufactured if they are not documented, it is likely that the product cannot be manufactured or will not fit together or functions as intended.

Designs are proven before launching into production if production commences before design proving, the product will probably fail on test or in service.

Design documentation is changed before changes are implemented in production if documentation is not changed before implementation, the product will be different each time it is made; solved problems will recur and no two installations will be alike.

If we apply the same logic to the design and implementation of a management system, we would:

Define the requirements before commencing management system design, i.e. we would establish the objectives the system is required to achieve (The vision, mission, corporate goals etc.)

Document the management system design before implementation.

Verify that the management system meets the requirements before commitment to full operation.

Document changes to the management system before implementation in practice.

But what often happens is:

Management system development commences without a specification of requirements or a clear idea of the objectives is need to achieve; often the system exists only to meet ISO 9000, or some other standard.

The management system is documented before it has been designed.

The management system is made fully operational before being verified it meets the requirements.

Changes are made to practices before they are documented.

Improvements are made to the management system without consulting the documentation because it is often out of date.

As the management system is the means by which the organization achieves its objectives, the management system delivers the organizations products. (This includes hardware, software, services and processed material including information products.)

If we analyze the factors on which the quality of these products depends we would deduce they include:

The style of management (autocratic, democratic, participative, directive etc.)

The attitude and behavior of the people (positive, negative etc.)

The capability of the available resources (capacity, responsiveness, technology)

The quantity and quality of the available resources (materials, equipment, finance, people)

The condition and capability of the facilities, plant and machinery

The physical environment in which people work (heat, noise, cleanliness etc.)

The human environment in which people work (freedom, empowerment, health and safety)

It follows therefore that a management system consists of the processes required to deliver the organizations products and services as well as the resou

Documents

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