FP Last Sem
FP Last Sem
FP Last Sem
CHAPTER-1
INTRODUCTION TO THE STUDY
The main purpose of the industrial project is to provide exposure to students to the real
working environment, and in doing so they would be able to relate theoretical knowledge
learned in the classroom. The program will also aid the students in the development of their
skills such as: Safety practices, Work ethics Communication and Management. It also aims to
achieve closer relationships with the industry.
There is a number of learning outcome of which the student doing the industrial project are:
It provides the students with the opportunity to implement the theoretical knowledge learnt in
the classroom into real-world situations. Through this hands-on experience working with the
industrial practitioners, the students will have better understanding of the knowledge learnt.
Through this students will be assigned projects and tasks by their host company supervisors.
This will expose them to the real working environment where they would work with other
students or independently to investigate and study the technical part of the projects and tasks
assigned.
During the project period in the host company, students will able to demonstrate their
practical, communication and technical skills gained throughout the project. The students will
able to present their findings and testimonies will even be able to secure placement at the host
company and launch their career there upon graduation.
The adoption of quality management system is a strategic decision for an organization that
can help to improve its overall performance and provide a sound basis for sustainable
development initiatives. The potential benefits to an organization of implementing a quality
management system based on the International Standard are: the ability to consistently
provide products and services that meet customer and applicable statutory and regulatory
requirements; facilitating opportunities to enhance customer satisfaction; addressing risks and
opportunities associated with its context and objectives; the ability to demonstrate conformity
to specified quality management system requirements.
The major challenge for organizations is to meet the demands of the customer (Patyal &
Koilakuntla, 2017). According to Patyal, Vishal Singh and Koilakuntla, customers are
powerful and organizations are working in stiff competition. The customers need them to
produce their products in an environmentally friendly way. It imposes additional pressure to
produce with efficiency and effectiveness. The products should also be supplied with
minimum cost, high quality, in speedy situations with variety in number and type of products
to meet the varied requirements of customers, to have increased market share and to remain
competitive. Organizations are, therefore, continuously enhancing their performance by
improving quality of their products and services through various quality management (QM)
practices.
In the past few decades, companies in the world have been trying to survive these challenges
and rapidly changing business environment in which management must be more and more
intelligent in finding ways to sustain or gain competitive advantage. Among the measure that
have been taken to withstand these challenges, most manufacturing organizations have
chosen to implement and use new improvement philosophies such as quality management
systems, concurrent Engineering, Lean Production, Just-In Time (JIT) strategies, Business
Process Re-engineering (BPR) and others, to become more effective in the way they conduct
business. The optimization of the organization’s performance is the main driver behind these
philosophies both internally and externally within its respective market targets strategies.
The ISO 9000 family addresses various issues of quality management and holds some of
ISO’s best-known standards. The standards provide guidance and tools for companies and
organizations who want to ensure that their products and services to consistently meet
customer’s requirements, and that quality is consistently improved (ISO, 2017).
Several researches have shown quality management systems (QMS) have been widely
applied successfully by many manufacturing companies to improve their process, increase
profits and organizational performance. Among the most applied quality improvement
programs, ISO 9001 is the popular one. Many current literatures have, in common, the
general assumption on the adoption of ISO 9001 to result in firm’s performance
improvement.
Since its first major revision in the year 2000, ISO 9001 has adopted a “process approach” to
manage quality. The quality management system requires organizations to fulfill and meet
key requirements, which are originally defined by customers. The key requirements are: 1) A
clear commitment of the organization’s top management to the quality management system;
2) Customer focus approach throughout the organization; 3) A clear quality policy and policy
objectives defined by top management; 4) Definition of the responsibility and authority of the
various personnel involved in the quality management system and communication between
them; 5) Ensuring the availability of resources (including competent personnel); 6)
Appropriate levels of documentation; and 7) Control of the various operational processes,
from sales through design and development of the product or service provided, manufacture
(or service provision), process monitoring, inspection and after-sales support (UNIDO, 2016).
The major reasons why organizations need to implement ISO quality management systems
include the motive to improve company image, improve the efficiency of the quality system,
comply with customer requirements, meet government demands, improve marketing
internationally, improve product/service quality, improve productivity and reduce costs (Al-
Rawahi & Bashir, 2011).
Furthermore, according to the recent empirical study conducted by UNIDO, ISO 9001 QMS
certified Brazilian organizations have generally demonstrated good organizational
performance (UNIDO, 2016). This ISO 9001 impact assessment asserted that, the
performance of the organizations that were visited was good and demonstrated the
effectiveness of the accredited certification process within the sample population for the
survey, particularly in larger organizations (with over 200 employees).
The empirical findings by Kafetzopoulos, (2014), indicated the Indian manufacturing firms
that implement ISO 9001 QMS, through achieving the prescribed objectives of the standard,
benefited from the resulting improvements in terms of product quality and operational
performance. They also proved that their finding is consistent with the findings by Shih
(1996) and Koc (2007) who argue that product quality is improved in certified firms due to
the systematization process provided by ISO 9001.
Moreover, empirical findings by Al-Rawahi & Bashir, (2011), asserted that there was
perceived benefits of ISO 9001 QMS implementation leading to highest improvement in
quality awareness, customer satisfaction, the clarity of work procedures, and documentation
systems, among others. Achieving a high improvement in documentation systems is the most
common finding reported in the literature. The effective implementation of ISO 9001 has
direct impact on operational performance quality, performance improvement and causally
linked positive effect on business performance improvement.
The empirical finding by Drosinos also suggested that QMS would help the organization in
critical areas such as the reduction of defective products, the improvement of internal
communication, the increase of customer’s satisfaction, the increase of share market, the
opportunities for in infiltration in new markets and global deployment. In addition they
observed that the implementation of the QMS gives additional benefits to companies such as
a decrease in cost of quality and mistakes; higher quality of the products, reduction in waste,
reduction in late delivery time, productivity improvement, down in returns and advertising
potential.
Therefore, in this research, the investigation of the impact of ISO 9001 QMS on
organizational performance will be investigated considering a case company to observe the
existing practice is in line with the empirical findings observed in data analysis and
discussion.
This International Standard can be used by internal and external parties. It is not the intent of
this International Standard to imply the need for: Uniformity in the structure of different
quality management systems; Alignment of documentation to the clause structure of this
International Standard; The use of the specific terminology of this International Standard
within the organization. The quality management system requirements specified in this
International Standard are complementary to requirements for products and services.
ISO 9001: 2015 is the result of a five-year revision of ISO 9001. The revision process of ISO
9001: 2015 was started by ISO/Technical committees (ISO/TC 176) aimed at ensuring the
international standards. ISO 9001: 2015 reflects changes in an increasingly complex and ISO
9001: 2015 is the result of a five-year revision of ISO9001.The revision process of ISO 9001:
2015 was started by ISO/Technical committee (ISO/TC 176) aimed at ensuring international
standards. ISO 9001: 2015 reflects changes in an increasingly complex and dynamic
environment. ISO 9001: 2015 consist of 10 clauses, namely the two main parts and the
attachment located in clause zero to clause three and the part of the conditions obtained in
clauses four to clause ten. This clause is designed according to the structure in annex SL,
which is a High-Level Structure (HSL) which is the same basic reference for all management
system structure published by ISO. The clauses of ISO 9001:2015 are: Scope, Normative
References, Terms and Definitions, Organizational Context, Leadership, Planning, Support,
Operational, Job Evaluation and Improvement.
Customer satisfaction
A fully recognized and implemented quality management system will ensure that the
customer is satisfied by meeting their requirements, and will thus enhance the confidence of
the customer. Attaining customer satisfaction is a greater achievement for the organization
that will assist in capturing the market, or increasing the market share.
Consistent products
Implementing a quality management system can assist to attain more consistency in the
project activities, and enhance the effectiveness by improving in the resource and time usage.
The disciple of the quality includes the efforts directed towards the improvement of
processes, being used to maintain consistency, reduce expenditure and ensure production
within the schedule baseline. The systems products and processes are continually improved
by the implementation of best practices like modern manufacturing techniques, use of
primavera project management software including primavera p6, and the use of proper
quality control technique.
Increase in production
Improved production is achieved due to proper evaluation techniques being applied, and
better training of the employees. A strict process control is directed towards performance
consistency, and less scrap.
Less rework
Quality is measured continuously due to the appropriate procedures that ensure immediate
corrective actions on occurrence of defect. Since efforts are directed towards quality
products, rework due to warranty claims is minimized. This reaction increase customer
confidence, and increase in business.
Other Quality Management System benefits include proper management of project risks and
costs and identification of development prospects. These result in the increase of market
share, reputation and capability to react to industries opportunity.
The Quality Management System emphasizes the issues related to operations management.
These encourage frequent interaction between project departments and promote harmony. All
these factors contribute to improved quality and customer satisfaction.
What is new with ISO 9001: 2015 is the explicit requirement of risk-based thinking to
support and improve understanding and application in process approaches that already exist
in previous versions of ISO 9001 standard. Risk management is a process to identify the
hazards that exist in the business as well as the choice of ways to determine the methods and
techniques used to protect the business from such hazards. The process of risk management
is the identification of risk, measurement, and risk control and risk mitigation.
Many researchers have sought to understand how the implementation of the ISO 9001 assists
organizations to intrinsically improve their internal and external organizational processes and
the respective performances. The implementation of any continuous improvement initiative is
always attached to the improvement of some or whole area of the organizational performance
viewing from different perspectives. Numerous empirical studies have measured the
relationship between QMS practices and performance (Patyal & Koilakuntla, 2015b). It has
been observed that several empirical studies have demonstrated the direct impact of QMS on
organizational performance (Powell, 1995; Patyal & Koilakuntla, 2017). Knowing the
economic effects of implementing a QMS grants certain advantages to companies because it
provides additional information for decision making (Leonardo, 2011).
Based on the assessment made by several researchers, quality improvement initiatives are, in
effect, reported to have positive impact on product quality performance of the organization
and usually related to have positive effect on the organization’s customers’ satisfaction.
Among the advantage of QMS implementation has been known to become acquainted with
the financial performance improvement through comparing the actual outcomes achieved
with those which would have been reached if this system had not been used (Leonardo,
2011). The case study on brewery companies by Tulu, (2011) has demonstrated that ISO
certification has a significant impact on the companies’ performance particularly sales
improvement of the firms. Implementation of QMS has also been suggested to enable
organizations to learn how much they could increase their profits by implementing the
management system.
Organizations use the standard to demonstrate the ability to consistently provide product and
services that meet customer and regulatory requirements. ISO 9001:2015 standard is an
opportunity for organization to align their strategic direction with the quality management
system. A whole range of external regulations are being monitored by the organization. The
ISO 9001:2015 standard provides guidelines for the efficiency and effectiveness of the QMS,
and consequently the potential for improvement of the performance of the organization.
These standards help organizations to identify those risk and opportunities in the operation
and performance of the quality management system.
In the past few decades, many organizations have implemented QMS, either due to external
reasons, such as customer pressure or internal reasons such as to improve customer service,
base for quality improvement etc. (Van Der Wiele et al, 1997). Some organizations have also
implemented QMS as a catalyst for change, such as to change organizational culture, have a
starting point for quality improvement etc.
India was the world’s second-largest steel producer at with production standing at 106.5 MT
in 2018. The growth in the Indian steel sector has been driven by domestic availability of raw
materials such as iron ore and cost-effective labor. Consequently, the steel sector has been a
major contributor to India’s manufacturing output. India’s steel production capacity has
expanded to 137.975 million tons in FY19. India surpassed Japan to become the world’s
second largest steel producer in 2019, with crude steel production of 111.2 million tons.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived
for continuous modernization and up-gradation of older plants and higher energy efficiency
levels.
Indian steel industries are classified into three categories such as major producers, main
producers, and secondary producers.
Structure
The iron and steel industry in India is organised into three categories: main producers, other
major producers, and secondary producers. In 2004-05, the main producers i.e. SAIL, TISCO
and RINL had a combined capacity of around 50% of India’s total steel production capacity
and production. The other major producers — ESSAR, ISPAT and JVSL — account for
around 20% of the total steel production capacity.
National steel policy- 2005 has the long-term goal of having a modern and efficient steel
industry of world standards in India. The focus is to achieve global competitiveness not only
in terms of cost, quality, and product-mix but also in terms of global benchmarks of
efficiency and productivity. The Policy aims to achieve over 100 million metric tonnes of
steel per year by 2019-20 from the 2004-05 level of 38 mt. This implies an annual growth of
around 7.3% per year from 2004-5 onward.
The strategic goal above is justified because steel consumption in the world, around 1000
million metric tonnes in 2004, is expected to grow at 3.0% per annum to reach 1,395 million
metric tonnes in 2015, compared to 2% per annum in the past fifteen years. China will
continue to have a dominant share of the demand for world steel. Domestically, the growth
rate of steel production over the past fifteen years was 7.0% per annum. The projected rate of
7.3% per annum in India compares well with the projected national income growth rate of 7-
8% per annum, given an income elasticity of steel consumption of around 1.[4]
Subsequent steel policies have been drafted each year. The Indian Ministry of Steel has
released draft National Steel Policy (NSP), 2017. The problems identified in this sector
include:
The aim of the draft NSP is to develop a self-sufficient steel industry that is globally
competitive. The policy proposes setting up Greenfield Steel Plants along the Indian coastline
under the Sagarmala Project. This has been proposed in order to tap cheap imported raw
materials such as coking coal and export the output without incurring huge cost burden. The
policy has also proposed the idea of gas-based steel plants and use of electric furnaces in
order to bring down the use of coking coal in blast furnaces. The policy targets to achieve
production of 300 million tonnes by 2030-31.
Global Scenario
In CY 2019, the world crude steel production reached 1870 million tonnes and
showed a growth of 3.4% over CY 2018.
China remained world’s largest crude steel producer in same period (996 mt) followed
by India (111mt), Japan (99mt) and the USA (88mt).
Per capita finished steel consumption in 2018was224.5 kg for world and 590.1 kg for
China (Source: World Steel Association). The same for India was 73.3 kg in 2018
(Source: JPC) and 75.7 kg (prov) in 2019.The per capita consumption of India in 2018-19
was 74.1 kg and that in 2019-20 was 74.6 kg.
Domestic Scenario
The Indian steel industry has entered into a new development stage, post de-regulation,
riding high on the resurgent economy and rising demand for steel.
Rapid rise in production has resulted in India becoming the 2 nd largest producer of
crude steel during 2018 and 2019, from its 3rd largest status in 2017. The country was also
the largest producer of Sponge Iron or DRI in the world and the 3 rd largest finished steel
consumer in the world after China & USA in 2019.
In a de-regulated, liberalized economic/market scenario like India the Government’s
role is that of a facilitator which lays down the policy guidelines and establishes the
institutional mechanism/structure for creating conducive environment for improving
efficiency and performance of the steel sector.
In this role, the Government has released the National Steel Policy 2017, which has
laid down the broad roadmap for encouraging long term growth for the Indian steel
industry, both on demand and supply sides, by 2030-31. The Government has also
announced a policy for providing preference to domestically manufactured Iron & Steel
products in Government procurement.
Market Size
India’s finished steel consumption grew at a CAGR of 7.5 per cent during FY08-FY19 to
reach 97.54 MT. India’s crude steel and finished steel production increased to 106.56 MT and
131.57 MT in 2018-19, respectively. In FY20 (till February 2020), crude steel and finished
steel production stood at 100.78 MT and 94.01 MT, respectively.
During 2018-19, 6.36 MT of steel was exported from India. Exports and imports of finished
steel stood at 7.78 MT and 6.39 MT, respectively, in FY20P (up to February 2020).
Production
India was the 2ndlargest producer of crude steel in the world in 2019.
In 2019-20, production of total finished steel (alloy/stainless + non alloy) was102.059
million tonnes.
Production of Pig Iron in 2019-20was 5.507 mt (prov.), a decline of 14.1% over last
year.
India was the largest producer of Sponge Iron in the world in 2019(prov.). The coal
based route accounted for 86% of total Sponge Iron production (37.143 mt) in the country
in 2019-20.
Demand – Availability
Industry dynamics, including demand-availability of iron and steel in the country are largely
determined by market forces and gaps in demand-availability are met mostly through
imports.
Interface with consumers exits by way of meeting of the Steel Consumers’ council, which
is conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.
The New Industrial policy opened up the Indian iron and steel industry for
private investment by (a) removing it from the list of industries reserved for public sector and
(b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign
direct investment are now freely permitted up to certain limits under an automatic route.
Ministry of Steel plays the role of a facilitator, providing broad directions and assistance to
new and existing steel plants, in the liberalized scenario.
(i) Steel: The liberalization of industrial policy and other initiatives taken by the Government
have given a definite impetus for entry, participation and growth of the private sector in the
steel industry. While the existing units are being modernized/ expanded, a large number of
new steel plants have also come up in different parts of the country based on modern, cost
effective, state of-the-art technologies. In the last few years, the rapid and stable growth of
the demand side has also prompted domestic entrepreneurs to set up fresh green field projects
in different states of the country.
Crude steel capacity was 142.98 mt in 2019-20, up by 0.5% over 2018-19and India, which
emerged as the 2ndlargest producer of crude steel in the world in 2019, as per data released by
the World Steel Association, has to its credit, the capability to produce a variety of grades and
that too, of international quality standards.
(ii) Pig Iron: India is also an important producer of pig iron. Post-liberalization, with setting
up several units in the private sector, not only imports have drastically reduced but also India
has turned out to be a net exporter of pig iron. The private sector accounted for 89% of total
production of pig iron (5.507 mt) in the country in 2019-20.
(iii) Sponge Iron: India, world’s largest producer of sponge iron (2019), has a host of coal
based units located in the mineral-rich states of the country. Over the years, the coal based
route has emerged as a key contributor and accounted for 86%of total Sponge Iron production
in the country during 2019-20. Capacity in Sponge Iron making too has increased over the
years and stood at 37.143 mt (2019-20).
Steel Prices
Price regulation of Iron and Steel Industries was abolished on 16.1.1992. since the steel
prices are determined by the interplay of market force.
Domestic steel prices are influenced by trends in raw material prices, demand-supply
conditions in the market, and international price trends among others.
As a facilitator, the Government monitors the Steel market conditions and adopts fiscal
and other policy measures based on its assessment. Currently, GST of 18% is applicable
on steel and there is no export duty on steel items.
A steel price Monitoring Committee has been constituted by the Government with the
aim to monitor price rationalization, analyze price fluctuations and advise all concerned
regarding any irrational price behavior of Steel commodity.
To avoid any distortion in prices in view of ad-hoc and rising imports, the Government
had taken several steps including raising import duty and imposed a gamut of measures
including anti-dumping and safeguard duties on a host of applicable Iron and Steel items.
Data on import of total finished steel (alloy/stainless+ non alloy) is given below for the last
five years:
Indian Steel Industry: Export of Total Finished Steel (in million tonnes)
Data on export of total finished steel (alloy/stainless+ non alloy) is given below
Investments
Steel industry and its associated mining and metallurgy sectors have seen several major
investments and developments in the recent past.
According to the data released by Department for Promotion of Industry and Internal Trade
(DPIIT), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the
tune of US$ 11.45 billion in the period April 2000–December 2019.
Some of the major investments in the Indian steel industry are as follows:
For FY2019-20, JSW Steel set a target of supplying around 1.5 lakh ton of TMT
Rebars to metro rail projects across the country.
In October 2019, Kamdhenu Ltd added new production capacity of 60,000 ton per
annum in Dadri, Uttar Pradesh to manufacture Kamdhenu Structural Steel.
As of December 2018, Vedanta Group is going to set up a one-million-ton capacity
steel plant in Jharkhand with an investment of Rs 22,000 crore (US$ 3.13 billion).
Ministry of Steel plans to invest US$ 70 million in the eastern region of the country
through accelerated development of the sector.
The production capacity of SAIL is expected to increase from 13 MTPA to 50 MTPA
in 2025 with total investment of US$ 24.88 billion.
Some of the major problems faced by Indian iron and steel industry are as follows:
1. Capital:
Iron and steel industry requires large capital investment which a developing country like
India cannot afford. Iron and steel industry requires large capital investment which a
developing country like India cannot afford.
2. Lack of Technology
Throughout the 1960 and up to the oil crisis in mid-1970s, Indian Steel Industry was
characterised by a high degree of technological efficiency. This technology was mainly from
abroad. But during the following two decades after the oil crisis, steep hike in energy costs
and escalation of costs of other inputs, reduced the margin of profit of the steel plants.
3. Lower Productivity
The per capita labour productivity in India is at 90-100 tonnes which is one of the lowest in
the world. The labour productivity in Japan, Korea and other major Steel producing countries
is about 600-700 tonnes per man per year.
A comparable facility in India employs 5000 workers. Therefore it is urgent need to increase
the productivity which requires retraining and redevelopment of the labour force.
Most of the public units are plagued by inefficiency caused by heavy investment on social
overheads, poor labour relations, and inefficient management, under utilization of capacity,
etc. this hinders proper functioning of the Steel plants and results in heavy losses.
The potential utilization in steel is very low. Rarely the potential utilization exceeds 80%.
Steel Plants only utilises 50% of its potential. This is caused by several factors like strikes,
lockouts, scarcity of raw materials, energy crisis, inefficient administration, etc.
6. Heavy Demand
Even at low per capita consumption rate, demand for steel is increasing with each passing day
and large quantities of steel are to be imported for meeting the demands. Production has to be
increased to save precision foreign exchange.
Although India has huge deposits of high grade iron ore, coal reserves, especially high grade
cooking coal for smelting iron are limited. Many steel plants are forced to import
metallurgical coal.
Government Initiatives
Some of the other recent government initiatives in this sector are as follows:
Road ahead
The National Steel Policy, 2017, has envisaged 300 million tons of production capacity by
2030-31. The per capita consumption of steel has increased from 57.6 kg to 74.1 kg during
the last five years. As per Indian Steel Association (ISA), steel industry grows by over 7.2 per
cent in both 2019-20 and 2020-21.
Huge scope for growth is offered by India’s comparatively low per capita steel consumption
and the expected rise in consumption due to increased infrastructure construction and the
thriving automobile and railways sectors.
Steel Industries Kerala Limited (SILK) is a state-owned steel manufacturing company in the
state of Kerala, India. It is a multi-faceted company with stringent quality standards . The company
manufactures steel castings, does structural fabrications, building of small vessels and barges,
breaking of ships and vessels. Steel and Industrial Forgings Ltd is a subsidiary of the
company.
The steel fabrication unit at chertala commenced production in 1980. It is located on cochin-
Trivandrum national highway to the nearest airport. The annual production capacity of the
steel fabrication unit is 5000 MT on structural item including building structures, store tanks,
transformer tanks, boiler parts, transmission tower, substation structure, material handling
equipment and turnkey civil and structural works for the process engineering units and
industrial projects.
The unit is fully equipped with all requisite machinery and equipment such as plate blending
machine, press brake, drilling machine, precision plate, plasma cutting set etc. Along with the
manufacturing activity most of the units are having service and contract division also which
have been recognized for the expertise in construction as well as project management.
SILK has 5 manufacturing units, 2 service divisions and 2 subsidiary companies. For
production of heavy and medium type structure and equipment. The unit is maintained by
high qualified and experienced personnel on shop floor and department like design,
engineering, production, marketing etc.
Presently there are 145 permanent employees including the managers and engineers. Out of
which 131employees are presently working and the rest 14 are on deputation and on long
leave. The temporary posts consist of more than 100 apprentices and contract-based workers.
Contract based workers consist of former employees who took VRS from the company and
external persons who are expert in this field. The peoples recruited could get training and
various seminars and classes are conducted.
The Unit has executed many structural & civil contracts including
STRATEGIC INTEND
The mission, vision and quality policy of steel industries Kerala limited (SILK) are stated as
follows:
MISSION
To supply quality steel products, providing related services and solutions to a worldwide
client base while utilizing innovative technologies within and environment of motivated
employees focused on continuous improvement, highest business standards, work ethics and
corporate citizenship, leading to added value to our customer.
VISION
To become the world’s most reliable and innovative manufacturer, service, and solution
provider in the steel industry.
QUALITY POLICY
“Steel Industries Kerala Ltd and its employees are committed to develop, manufacture and
marketing of Bridge Beams, Airport Hangars, Storage Tank ensuring customer satisfaction
of product and services through continual improvement of effectiveness of its quality
management system achieved by setting and reviewing quality objectives”.
QUALITY OBJECTIVE
Steel Industries Kerala Limited shall establish quality objectives at relevant functional levels
which will bring continual improvement in the functions and thereby in the organization. The
quality objective focused on the strategic advantage of the department as well as performance
improvement. The quality objectives established are realistic, quantifiable and shall set
suitable action plans. Also, the management will assign responsibilities to the concerned
managers for achieving the objectives as target in the Metrological Processor for Regulatory
Models (MPRM).
FUTURE PLANS
1. Modernization of existing unit to improve quality and to meet the market requirement.
2. Establishment of export-oriented production unit for selected high demanded items.
3. Computerization of entire business.
4. Strengthening of quality of equipment’s.
5. Establishment of branches in the neighboring states.
6. Establishment of new processing and value additional equipment’s.
7. To keep rework of storage tank and fuel tanks.
8. To keep copper and brass component’s wastage below 3%.
LOCATION
Steel Industries Kerala Limited is located on Cochin- Trivandrum national highway, nearest
airport, and container terminal of Cochin.
PRODUCT PROFILE
STORAGE TANKS
AIRPORT HANGARS
BRIDGE BEAM
STORAGE TANKS
Industrial storage tanks are containers used for storage of gas, oil, water, and petrochemical
products, employed for industrial uses. Industrial storage tanks come in different sizes and
shapes.
They can be underground, horizontal, and vertical, and be made from concrete, stone,
fiberglass, steel, or plastic.
Industrial storage tanks can be categorized into several types based on the substance they
hold and some other factors.
Industrial fuel storage tanks, known as petroleum tanks, also, can store various fluids. In
general, they are used for storing non-organic and organic liquids. They can also hold vapor
as well as different flammable fluids. Fuel storage tanks are manufactured in various designs
and sizes. They are designed to store a variety of fuels, vapor, and industrial liquids. The
product is prized between Rs.55000 and Rs.1 lakh.
There are two main types of fuel storage tanks – Aboveground tanks and Underground tanks.
Aboveground fuel tanks (AST) are quite popular because of their lower long-term
maintenance and upfront costs. These tanks are more cost-effective to install compared to
underground tanks since you do not need to spend for backfilling, deep excavation, and
pavement of more involved piping.
Aboveground fuel tanks offer greater ease of maintenance compared to the below ground
tanks. You can check them easily for leaks and access for repairs. This is the reason
aboveground fuel storage tanks are preferred for storing fuels and chemicals.
Underground Storage Tanks
In Underground storage tank (UST), at least 10% of the tank’s stored volume is buried
underground. Such tanks that are used for storing hazardous materials or fuels are regulated
and must have registration with the (Environmental protection Agency) EPA.
These tanks are suitable for people wanting to maximize the space and/or value of their
property. Underground storage tanks can be put beneath lawns and driveways, where they are
not visible. Arguably, these types of tanks are safer as the chance of explosion is little.
However, the chance of leaks as well as that of generating pollution is increased in case of
these tanks as they cannot be inspected often.
Industrial chemical storage tanks are employed for storing fertilizers, propane, liquefied
natural gas, petroleum products (gasoline, diesel), crude oil, and other chemicals. Industrial
chemical storage tanks are available in various shapes and sizes. These storage tanks are used
for mixing, processing, static storage, and transport of finished chemical products as well as
raw materials. The product is priced according to the capacity. For 2000 Lt charges an
amount of Rs. 38880 and for 4000 Lt It charges an amount of Rs. 75540.
There are three chief types of industrial chemical storage tanks available –
Stainless steel storage tanks: Are effective and durable; however, they are not suitable for
many acids as well as are the most expensive option.
Fiber glass tanks: Are suitable for some applications. However, they have seams that may
leak, need increased maintenance, more prone to human error as they are handcrafted, and are
susceptible to certain chemicals such as hydrofluorosilicic acid – a chemical which etches
glass (FRP’s structural component).
Polyethylene storage: Tanks come in cross-linked as well as linear polyethylene and make
the most versatile industrial storage tanks in the market.
Oil storage tanks are reservoirs or containers that hold oil temporarily during the different
phases of processing into oil products of various types, or before it is consumed or used. The
materials and structure of industrial oil storage tanks are based on their application as well as
the safety, environmental, and legal requirements of other kinds in the storage area.
Oil storage tanks in different sizes, shapes, materials, and types are employed from crude
oil’s initial production to the distribution and refining of different petroleum oil products.
Modern industrial oil storage tanks come in the materials – carbon steel, stainless steel,
reinforced concrete, and plastic. They are also carved on rock salt deposits that are mostly
impermeable, for underground storage of oil. Various oil storage tank types have been built
over time.
As the name suggests, the floating roof tank consists of a floating roof which falls or rises
according to the level of oil in the tank. To prevent the build-up of vapor inside the tank, the
floating roof in this type of tanks has been incorporated as a safety feature.
In the fixed roof tank, the oil stored is not exposed. This tank type is employed for holding oil
products in lower volumes than in case of tanks having floating roofs.
Bunded Tank
Bunded tanks are enclosed by one more tank or have a containment dike surrounding the
tank. The containment dike or outer tank acts as a catch system for preventing leakages, oil
spills, or other types of oil contamination from being spread to the surroundings.
Single skin tank has one layer and double skin tank has two layers of plastic or steel. Double
skin tanks are also known as twin-walled tanks.
This type of industrial oil storage tank was used earlier. Its use is limited now due to
evaporation losses as well as the risk of oil catching fire.
Industrial hot water storage tanks are ASME certified built to be used in industrial
applications in which a constant hot water supply is required. During low demand periods,
water is heated and stored inside the water storage tank, which will be available to be used in
times of high hot water demand. This enables efficient energy use while offering hot eater
whenever required.
Water makes a good medium of heat storage due to its high specific heat capacity. Water can
store greater heat per unit weight in comparison with other substances. Moreover, water is
low cost and non-toxic.
An industrial hot water storage tank that is insulated efficiently can retain the stored heat for
many days, thus reducing the fuel costs. These storage tanks in industries may consist of an
inbuilt oil or gas burner system, and electric immersion heaters. Hot water tanks of certain
types utilize external heat exchanger, like a central heating system. Alternatively, these tanks
types may use heated water from a different energy source.
Water and liquid storage tanks are used to store a variety of liquids like kerosene, jet A,
diesel, gasoline, waste oil, and for underground burial and pressurized applications. Liquid
storage tanks come in different types, each type having its own specific applications.
Collapsible tanks – referred to as blivet, bladder, or pillow tanks also – are an effective re-
usable temporary storage solution.
Poly Tanks
Poly tanks have domestic uses too. They are used for various applications including rainwater
collection and drinking water storage. Poly tanks are available in different types that include
wastewater tanks, mobile tanks, above ground tanks, and more.
Fiberglass Tanks
Fiberglass liquid storage tanks are durable as well as they do not corrode or rust easily. These
tanks have a high level of temperature resistance. They come with different coatings to offer
optimum performance with various liquid storage needs.
Welded steel tanks make a reliable solution for storage over long term. They come in various
shapes and sizes to fit different types of applications.
Corrugated steel liquid storage tanks are versatile, durable, economical, and have a good
longevity. They are made using galvanized corrugated steel. These tanks are available in
various sizes as well as can be customized for meeting specific project needs. Corrugated
steel tanks are used for rainwater collection, industrial process water, or fire suppression.
Water storage is important for domestic, residential, industrial, and commercial purposes.
Plastic water storage tanks are one among the best ways for water storage conventionally.
Plastic tanks are lightweight, durable, and occupy less area compared to cement and concrete
tanks. Moreover, plastic tanks have greater flexibility compared to conventional storage
tanks. Such advantages of plastic water tanks have made them a popular option.
Most materials which are in gaseous state at ambient pressure and temperature are supplied in
the form of compressed gas. The gas is compressed into pressure vessels for storage (like
tube trailers, gas cylinders, or gas canisters) using a gas compressor through piping systems.
Gas cylinders are most used for gas storage, with large numbers being produced at “cylinder
fills” facilities.
However, all the industrial gases are not supplied in gaseous phase. Some gases are vapors,
liquefaction for which can be done under pressure alone at ambient temperature, so these
gases can be supplied in the form of a liquid too in a suitable container. These gases are
useful in the form of ambient refrigerants owing to this phase change. The well-known
industrial gases having this property are – sulfur dioxide, butane, propane, and ammonia.
AIRPORT HANGARS
An airport hangar typically houses large aircraft and requires large doors that span most of
the width of the hangar. Schweiss doors can be built to endure hurricane-force winds while
also maintaining high reliability and ease of use. With our patented lift strap system,
accessing your airport hangar quickly, quietly, and easily is as easy as the push of a button.
Whether you are opening your door while you taxi your aircraft from the runway or sitting on
the ramp in your aircraft outside your hangar, you will be able to open your door easily. Time
is money, and you will save both with the convenience of a Schweiss door.
It is hanger for production and operation of the CL 160 and engineering team facility where
built at Brand Briesen Airfield on the former Soviet Air Force base, acquired to enable
development and operations. This hanger (360m long, 220 m wide and 106 high) is a free-
standing steel-dome “barrel- bowl” structure big enough to fit the Eiffel tower on its side. It
was equipped also with a cutting table (180) meter to manufacture the envelope of airship.
2. Tee Hangars
3. Bellman Hangar
It is a temporary hangar was designed in 1936 in the United Kingdom by N.S Bellman
directorate of works structural engineer, as a temporary hangar capable of being built or
dismantled by unskilled labor with simple equipment and to be transportable easily. Its
general dimensions were 175 Ft long, 95 Ft wide (87 FT 9 in clear width) and 25 FT (clear
height). It was constructed in 14 bays at 12 FT 6 in centers based on a unit of rolled steel
sections: both walls and roof use the same standard unit joint at the junction of wall and roof
by a standard corner unit.
BRIDGE BEAM
Beam bridges, also known as stringer bridges, are the simplest structural forms for bridge
spans supported by an abutment or pier at each end.[1] No moments are transferred throughout
the support, hence their structural type is known as simply supported.
The simplest beam bridge could be a log (see log bridge), a wood plank, or
a stone slab (see clapper bridge) lay across a stream. Bridges designed for
modern infrastructure will usually be constructed of steel or reinforced concrete, or a
combination of both. The concrete elements may be reinforced, pre-stressed or post-
tensioned. Such modern bridges include girder, plate girder, and box girder bridges, all types
of beam bridges.
Types of construction could include having many beams side by side with a deck across the
top of them, to a main beam either side supporting a deck between them. The main beams
could be I-beams (also known as H-beams), trusses, or box girders. They could be half-
through, or braced across the top to create a through bridge.
Concrete beams that are used in buildings as horizontal supporting pieces above doors and
windows. These are called lintels. These lintels are reinforced with steel rods cast in the
concrete. The steel rods are normally placed below the neutral axis. The combination of more
than one material makes the reinforced concrete a composite material. The steel enhances the
strength of the concrete when stretched under tension. Concrete is strong in compression but
weak in tension. We describe this as one of the properties of concrete.
ORGANIZATIONAL CHART
BOARD OF DIRECTORS
ENGINEER
PURCHASE
SUNCONTRACT
DRAUGHTS ASSISTANT ASSISTANT ASSISTANT
MANAGER MANAGER
MEN ENGINEER
DEPARTMENTS
Human Resource Department is concerned with the people’s dimension in the organization.
Here in SILK, Personnel officer is the head of Human Resource Department Under him there
Personnel Office
The Personnel Office deals with recruitment. Wage administration, promotion and industrial
relations, disciplinary actions etc. The employees are appointed through Pecan employment
exchanges. The additional employees required are taken as apprentice or on contract basis.
Selected persons could get 6 months training efficiency in concerned on the supreme quality
while selecting managerial staffs. Presently there are 145 permanent employees including the
managers and engineers. Out of which 131employees are presently working and the rest 14
are on deputation and on long leave. The temporary posts consist of more than 100
apprentices and contract-based workers. Contract based workers consist of former employees
who took VRS from the company and external persons who are expert in this field. The
peoples recruited could get training and various seminars and classes are conducted.
Functions
To recruit right kind of persons for the right job at the right time.
To arrange for training programmers.
To evaluate performance of the employees.
To the handle the grievances of the employees.
To provide welfare facilities to the employees.
Provide and maintain safety measures.
Promotion
Steel Industries Kerala Limited gives promotions in every 4 years and grade also provide.
The basic promotion criteria are the seniority, suitability, skill etc.
Formulating policies
Canteen Facility
The Company provided a canteen for its members. Here foods are provided at a rate of Rs 8
per day for permanent employees. Working time of canteen is 8 hours.
Adequate suitable rest rooms and lunchrooms (with provisions for drinking water) where
workers can eat their meals brought by them are provided.
Company offers particularly good sitting facilities for employees in their working spot
Medical Facility
The company arranges medical check-ups for all employees once in a year. Health data cards
are then issued to all the employees. The medical facilities are provided to employees as well
as his/her family members.
Risk Allowance
When an employee meets with an accident, during employment for the disablement
compensation is paid as per the rules of the Workmen Compensation Act. In addition to the
SILK allows an excreta payment of loss of wages i.e., 50% of the (basis DA) due to such
accident.
An effective arrangement of drinking water for the workers in each section or department is
available. Also, arrangements are made for cold drinking water.
Recreational Facility
Recreational club is organized in the company premises and Rs 10/- per month are revised
from each employee.
A well functioned time keeping system is used by UEI Ltd for proper time keeping. For this
Working Hour
Overtime Allowance
Overtime will be paid at double the normal wages. (Basic + DA) to all the eligible staff and
workers for those who are engaged in overtime.
Leave Facilities
a) Casual Leave-15 days in a year.
b) Earned Leave-30 days in a year.
c) Medical Leave-7 days
Conveyance Allowance
Officers who have put in a minimum of 15 days attendance in a month will be eligible
for getting a conveyance allowance amount of Rs 400/-
Gratuity
The payment of gratuity act 1972 has been amended by the payment of gratuity (amendment)
act 1987. This came into force from 01-10-1987. Maximum salary taken will be Rs 3500 for
gratuity calculation. In the amendment act of 1987, the maximum amount of gratuity payable
to the employees will be Rs 3.5 lakhs. It is given for good faithful service and efficiently
rendered to whole time employees of the company.
E.S.I
The employee of the UEI covered by the ESI Act and contribution is deducted from the
employee’s salary since 01-11-1992. Employee’s whose salary does not exceedRs10000/- per
month are covered under this act. When employees are registered with ESI, they are entitled
to get the following benefits from ESI: -
Sickness Benefit
7 days full pay or 14 days half pay sick leave can be availed by the employees at any time. If
more than 30 days leave is required, medical certificate from an authorized medical attendant
should be produced.
Trade Union
There are three trade unions in SILK, they are:
INTUC (Indian National Trade Union Congress)
CITU (Centre Of Indian Trade Union)
Independent
MARKETING DEPARTMENT
SENIOR MANAGER
The scope of this department is to cover all the products of the company sold directly to
customers against order or through approved dealers/distributors appointed by the company.
Overall responsibility for marketing policies rests with GM, coordination of commercial
function including marketing. This function rests with SMM.
Marketing Procedures
This department also does marketing of products. In two ways, the department does its
function. Firstly, responding to tenders and quotations as per the specification and
requirements. Secondly, with the support of Kerala State Govt. thirdly, by counter sales. The
company has distributors and dealers in Chennai, Mumbai, UP, etc. Dealers and distributors
do the advertisement jointly. Indian Electrical & Electronic Manufacture Association
publication magazine and other technical magazine are the main source of advertisements.
Sales promotion
Steel Industries Kerala Limited provides various sales promotion schemes to its dealers and
customers for increasing sales and to maintain current clients. Such includes dealers meet,
providing diary etc.
Sales promotion includes all those functions which have to do with the marketing of product
and all other activities designed to increase and expand the market.
Invoicing.
Payment collection and filing excise return in respect of meters and contractors.
Payments follow up in respect of starters, scrap, and other products.
FINANCE DEPARTMENT
Finance refers to money or funds available to a firm. A business needs at every step to start a
business, to operate it and to expand or modernize its operations. Finance is required to bring
a business into existence, to keep it alive and to see it growing. The management of finance is
essential for the success of the business. Finance manager is the head of the finance
department. He looks after the budget, finance posting and audits of accounts. The senior
officer accounts take charge to investigate the day –to-day affairs of the financial of the
company. The senior officer establishment deals with calculating employee’s wages provide
provident fund, ESI etc. The cost section prepares cost sheet and evaluate job card. There is
an internal audit section that deals with verification of accounts.
Tax:
Steel Industries Kerala Ltd must pay the following taxes: -
Income tax.
Sales tax.
Excise duty.
Educational cess.
Finance Functions:
Keeping personnel files of employees relating salary computation and annual increment.
Prepare profitability, trend, reports, and wage analysis.
Making bank statements.
Policies
Job Card:
It is used to calculate the quality of products individual production time. The important
registers maintained by the finance are given below:
Purpose Journal.
Sales Journal.
Payroll.
Sales:
Invoice generation.
Billing
Collection
Debtor’s ledger.
Advance (DD)
Cash and delivery (COD)
PRODUCTION DEPARTMENT
In every organization, production department carries the main function i.e., production. Some
companies produce various products and some a single product. Steel Industries Kerala Ltd is
a company, which produces storage tanks and bridge beams. For this they have a full-fledged
manufacturing unit. Production is the conversion of raw materials into end products by using
the process, machines, men, tools, and so on. It is the process by which goods and serviced
are department has an over control on the production department. The production department
has an overall control on the production function and maintenance of the machines.
Functions
Objectives
Assembly Procedure
In this unit some components are required for meter assembling. It has
Press shop
T&D shop
Lathe Room
Platting
Raw Materials
Mild steel plate
Angles
Beams
Channels
Round rod
Square rod
Square pipe
Round pipe
Welding electrode
Catching electrode
Brazing rod
Process Diagram
Painting Stocking
This department is concerned with checking the quality of products made in the company. At
each stage of production, the quality of the product is checked. Before it becomes the final
product, it is cross checked.
Quality Policy
“Steel Industries Kerala Ltd and its employees are committed to develop, manufacture and
marketing of Storage Tanks, Airplane Hangers and Bridge Beams, which ensuring customer
satisfaction of product and services through continual improvement of effectiveness of its
quality management system achieved by setting and reviewing quality objectives”.
Quality Objectives
Steel Industries Kerala Limited shall establish quality objectives at relevant functional levels
which will bring continual improvement in the functions and thereby in the organization. The
quality objective focused on the strategic advantage of the department as well as performance
improvement. The quality objectives established are realistic, quantifiable and shall set
suitable action plans. Also, the management will assign responsibilities to the concerned
managers for achieving the objectives as target in the Metrological Processor for Regulatory
Models (MPRM).
1) Customer Focus:
SILK meets customer requirements and strives continuously to meet customer expectation by
determining and reviewing customer requirements and measuring customer satisfaction.
Key benefits
Increased customer value
Increased customer satisfaction
2) Leadership:
Top management of SILK establishes and provides leadership and unity of purpose and
direction through management review meetings and provision of resources.
Key benefits
Increased effectiveness and efficiency in meeting the organization’s quality objectives
Better coordination of the organization’s processes
Improved communication between levels and functions of the organization
Development and improvement of the capability of the organization and its people to
deliver desired results
3) Engagement of People:
SILK believes that involvement of all employees is essential for the better functioning of
the organization. This is achieved by planned training as given in the guidelines for training.
Key benefits
Improved understanding of the organization’s quality objectives by people in the
organization and increased motivation to achieve them
Enhanced involvement of people in improvement activities
Enhanced personal development, initiatives, and creativity
Enhanced people satisfaction
Enhanced trust and collaboration throughout the organization
Increased attention to shared values and culture throughout the organization
4) Process Approach:
The departmental guidelines of major functions follow a process approach and include PDCA
cycle, which provides proper direction for achieving results when resources are managed as a
Key benefits
Enhanced ability to focus effort on key processes and opportunities for improvement.
Consistent and predictable outcomes through a system of aligned processes.
Optimized performance through effective process management, efficient use of resources,
and reduced cross-functional barriers.
Enabling the organization to provide confidence to interested parties as to its consistency,
effectiveness, and efficiency.
5) Continual Improvement:
Continual improvement of QMS is achieved through measurement of quality objectives
achieved, measurement of customer satisfaction.
Key benefits
Improved process performance, organizational capabilities, and customer satisfaction
Enhanced focus on root-cause investigation and determination, followed by prevention
and corrective actions
Enhanced ability to anticipate and react to internal and external risks and opportunities
Enhanced consideration of both incremental and breakthrough improvement
Improved use of learning for improvement Enhanced drive for innovation
Key benefits
Improved decision-making processes
Improved assessment of process performance and ability to achieve objectives
Improved operational effectiveness and efficiency
Increased ability to review, challenge and change opinions and decisions
Increased ability to demonstrate the effectiveness of past decisions
7) Relationship management
SILK maintains beneficial and a mutual relationship with supplier.
Key benefits
Enhanced performance of the organization and its interested parties through responding
To the opportunities and constraints related to each interested party
Common understanding of goals and values among interested parties
Increased capability to create value for interested parties by sharing resources and
competence and managing quality-related risks
A well-managed supply chain that provides a stable flow of goods and services
SILK sustain success when processes are managed as one coherent quality management
system.
A key focus area of the new ISO 9001 standards is to inculcate risk management into an
organization’s day-to-day activities. The end goal is to make business processes seamless to
ultimately deliver customer satisfaction. Risk has always been implicit in the ISO 9001 standards,
but “risk-based thinking” is now explicitly defined, making preventive actions part of one’s daily
routine. The new standard requires organizations to support the creation and implementation of
corrective actions (to manage incorrectly qualified risks), as well as preventive actions (to address
potential risks and non-compliance violations).
Determine the risks that may impact the organization’s ability to meet objectives
Performance measurement and analysis requires organizations to incorporate data from various
quality sources, such as audits and inspections, as well as other quality management systems.
Organizations are also expected to keep supply chain risks in check, by identifying high risk
suppliers, assessing their risk impact and likelihood, and tracking their risk profile at regular
intervals.
Quality Assurance
The SE Quality Assurance oversees quality checking of the raw material samples. The quality
assurance department also checks quality of incoming raw materials and the products in
process. Inspections of finished goods are done by AE inspection. All meter products in the
company are handed over to sales department. The sales returned meters are checked and
corrected here is a commitment toward Total Quality
ISO 9001:2015.
ISO 9001:
Management readiness.
Customer –Supplier partnership.
Environment scanning.
Existing system.
Strategic planning
TQM training.
Disciplined system implementation.
Process enhancement.
Performance evaluation.
Continuous improvement.
PLANNING DEPARTMENT
Planner
Charge 2 and
The objective of this department is to achieve monthly target as per production program
issued from marketing department. SMW has the overall responsibility of this department. He
is responsible to the following:
COMMERCIAL DEPARTMENT
Overall responsibility for marketing policy rests with GM. Coordination commercial function
including marketing. Commercial Department include sales department also.
Procedures:
The company markets its products in 3 ways. Firstly, responding to tenders and quotations as
per customer requirement and specification. SMM shall consolidate the requirements of the
product, taking into consideration the customer requirements, stated or unstated, statutory and
regulatory requirements or any other additional requirements determined by the company, if
any, including requirement. He shall prepare note incorporation the above requirements and
submit the same to the Apex Management for review and approval. Secondly, through
approved dealers or distributors. Order for SILK standard products is normally handled
through dealers. Changes occur in the case of specifications additional features or standard
products.
Thirdly, it’s through counter sales. When a customer approaches directly to purchase the
product of the company, he has to fill up the order format and if his requirement is in line
with the company specification, company registers the order and sales is affected.
The function of this department also includes handling, storage, packaging, preservation and
delivery of finished products.
PURCHASE DEPARTMENT
This department deals with the purchase of raw materials from various sources. In Elite, raw
materials are purchased through inviting tenders from suppliers 100% of raw materials are
purchased from outside suppliers. Production department gives order to the purchase
department to purchase raw materials. The main raw materials are aluminium sheets,
aluminium road, steel sheet, steel parts, copper sheets and copper parts.
Purchase Policy:
SILK has a purchase policy to purchase raw materials in right quantity and quality aright
time, at right place from a right source. The source of materials is selected by checking the
samples collected from different suppliers. Acceptance of sample can be done as per the
recommendations from the quality assurance department. If the samples are qualified, the
criteria the suppliers can be included in the list of qualified suppliers. Tenders should be sent
to qualified suppliers only. They only have the ability to provide bulk of raw materials of the
company. Raw materials required for the company as follows,
Raw materials.
Components.
Consumables.
Tools.
Stationeries.
Capital goods.
Sub-assemblies.
Services.
Spare parts.
The responsibility of purchasing material rests on the SO purchase. He is responsible for
procurement component and raw materials.
Purchase procedures:
STORE DEPARTMENT
SMW is the overall charge of stores. Store assistants have the individual responsibility
relating to all operations of the respective sub-stores and to keep the records properly. The
duty of assistants is to count the quantity of goods. There are also trainees.
Receiving material/accounting.
Issue of materials.
Items of repair/rectification/calibration/refilling sub assembly/receipt of item for outside
issue.
Inventory management.
Procedure:
For making the function of store department more effective, the store is divided into different
sub-stores, namely:
General store.
Raw material store.
Electronic store.
Starter store.
Tool store.
Stationary store: The main objective of store department is the materials to be stored in
proper places with proper accounting. Storage is done under preserved condition whenever
necessary. Identify items, which deteriorate quality from past experience.
SAFTEY DEPARTMENT
Every organization must have a safety department for the safety of workers. Though the
frequency rate of accidents is comparatively low, the management is keen to take interest to
reduce the accidents as far as possible by engineering methods and personnel equipment’s at
inevitable stages.
Communicate to the top management regarding safety aspects. Safety steward will be
entrusted with the responsibilities of continuous watchfulness. Persuasion and correction of
fellow employees to enable safe methods of work being is adopted. In addition to the above,
award of rolling shield for safety and cleanliness was introduced during the year 1983 in this
unit. The rolling shield will be awarded to sections that maintain goods, safety conditions of
working and maintain cleanliness.
Primary objective
The primary objective of the study is to examine the impact of quality management system
on organizational performance in Steel Industries Kerala Limited.
Secondary policy
To analyze the need of quality measures for the products and services to enhance the
customer satisfaction.
To understand the strategy adopted to confront the challenges faced by the company.
The research methods in general are discussed and the types of research methods suitable for
information systems research are explained. The differences between the qualitative and
quantitative research methods are elaborated upon. Then the research method, that is, the
actual data collection and data analysis method is described, and justified. Case study
research method is combined with grounded theory research method for document analysis of
archival data that was accessed via the Internet.
Research methodology is the backbone of any research. Establishment of sound research plan
and design is inevitable part of good research. It means the way one researcher select his
sample size, method of data collection, various tool used for studying and analyzing the
problem with certain objectives and goals in the view.
This study has adopted a non-probabilistic sampling strategy. Purposive sampling method
was used to select the interviewee’s and respondents of the questionnaire. Purposive
sampling technique, also called judgment sampling, is simply put, the researcher decides
what needs to be known and sets out to find people who can and are willing to provide
information by knowledge or experience. Accordingly, from the total of 145 permanent and
contract employees, 81 respondents and 11 interviewees had significant role in designing,
planning, implementation, controlling and evaluation of the QMS system has been selected.
Table 1.3.4.1
An explanatory research design has been employed to identify whether there is impact on
organizational performance as a result of ISO 9001:2015Quality Management System (QMS)
implementation at Steel Industries Kerala Limited (SILK). This study followed mixed
research approach. The quantitative data collected through questionnaire was manipulated to
answer questions posed on the impact of ISO 9001:2015 QMS within the measurable
variables and with an intention to explain and predict the existing phenomena. The qualitative
data which has also been collected through interview from target individuals was analyzed
qualitatively to explain the Quality management System on organizational performance of the
Steel Industries Kerala Limited.
The research is required to complete within the time period from 20/12/2019 to 18/1/2020.
Data source refers to the source from which the data are collected for the study. Data are of
two types: primary and secondary data.
Primary Data
The primary data are those data which are being collected by the researcher for the first time.
They are the information received directly from the respondent. In this study primary data
collected from the descriptive and inferential analysis of the performance measures from the
questionnaire. The source of the questionnaire data has been the employees and management
member of the company. The qualitative data which was gathered through interview from
selected top and middle management members, and experts.
Secondary Data
Secondary data are those data which has been already collected by someone else. They
include published, unpublished documents and various other data. Secondary data was
collected from Company files, Annual reports, Brochures of the company, Business journals
and Magazines.
The tools used for the data collections are: Questionnaires (paper questionnaires, a data
collection tool consisting of a series of questions, most designed for statistical analysis of the
responses used as a form of data collection), Interview (structured interviews, it is a verbally
administered questionnaire completed within a short period), Business Journals (Total
Quality Management and Business Excellence, by Dencheng Wen and Dongwei Yan,
Developing a model of Quality Management Methods and Evaluating their effects on
Business Performance by zhihai zhang and Total Quality Management practice and Total
Outcomes : Evidence from Small and Medium Enterprises by SU Rahman).
Descriptive analysis
The quality management system practices considered in this research as defined in the
standard questionnaire and discussed in the literature part are top management commitment,
supply relationship management, customer relationship management, workforce
Bivariate Correlation
Test Pair-wise correlation analysis has been made in order to identify the strength and
direction of relationship between the variables and among the constructs. Pearson correlation
coefficient was considered as parametric correlation estimation test for the variables in this
research as our assumption is the data is normally distributed and in consistent with
parametric assumptions. The pair-wise correlation test was first done on each item on the
measuring scale.
Regression analysis
Linear regression has been used to model the value of the dependent scale variables that is
business performance, product quality and operational performance, based on their linear
relationship to the predictors. The standard approach for describing the relationships in this
problem is linear regression.
The most common measure of how well a regression model fits the data is R 2. This statistic
represents how much of the variance in the response is explained by the weighted
combination of the predictors, that is, top management commitment, supplier relationship
management, customer relationship management, work force management, process
management, product or service management and quality information and analysis. The
closer R 2 is to 1, the better the model fits.
The ANOVA table reports a significant F statistic, indicating that using the model is better
than guessing the mean for the independent organizational performance.
The reliability of the items in the questionnaire the corresponding scale has been tested by
using Cronbach Alpha. This enabled the internal consistency of the measuring variables. The
validity of the variables and the information obtained has been made by making use of
relevant literature review and researcher and experts’ judgment.
The measurement items were calculated through perceptual questions on five-point Likert
scale with end points of “strongly disagree (1)” and “strongly agree (5).” There have been a
total of 68 variables grouped into 10 latent variables which can measure and reflect the
performance of the organization.
Prior to testing the research questions, the survey measures used, were examined for the
reliability and validity. In view of the characteristics of the instrument used in this study, the
inter-item reliability consistency (alpha) was used to measure its reliability. Construct validity
is determined by how well certain constructs explain the variance of responses to a set of
survey items.
a) H1: Quality Management System practices are positively correlated with Organizational
Performance in Steel Industries Kerala Limited.
b) H2: Company Performance for Quality Management System practices are positively
correlated with the Organizational Performance.
c) H3: Relationship between the variables and the constructs are positively correlated with
Organizational Performance.
The research activity covered the investigation of the impact of ISO 9001:2015 QMS on
performance. ISO 9001:2015 QMS is among the means for continual improvement of
organizational performance through the implementation of quality management standard
system. It also involves the identification of firm performance variables which could be
analyzed in the context of ISO 9001:2015 QMS implementation. As the study is focused on
the investigation of the impact of ISO 9001:2015 QMS and its implementation on the case
companies performance, organization performance and the constructs such as business
performance, product quality and operational performance has been used as performance
dimensions for the impact of the implemented QMS on the case company. Accordingly,
performance measures, operating income, sales, market share, unit cost of manufacturing,
profits, durability, reliability, perceived quality, productivity, conformance to specifications,
process effectiveness and competitive advantage has been used for the investigation of the
performance of the organization with respect to ISO 9001:2015 QMS implementation. This
study report will help the company to take more effective steps in analysis of quality
management under ISO 9001:2015 done so far. And this report can be used as a model for
other researcher while conducting their research study on the quality management under ISO
9001:2015 in the organization. Effective monitoring of ISO 9001:2015 will help the
organization to win over the competitors and to stand first in the market.
1. The study assumed that the respondents will always be truthful and correct. But this
assumption may not be true.
1.6 CHAPTERIZATION
This chapter deals with Background of the Problem, Introduction to the Company, Brief
introduction to the Research methodology, Research questions, Objectives of the Study,
Methodology and Sample selection, Research Design, Period of the Study, Sources of Data,
Tools of Data Collections, Statistical Analysis, Broad Hypothesis put for testing, Scope of the
study, Limitations of the study, Chapterization.
This chapter deals with quotes and definition of quality management system and its
performance.
This chapter deals with a logical presentation of the Imperical results, Data Analysis,
Tabulated Results, Results of Hypothesis tested, Graphs and Figures and Interpretations.
This chapter deals with Summary, Conclusion and Recommendation drawn from the study.
CHAPTER-2
LITERATURE REVIEW
Powell, 1995; Samson & Terziovski, 1999; Huarng & Chen, 2002; Kaynak 2003; Parast,
Adams & Jones, 2011; Shahin & Dabestani, 2011) quality management systems (QMS) are
business practices that may benefit companies. As several empirical studies show,
implementing QM effectively influences firm performance positively (Firms that implement
QM focus on providing more value for their customers and improving the efficiency of
processes. In this context, management system standards (MSS) have enjoyed enormous
success over the last years, in the sphere of QM (ISO 9001).
The first MSS appeared within the context of QM, and more specifically, in the sphere of
quality assurance, which according to the definition in the ISO 8402 standard, is the set of all
those planned and systematic actions applied within the framework of a Quality System, to
provide adequate confidence that a product or service will satisfy given requirements for
quality (ISO, 1994). By the end of 2010 at least 1.109.905 ISO 9001 certificates had been
granted in a total of 178 countries worldwide, which nearly tripled the number of certificates
at the end of 2000 (ISO, 2011). The aim of this paper is to put together some opinions and
results of different studies and to come with some important reasons for implementation of
ISO 9001.
Quality has become a strategic weapon, which is nowadays being widely used by companies.
A company with better quality has the tendency to have better market share than its
competitors (Awoku, 2012). According to Awoku, Rachel Yetunde-Abiodun, several
manufacturing companies have realized the importance of quality. This time, quality is a
competitive dimension for companies by which they can excel their competitors and achieve
wider market share.
There are different ways of defining quality. Today there is no single universal definition of
quality. Quality is perceived differently by different people. Yet, everyone understands what
is meant by “quality.” In a manufactured product, the customer as a user recognizes the
quality of fit, finish, appearance, function, and performance. The quality of service may be
rated based on the degree of satisfaction by the customer receiving the service.
Some people view quality as performance to standards; others view it as meeting the
customer’s needs or satisfying the customers’ (Awoku, 2012). In order to ensure total quality
in manufacturing, the definition of quality needs to be defined from customers’ perspectives.
The concept of quality management systems has existed for many decades. In the 1930s,
Walter Shewhart at Bell Laboratories inspired the use of statistics to identify ‘best practice’ in
the USA. This discovery has evolved over many years into control charts and in the US was
adopted by manufacturing industries before 1950. During World War II in the 1940s, quality
control charts and statistical techniques were deployed to monitor production process and
evaluate quality respectively (Goeff, 2001). In the 1950s and 1960s, W. Edwards Deming and
Joseph Juran saw the importance of pursuing perfection by applying quality principles and
techniques to processes and management of organizations.
With the U.S dominating world manufacturing, there was no practical interest in quality
practices. Deming and Juran were invited to Japan to lecture on statistical quality control
(Goeff, 2001). In the 1970s and 1980s, many U.S companies lost market share to foreign
competition. Foreign manufacturing companies were producing lower priced products and
better quality. As the West continued to add luxury to products in order to sell at higher
prices and increased profits, the East was busy adding quality to products in order to produce
items better and cheaper (Goeff, 2001). In order to increase quality awareness, the ISO family
standards and Malcolm Baldrige National Quality Award were established in 1987.
A Quality Management System is a set of tools for driving and controlling an organization,
considering all different Quality aspects (ISO-9000 2000) including human resources, know-
how 11 and technology, working practices, methodologies and procedures (Franceschini,
2007). According to Franceschini Fiorenzo, Galetto Maurizio and Masan Domenici a quality
system with its resources and processes should accomplish specific planned targets such as
production, cost, time, and return of investment, stakeholder’s exigencies or expectations. It
can be useful for the following operations.
In another study carried by Gotzamani et al. (2002) in Greek ISO 9000 certified
organizations, they found that organizations implemented ISO mainly for internal reasons
such as quality improvement and less in response to customer demand and pressure.
Moreover, standards contributed higher to organizations implementing ISO 9000 for quality
and performance improvement of their operations. Magd et al. (2012) carried a study in UAE
organizations and found that organizations implement ISO standards both for internal and
external reasons. Further, internal reasons were found to be more dominant than external
reasons.
Most studies have surveyed the reasons for implementation of QMS; the literature lacks in
the findings whether QMS are implemented as a catalyst to bring a change, as a separate
factor and whether QMS are really used in daily practice after implementation. It is expected
that organizations can reap maximum benefits, if they really use QMS in daily practice.
Lo et al. (2009) revealed that ISO 9000 standards implementation in US manufacturing firms
led to decrease in number of inventory days and significant improvement in overall operating
cycle time. The study shows that ISO standards indeed help in improving material and cash
flows in supply chain.
Adams (1999) did not found ISO to be statistically significant related to firm’s profitability
in the New Zealand manufacturing sector. The author cites reason for this as that managers
being more focused on conforming with procedures related to standards, rather than taking on
improvement activities, which actually help to increase profits. Huarng et al. (1999)
concluded that process and motivation affects the ISO 9000 standards performance. These
researches failed to report whether organizations implemented QMS for internal reasons and
whether organizations really used QMS after implementation.
Buttle (1997) found in an empirical study that companies implement ISO 9000 standards for
both operational and marketing benefits. The author further found positive relationships
between satisfaction and profitability, process improvement and marketing benefits (Benefits
after getting ISO certification).
Poksinska et al. (2002) carried a study on Swedish organizations and found that organizations
implement ISO standards mainly to improve corporate image and quality processes.
Moreover, companies that implement ISO standards focusing on quality improvement
benefits achieve higher overall benefits than organizations that implement ISO standards
merely for external reasons.
Martínez - Costa (2008) studied implementation of TQM Practices and ISO 9000 Standards
together, rather than separately, as done in many research studies. It was found that internal
motivation to implement ISO 9000 standards resulted in high performance, whereas external
motivation did not. Also, implementation of TQM resulted in both improved internal and
external results.
Rahman (2001) carried out a study in SMEs in Western Australia and found no significant
differences of impact of QM factors on organizational performance, except process control,
for firms with and without ISO 9000 certification.
A study done by Poksinska et al. (2003) in Swedish companies concludes that companies
merely implemented ISO 14000 environmental standards for external benefits, rather than
really committing themselves to environment protection. The study also found ISO 9000
being more important to companies than ISO 14000, obviously, because ISO 9000 contains
more number of subs - standards than ISO 14000.
Zeng, (2005) carried similar study of implementation of ISO 14000 standards on selected
Chinese industries. The results reveal that much motivation of companies was just to enter
international market, as in many cases, although other benefits were also found.
Organizations should implement ISO 14000 not only to enter market, but should understand
that these can improve environment, if put in daily use and ultimately help improve product
quality, which these research studies fail to study.
Empirical study done by Gotzamani et al. (2001) in Greek industry reveals that ISO 9000
standards indeed result in improvement in TQM areas. The standard helps to improve quality
culture and offers significant benefits to certified companies. Zakuan et al. (2012) carried a
study in Thailand automotive industry and found that implementing ISO/TS 16949
certification did not impact the relationship between TQM implementation and organization
performance measures, suggesting further research in this area. Zakuan et al. (2009) also
showed similar results. These studies indeed show that ISO standards in coordination with
TQM and other QMS may or may not result in improved performance. This may actually
vary from region to region, and from organization to organization.
Generally speaking, a management system is the way in which an organization manages the
interrelated parts of its business in order to achieve its objectives (ISO, 2017). According to
ISO, these objectives can relate to a number of different areas, including product or service
quality, operational efficiency, environmental performance, health and safety in the
workplace and many more.
The ISO 9000 standards originated in 1987 with a bulletin from the International
Organization for Standardization (Ferguson, 1996). Its purpose was to provide a series of
international standards dealing with quality systems that could be used for external quality
purposes (Aggelogiannopoulos, 2007). The other objective was the desire to provide
information to organizations about how to design their own quality systems based on
individual company marketplace needs.
The standards in the ISO 9000 series intend to be generic standards for quality management
and quality assurance. Indifferent of organization types, the standards are applied to any form
and type of organizations, which is independent to the size of the organizations or the kind of
products manufactured or services provided, in private and public organizations, including
government offices. The original ISO 9000 series consisted of five standards; namely, ISO
9000, 9001, 9002, 9003 and 9004, plus ISO 8402 (Aggelogiannopoulos, 2007).
The ISO 9000 family addresses various aspects of quality management and contains some of
ISO’s best known standards (ISO, 2017). The standards provide guidance and tools for
companies and organizations who want to ensure that their products and services consistently
meet customer’s requirements, and that quality is consistently improved.
The management system standard that has been developed with the intention ensuring the
fulfillment of customers’ needs with respect to the products and services delivered is ISO
9001 quality management system and the family standards (ISO, 2017). ISO 9001 is a
standard developed by the International Organizations for Standardization and serves as a
framework for quality organizational management systems. The standards in the ISO 9001
Quality Management System are applied intending to make sure the fulfillment of customers’
needs regarding the products and services they demand. As a result, the intention in the
concept of ISO which is standardizing certain minimum characteristics of quality
management system and achieving mutual benefits to suppliers and customers will be
entertained. It also enables to define a contractual standard between these parties where
purchasers are evaluated whether the products or services supplied by producers would
conform to customers ‘specifications and requirements (Yahya & Goh, 2001).
Whereas, Goetsch and Davis , describes QMS as a quality management system which
consists of all the organization’s policies, procedures, plans, resources, processes, and
delineation of responsibility and authority, all deliberately aimed at achieving product or
service quality levels consistent with customer satisfaction and the organization’s objectives.
When these policies, procedures, plans, etc. are taken together, they define how the
organization works, and how quality is managed, (Goetsch & Davis, 2005). The ISO 9000
series standard is perhaps the most well known quality management system (Al-Rawahi &
Bashir, 2011).
In late 2000, the large numbers of ISO 9000 quality standards were replaced by just three
standards: Namely, ISO 9000 Quality Management Systems which defines the fundamentals
and vocabulary part; ISO 9001 Quality Management Systems which deals with the standard
system requirements; and ISO 9004 Quality Management Systems which deals with the
guidance for performance improvement of the QMS Standard.
Measurement is the very crucial concept that is required before control and improvement
actions are taken place. As it is well known that ‘what you cannot measure, you cannot
manage emphasizes the importance of measurement (Hauser & Katz, 1998). Universally
measurement 15 system of an organization is the challenge of performance measurement,
which depends on the individual, or set of measures the measurement system comprises.
A factory cannot perform well on every yardstick. There are a number of common standards
for measuring manufacturing performance (Neely, 2007). Among these are short delivery
cycles, superior product quality and reliability, dependable delivery promises, ability to
produce new products quickly, flexibility in adjusting to volume changes, low investment and
hence higher return on investment, and low costs. These measures of manufacturing
performance necessitate trade-offs certain tasks must be compromised to meet others. They
cannot all be accomplished equally well because of the inevitable limitations of equipment
and process technology. Such trade-offs as costs versus quality or short delivery cycles versus
low inventory investment are fairly obvious. Other trade-offs, while less obvious, are equally
real. They involve implicit choices in establishing manufacturing policies (Skinner, 1969).
Critics of the ISO 9000 standard contend that even certified organizations produce poor
quality output (Johannsen, 1996). Indicating that certification is meaningless. However, the
right business performance measures can help to focus on the quality management system
certification process to be more efficient and result in a more effective system. The cost and
the benefits of implementing a quality management framework can be substantial.
Different researchers employ several and varied types of performance measures to assess the
organizational performance of an organization implementing quality management system.
The research on quality management implementation assessment by Kafetzopoulos,
Dimitrios P.; Psomas, Evangelos L.; Gotzamani, Katerina D. considered operational
performance, business performance and product quality as major performance measures
categorization (Kafetzopoulos, 2014). In their study, performance measures such as
reliability, durability, perceived quality, performance and conformance to specifications are
considered as performance measures 16 under operational performance dimension. Indicators
of business performance such as company sales growth, company market growth,
profitability, net profit margin, financial results and cash flow are used for their study.
Similarly, Company’s productivity, efficiency, process effectiveness competitive advantage,
and company’s ability to have access to new domestic and foreign markets are considered as
the company’s performance measures under operational performance dimension.
While conducting survey study on quality performance measurement practices in the Turkish
top 500 manufacturing companies, Ali Uyar, used 11 organizational performance measures
under the category of financial and non-financial measures. The financial measures include
itemized quality cost reporting; analysis of quality cost components; quality cost budgeting
and variance analysis; comparison of quality costs to industrial standards; and. multi-period
trend analysis of quality costs. The non-financial measures include percentage of product
reworks; rate of material spoilage; rate of defects in production output; percentage of returned
goods to total sales; on-time delivery of goods or services to customers; and. total number of
customer complaints.
A study carried in North America and Europe found out that although SCM, TQM & JIT are
different concepts, many elements of these three concepts are common and if implemented
together, they can add value to respond to competitive pressures. The study further finds out
that besides quality, supply chain relationships can significantly impact a firm’s performance
(Kannan and Tan, 2005). Research done by Kannan and Tan (2007) on operational quality in
a supply chain suggests that not only internally focused efforts on quality improvement, but
externally focused efforts with suppliers and customers effect product and service quality.
Customer service was found to have a significant impact on product and service quality,
which suggests that firms should carefully assess customer expectations.
Lin, (2005) concluded from a survey study that organizational performance can be optimized
when an organization considers its suppliers as members of value chain. Moreover, the author
found that QM practices indirectly affect business performance, where supplier participation
acts as a mediator.
Sila, (2006) carried out an empirical analysis to study state of supply chain quality
implementation in US manufacturing firms. The study found that although companies
involved their major customers in quality initiatives, they did not involve major suppliers.
Fynes, (2005) found positive effect of supply chain relationship quality (SCRQ) on design
quality, which in turn had positive effect on conformance quality and customer satisfaction.
Another research conducted by Fynes, (2005) in electronics manufacturing firms in Republic
of Ireland indicates positive impact of SCRQ on supply chain performance. Constructs
measuring supply chain relationship quality were based on cooperation, adaptation, trust and
communication with customer. The study had the limitation that it ignored the view point of
customer altogether, which is also important in supply chain. These studies suggest
considering both customer relationships and supplier relationships, and viewpoints of both
suppliers and customers, when studying the effect of relationships on performance.
Lai , (2005) found that suppliers regard stable relationships with buyers as positively related
to their commitment to quality, and this relationship is further strengthened when supplier’s
perception of certainty of supply with buyer is greater. Further, Prajogo, (2012) found
positive relationships between supplier management practices and operational performance
measures. The study found positive relationship between supplier assessment and quality
performance. Further, strategic long-term relationship and logistics integration were found to
be positively related to delivery, flexibility and cost performance.
Srinivasan, (2011) demonstrated positive relationship between partnership quality and supply
chain performance. This relationship is further strengthened in the presence of high demand
side risk. Close partnerships can lead to information sharing among supply chain partners and
can help mitigate risks.
Li, (2006) found that trust in supply chain partners and shared vision between them had a
positive impact on information quality and information sharing. The research lacks to further
find how information quality and information sharing can impact other performance factors,
but this lays a good foundation for our study.
According to previous studies in the quality arena have showed quality system elements that
impact on organizational performance. Empirical evidence also indicates that several
organizations are forced to register and implement ISO due to external pressures such as
customer needs and market related factors, and needs for improvement in process or systems,
desire for global deployment and lack of focus inside the organization (Aggelogiannopoulos,
2007; Yahya & Goh, 2001). On the contrary, there is also evidence that shows internal factors
such as improving overall company’s performance are major ones for seeking ISO
registration and implementation of the ISO management systems. Tsiotras and Gotzamani
emphasized periodic review, formal corrective actions, and process focus as key elements of
quality management systems that impact organizational performance (Tsiotras & Gotzamani,
1996). Carlsson and Carlsson identified better processes and better customer relations as
benefits of implementing ISO 9000 in Swedish companies (Carlsson & Carlsson, 1996). Lee
and Palmer cite monitoring day-today adherence to documented procedures and
understanding of the corrective action process as significant challenges (Lee & Palmer,
1999). Based on the prominence of these elements in the quality literature, the following ISO
9000 system elements have been chosen for further study in this research study.
The empirical research results by ChingI Lin and Woan Yuh Jang indicated that there is a
positive relation between ISO 9000 and business performance (Lin & Jang, 2008). They have
also 18 identified four key constructs to success in implementation of ISO quality
management systems. These were top management support, quality planning, employee
involvement and continuous improvement and were found to be a series of chain, rather than
parallel components. Michael Bell and Vincent Omachonu emphasized the implementation of
a documentation system is linked to business performance as measured by the return on
assets financial measure (Bell & Omachonu, 2011). An empirical research conducted by
Marta Casadesús and Gerusa Gime Anez on 288 Spanish Company revealed that 65 percent
of the companies which are ISO quality management system standards certified have
obtained very high levels of internal and external benefits (Casadesuas & Gimeanez, 2000).
On the contrary Abdullah M.S Al‐ Rawahi and Hamdi A. Bashir asserted that there is no
strong evidence to suggest that the motives for implementation, the process and cost of
achieving certification, the perceived benefits, and the shortcomings differ significantly
according to organization size or sector type (Al‐ Rawahi & Bashir, 2011). Their study
indicated that organizations the initiation to implement ISO quality management system
standards is not dependent on variables such as organizational size or sector type. All
organizations are motivated to implement the system standards regardless of the mentioned
factors.
Boiral (2012) concluded that ISO 9001 certification can originate both internal and external
benefits to organizations. As internal benefits, the author identified operational management
improvements (productivity, efficiency, and cost reductions), improved process and product
quality and organizational effectiveness (internal control, training, and communication).
Concerning external benefits, ISO 9001 contributes to a better customer service (increased
customer satisfaction and complaints reduction), fewer complaints with suppliers (less
inspection, improved inbound quality) and marketing advantages (improved image, sales, and
market share).
T.R. Veena and G.V. Prabhushankar, during the past two decades, organizations are finding
intensive competition and are striving hard to survive in the market. Present day, global
challenges are making companies to find new techniques and methodologies to meet the
market requirements with respect to quality, cost, and timely delivery of products. In this
paper, a literature review is made on lean manufacturing, Six Sigma methodology and ISO
9001: 2015 QMS. Based on literature review, a comparative study is made on lean
implementation, Six Sigma methodology and ISO 9001: 2015 QMS by considering the
dimensions such as objective; focus; management; organization; resource requirement;
training; framework/model and documentation and it is found that the gap exists between all
the three techniques. Based on the gap data a framework will be developed which integrates
all the three methodologies to fill the gap or meet the challenges or limitations of the above
three model. This integrated model if effectively implemented with focus on customer
requirements, improve employee empowerment creativity, and contractual obligations;
contribute to bottom line by reducing variation and eliminating waste thus improving the
process performance.
CHAPTER-3
This chapter will present the empirical data collected from the case company through
standard questionnaire, which was triangulated by interviewing the four members of top
management of the case company questions. The findings of the data collected were
analyzed and discussed thoroughly so as to meet the research objectives defined and answer
research questions posed. 81 respondents from the case company approached through
personal contact for data collection as designed in the research methodology of this research.
These respondents were requested to complete the designed questionnaire. Out of these 81
respondents, 76 respondents agreed and responded, resulting in a response rate of 93.83
percent.
There was a relatively greater variation in the response of the respondents on this question
with standard deviation value of 1.187. The next relatively variable response was indicated in
the implementation challenge of the quality management system for the question “Gaining
workforce commitment to QMS implementation was a problem.” Here, there was also a
relatively greater variation in the response of the respondents with standard deviation 1.046.
The response variation about the mean of the remaining items score result was about to 1
standard deviation or below 1.
The quality management system practices considered in this research as defined in the
standard questionnaire and discussed in the literature part are top management commitment,
supply relationship management, customer relationship management, workforce
management, process management, product or service design and quality information
analysis.
As defined in the methodology of this research and discussed in the literature part, the
performance measures which can reflect the company’s performance considered in this
research are business performance, product quality and operational performance variables.
Pair-wise correlation analysis has been made in order to identify the strength and direction of
relationship between the variables and among the constructs. Pearson correlation coefficient
was considered as parametric correlation estimation test for the variables in this research as
our assumption is the data is normally distributed and in consistent with parametric
assumptions. The pair-wise correlation test was first done on each item on the measuring
scale.
Profile of respondents
After the standard questionnaire had been tested for the content validity, it has been
distributed to the 81 respondents. Fortunately, all questionnaires were complete. Hence the
data collected from 76 respondents were used for analysis.
Table 3.1
Interpretation:
From the above table it is found that respondents with, 21.1% (16), 55.3 %( 42) and 23.7 %
( 18) were diploma holders, BA/BSC professionals and masters and above in their
educational background.
Table 3.2
Interpretation:
From the above table it is found that, majority (44.7%) of the respondents has work
experience of 26 to 40 years. The minimum respondents work experience is two years and the
rest of 14.5% (11 respondents) were female respondents.
Table 3.3
QI5 76
8 Business Performance BP1 0.910 76
BP2 76
BP3 76
BP4 76
BP5 76
9 Product Quality PQ1 0.899 76
PQ2 76
PQ3 76
PQ4 76
10 Operational Performance OP1 0.853 76
OP2 76
OP3 76
OP4 76
OP5 76
OP6 76
OP7 76
11 Implementation Challenges IC1 0.746 76
IC2 76
IC3 76
IC4 76
IC5 76
IC6 76
Interpretation:
From the above table it is found that, the average responses for majority of the items, which
are above the mean value of the measuring scale. The respondents agreed that many of the
variables under discussion were observed greater than the mean score of 3.0. Among the
constructs to be discussed in this research, the quality management implementation
challenges were relatively stronger. Gaining the work force commitment was slightly a
problem in the company during the course of the QMS implementation process. The highest
standard deviation was observed in the top management commitment construct for the
variable “In your organization, strategic decisions are affected by top management.” There
was a relatively greater variation in the response of the respondents on this question with
standard deviation value of 1.187. The next relatively variable response was indicated in the
implementation challenge of the quality management system for the question “Gaining
workforce commitment to QMS implementation was a problem.” Here, there was also a
relatively greater variation in the response of the respondents with standard deviation 1.046.
The response variation about the mean of the remaining items score result was about to 1
standard deviation or below 1.
Descriptive analysis
Table 3.4
Valid N 76
Interpretation:
From the above table it is found that, the minimum score value of constructs are below the
mean value (3.0). Whereas the maximum mean value for all is greater than (4.67). The mean
average value is also greater than the average value (3.0). And the deviation about the
average mean value is less than 0.63531 (Standard Deviation). This indicates the respondents
agree the quality management system practices had positive effect on the performance of the
organization in a relatively small variation.
Table 3.5
Descriptive analysis of major organizational performance constructs
Interpretation:
From the above table it is found that the minimum score value for all constructs is about
(2.0), whereas the maximum mean value for all is the maximum value in the measuring scale
is (5.0) The mean average value is also greater than the average value, (3.0) in all cases.
There is above average organizational performance on all dimensions of the company
performance. The deviation about the average mean value is less than 0.65290 standard units
in all cases.
(The pair-wise correlation test is done on each item on the measuring scale from (table
3.3.1.to 3.3.9) to get the final result (table 3.3).
Table 3.6
TM SR CR WM PM PSD OI BP PQ OP
TM Pearson 1
Correlatio
n
Sig .(2-
Tailed)
N 76
SR Pearson . 1
Correlatio 316**
n
Sig .(2- .005
Tailed)
N 76 76
CR Pearson .453* .545** 1
Correlatio
n
Sig .(2- .000 .000
Tailed)
N 76 76 76
W Pearson . .308** . 1
M Correlatio 678** 473**
n
Sig .(2- .000 .007 .000
Tailed)
N 76 76 76 76
PM Pearson . .296** . . 1
Correlatio 409** 393** 481**
n
Sig .(2- .000 .009 .000 .000
Tailed)
N 76 76 76 76 76
PS Pearson . .429** . . . 1
Interpretation:
From the table it is found that, at p<0.01 company operational performance is modestly and
positively correlated with top management commitment (r=0.458), supplier relationship
management (r=0.307) and customer relation management (r=0.424). The company
operational performance is also moderately and positively correlated with work force
management (r=0.508), product management (r=0.524), product or service design (r=0.510)
and quality information analysis (r=0.537).
Table 3.6.1
Sig. (2-tailed)
N 76
SR2 Pearson Correltion . 1
414**
Sig. (2-tailed) .000
N 76 76
SR3 Pearson Correltion .127 . 1
408**
Sig. (2-tailed) .273 .000
N 76 76 76
SR4 Pearson Correltion .277 .167 .130 1
Sig. (2-tailed) .015 .149 .261
N 76 76 76 76
SR5 Pearson Correltion . . .227* . 1
389** 422** 521**
Sig. (2-tailed) .001 .00 .049 .000
N 76 76 76 76 76
SR6 Pearson Correltion .114 -.90 .0.27 .064 .041 1
Sig. (2-tailed) .328 .437 .820 .585 .725
N 76 76 76 76 76 76
SR7 Pearson Correltion . .001 .027 . 368* .414** 1
386** 367** *
Sig. (2-tailed) .001 .990 .817 .001 .001 .000
N 76 76 76 76 76 76 76
Correlation is significant at 0.01 (2-tailed)
Correlation is significant at 0.05 level (2-tailed)
Table 3.6.2
Sig. (2-tailed)
N 76
CR2 Pearson Correltion . 1
407**
Sig. (2-tailed) .000
N 76 76
CR3 Pearson Correltion .347 .509 1
Sig. (2-tailed) .002 .000
N 76 76 76
CR4 Pearson Correltion . . . 1
327** 383** 374**
Sig. (2-tailed) .004 .001 .001
N 76 76 76 76
CR5 Pearson Correltion .123 .029 .042 .024 1
Sig. (2-tailed) .289 .804 .719 .836
N 76 76 76 76 76
CR6 Pearson Correltion .160 .192 .024 .271* .115 1
Sig. (2-tailed) .168 .097 .840 .018 .324
N 76 76 76 76 76 76
Correlation is significant at 0.01 level (2-tailed)
Interpretation:
From the above table it is found that the correlation for Customer Relationship Management
is significant at 0.01 and 0.05.
Table 3.6.3
Correlations for Work force Management
Sig. (2-tailed)
N 76
WM2 Pearson Correltion .217 1
N 76 76 76
WM4 Pearson Correltion .125 .260* .266* 1
Sig. (2-tailed) .281 .024 .020
N 76 76 76 76
WM5 Pearson Correltion .096 .169 .280* . 1
390**
Sig. (2-tailed) .407 .144 .014 .000
N 76 76 76 76 76
WM6 Pearson Correltion . .288* .133 . . 1
303** 318** 313**
Sig. (2-tailed) .008 0.12 .252 .005 .006
N 76 76 76 76 76 76
WM7 Pearson Correltion . .242* .096 .119 .250* .547** 1
434**
Sig. (2-tailed) .000 .035 .408 .306 .029 .000
N 76 76 76 76 76 76 76
Correlation is significant at 0.05 (2-tailed)
Correlation is significant at 0.01 level (2-tailed)
Interpretation:
From the above table it is found that the correlation for Workforce Management is significant
at 0.01 and 0.05.
Table 3.6.4
Correlations for Product Management
Sig. (2-tailed)
N 76
PM2 Pearson Correltion .149 1
N 76 76 76
PM4 Pearson Correltion .236 .329 .246
Sig. (2-tailed) .040 .004 .032
N 76 76 76 76
PM5 Pearson Correltion .422** . .255* .
360** 521**
Sig. (2-tailed) .000 .001 .026 .000
N 76 76 76 76 76
PM6 Pearson Correltion .018 .280 .168 .301 .275
Sig. (2-tailed) .879 .014 .147 .008 .016
N 76 76 76 76 76 76
PM7 Pearson Correltion .149 . .123 .293* .246 .
369** 590**
Sig. (2-tailed) .200 .001 .292 .010 .032 .000
N 76 76 76 76 76+ 76 76
Correlation is significant at 0.05 LEVEL (2- tailed)
Correlation is significant at 0.01 level (2-tailed)
Interpretation:
From the above table it is found that the correlation for Product Management is significant at
0.01 and 0.05.
Table 3.6.5
CHAVARA, MSNIMT Page 96
A STUDY ON THE QUALITY MANAGEMENT SYSTEM ON ORGANIZATIONAL PERFORMANCE: A CASE OF
STEEL INDUSTRIES KERALA LIMITED
Sig. (2-tailed)
N 76
PSD2 Pearson Correltion .452** 1
N 76 76
PSD3 Pearson Correltion .555** .550** 1 1
N 76 76 76
N 76 76 76 76
Interpretation:
From the above table it is found that the correlation for Product /Service Design is significant
at 0.01 and 0.05.
Table 3.6.6
Correlations for Quality Information Analysis
Sig. (2-tailed)
N 76
Q12 Pearson Correlation .592** 1
N 76 76
Q13 Pearson Correlation .576** .662** 1
N 76 76 76
Q14 Pearson Correlation .509** .558** .595** 1
N 76 76 76 76
Q15 Pearson Correlation .472** .516** .507** 500** 1
N 76 76 76 76 76
Correlation is significant at 0.01 level 92-tailed)
Interpretation:
From the above table it is found that the correlation for Quality Information Analysis is
significant at 0.01 and 0.05.
Table 3.6.7
Correlations for Business Performance
Sig. (2-tailed)
N 76
BP2 Pearson Correlation .763** 1
N 76 76
BP3 Pearson Correlation .813 .799** 1
N 76 76 76
N 76 76 76 76
BP5 Pearson Correlation .543** .518 .619** .620** 1
N 76 76 76 76 76
Interpretation:
From the above table it is found that the correlation for Business Performance is significant at
0.01 and 0.05.
Table 3.6.8
Correlations for Product Quality
Sig. (2-tailed)
N 76
N 76 76
N 76 76 76
N 76 76 76 76
Interpretation:
From the above table it is found that the correlation for Product Quality is significant at 0.01
and 0.05.
Table 3.6.9
Correlations for Operation Performance
Sig. (2-tailed)
N 76
OP2 Pearson Correltion . 1
560**
Sig. (2-tailed) .000
N 76 76
OP3 Pearson Correltion . .342** 1
583**
Sig. (2-tailed) .000 .003
N 76 76 76
OP4 Pearson Correltion . .104 .
425** 570**
Sig. (2-tailed) .000 .372 .000
N 76 76 76 76
OP5 Pearson Correltion . .500** . . 1
536** 533** 350**
Sig. (2-tailed) .000 .000 .000 .002
N 76 76 76 76 76
N 76 76 76 76 76 76
N 76 76 76 76 76 76 76
Interpretation:
From the above table it is found that the correlation for Operational Performance is
significant at 0.01 and 0.05.
Regression analysis
The ANOVA table (Table 3.4) reports a significant F statistic, indicating that using the model
is better than guessing the mean for the independent organizational performance.
Table 3.7
Interpretation:
Table 3.7.1
Interpretation:
From the coefficients table (Table 3.4.2), the independent variable with the highest both un-
standardized and standardized coefficients is the Product Management (PM). As the same
time, it is significant at five percent level indicating that this variable contributes much to the
1st model. The other variables fail the t-statistics test premises and found to be insignificant at
both one and five percent level of significance.
Table 3.7.2
Coefficients
Interpretation:
From the above table it is found that Organizational performance as dependent variable with
the other constructs, as the t-value ranging from (1.116 to 1.982).
Table 3.8
Interpretation:
From the above table it is found that the major challenge in implementation of the quality
management system in the case company has been ‘gaining the work force commitment’
which has larger mean score value of (1.05) from the respondents’ agreement measurement
scale. The next one was ‘top management commitment.’ In addition, it is evident that all the
tested factors including The lack of ISO 9001:2015 QMS knowledge and experience,
insufficient time and limited budget were the challenge for the organization during the
implementation of the quality management system.
Quality Management System has a positive effect on the performance of the organization.
The minimum score value for all constructs are below the mean value, 3.0.
The maximum mean value for all is greater than 4.67.
The mean average value is also greater than the average value, 3.0 for all constructs.
The deviation about the average mean value is less than 0.63531, standard deviation in all
quality management system practices considered. Similarly, the minimum score value is
above the mean value for all organizational performance constructs.
The mean average value is also greater than the average value, 3.0 in all cases.
The deviation about the average mean value is less than (0.65290) standard deviation for
all performance dimensions.
At p <0.01 the pair-wise interrelationship of all variables but business performance and
supplier relationship management have positive with either weak or modest relationship.
The correlation between business performance and supplier relationship management was
positive and significant at p <0.5 but weak relationship.
The research has also asserted that the major challenges of that the company faced in the
course of the quality management system standard implementation were:
Including the case company’s top management members, there were 11 different people from
the middle management and experts as key informants which were interviewed for the
purpose of this study. The questions were 11 as depicted in Appendix.
According to the interviewees, the reason why the company implemented the Quality
management system was to increase the quality of the product, reduce defects, increase
quality information communication, increase market performance and boost customer
satisfaction. The top management members were all had the ambition to achieve the
reputability of the company there by increasing the sales and market performance of the
company through the implementation of the management system. The interviewees as well as
had diversified experience on the implementation of ISO 9001:2015 QMS. Some (five
interviewees) had full experience of ISO 9001:2015 QMS implementation beginning from
registration and gap analysis to certification and system maintenance. However, there were
also who did not have experience on the complete implementation of the management system
even though they had partial experience in the whole implementation process.
For the question, “How long you take to implement the QMS in Your Company?” the answer
of all the interviewees was similar and it was nearly one and half years. With this
understanding, the interviewer has also asked them the mandatory procedures that should be
followed in the course of implementing ISO 9001:2015 QMS. Here, there were some
variations to explain the procedures as perceived by their roles and responsibility and deep
understanding of the subject matter. From their reply, the major process which were
mentioned by all of the interviewees were, awareness creation, gap analysis, document
preparation, putting the document into action (implementation), recording, analyzing and
reporting to the management and conducting surveillance, internal, and external quality
audits and registration for certification and acquiring ISO 9001:2015 QMS certificate.
The interviewees’ perception on the benefits of the implementation of the ISO 9001:2015
QMS were mainly the increase on the sales performance of the company. They had also
perception on the improvement of organizational performance in terms of product quality,
business performance, and operational performance as well. In implementing the QMS
principles, there was some misunderstanding among the interviewees. Six of them mainly the
top management members and quality experts and heads replied that the implementation of
the QMS was based on the ISO 9001:2015 QMS conceptual model developed by the ISO
organization and the framework was perceived to be relevant to come up with the expected
level of achievements from the system implementation. The principles are imbedded in the
conceptual model of the ISO 9001:2015 QMS. Starting from awareness creation to that of
being certified and maintaining the implementation status, the principles need to be
implemented adequately so that continuous performance improvement would be
experienced. From the remaining three were part agreeing to the six ones with a relatively
better understanding on the concepts as perceived during the course of the interview, and the
other two were almost ignorant on the principles of the ISO 9001:2015 QMS and there were
a need to explain about them.
The experience of the interviewees on the steps to be followed while implementing ISO
9001:2015 QMS was learnt by asking them the question “What steps have you taken to
implement quality management systems in your organization?” there reply was more or less
similar among them. After the commitment from the management, there were subsequent
awareness creation programs at the different level of the organization, beginning from the
top management, then middle and lower management, experts and employees. Conducting
gap analysis and preparation of the quality manual, quality procedures and specifications
took the subsequent step. Implementation and follow-up of the implementation process,
reporting the implementation performance, and finally, auditing and get certified were the
major implementation steps in the process.
When the interviewees asked the question “What steps have you taken to implement quality
management systems in your organization?” almost all of them replied that ‘yes we do have.’
The QMS manual was the master guiding document containing, quality objective, quality
policy, quality procedures, instructions and specifications and the QMS map which depicted
the processes and their interaction leading to customer satisfaction.
The interviewee’ was also asked to identify their understanding about how they could
identify the existing gap from the standards requirements. They first identified the process
and resources, identify criteria and specific key performance indicators, and made sure
whether the appropriate measurement, monitoring, analyzing and controlling performance
tools and techniques were in place or not. These would indicate that they have a relatively
good understanding on how to conduct gap analysis. On the exact process of certification the
interviewees also asked “What exactly is the certification process in accordance with ISO
9001?” majority (9 out of 11) of them said that the certification process comprises
preliminary audit, preliminary assessment, gap analysis, certificate audit and recertification.
CHAPTER-4
ISO 9001 sets the requirements for a company's Quality Management System (QMS), but a
QMS is quite different from quality control. Quality control refers to checking product or
service features to verify they conform to requirements, while a Quality Management System
is about the management of the entire enterprise and its operational processes.
ISO 9001 is designed for any company (in fact, for any organization) of any size and in any
industry. This broad application results in ISO 9001 Standard being rather broad, and its
requirements rather difficult to read and understand.
ISO does not perform certifications to ISO 9001:2015. Instead, organizations engage an
independent certification body to audit their QMS implementation against the ISO
requirements. Organizations of any size can certify to this standard, including smaller ones
with no dedicated Quality resources.
ISO regularly reviews all standards to ensure they are up-to-date and continue to be relevant
for the needs of organizations around the world. The last major revision of ISO 9001 was in
2015. While that might not seem like such a long time ago, the exponential increase in the
availability of technology, products, and services for consumers, as well as the size and
complexity of the global supply chain, have meant that ISO needed to make 9001 meet
several new requirements. Customer demands on products and services, and the impact on
the brand reputations of those companies that can meet them, grow each day, and ISO 9001
needed to meet these enhanced expectations.
ISOs fundamental mission is to provide common specifications, terms, standards, and units of
measurement to organizations around the world. ISO does not provide certification or
conformity assessment. Rather, it facilitates global trade and innovation to allow every
organization in every sector from around the world to have a common language and common
expectations for everything from technology and manufacturing to food safety, healthcare,
and agriculture. ISO standards benefit organizations at the environmental, economic, and
societal level and help developing countries meet the United Nations Sustainable
Development Goals through the ISO Action Plan for Developing Countries, a program that
provides technical courses to assist developing countries in meeting international standards.
ISO has published more than 22,000 standards since its first published standard in 1951.
ISOs overall mission is built on the following core initiatives for its members:
Strengthening the links between standardization and public policy by providing thought
leadership and promoting awareness of best practices.
Identifying and building national standardization strategies by applying best practices.
Ensuring the efficient operation of their organizations while managing financial
sustainability and risk.
Ensuring participation of, and collaboration with, key stakeholders in all standardization
projects.
Increasing adherence to Good Standardization Practices (GSP) among standards experts
in every national organization and evaluating all processes to determine their alignment
with the World Trade Organization (WTO) Technical Barriers to Trade (TBT) agreement.
Total quality management is an organization-wide philosophy with its core values centered
on continually improving the quality of its product and services, and the quality of its
processes, to meet and exceed customer expectations. This means that everyone in the
organization - from top management to the employees - plays a role in providing quality
products and services to customers. Even suppliers and the customers themselves are part of
the QMS. Therefore, to achieve overall performance excellence organizations need to input
total employee involvement. Whatever you want to accomplish, unless the employees are
involved in their 230 job, nothing great can be achieved. All your best management practices
can be grounded unless the employees are with the organization’s goals and objectives. It is
the employees in an organization who differentiates between a world class organization and
an ordinary organization with both operating in the same market with the same resource.
Hence fundamental to any good management practice are ‘total employee involvement’ and
this can be achieved by providing them quality training and development. Training can be
started right from the top management as the role of top management is mandatory for the
implementation of QMS. Top management must involve and committed themselves in the
company’s vision and mission. HRD can make the people working in the organizations clear
about their goal and objectives and synchronism of the same with individual objectives and
goals. The employee involvement is brought about identification of their training needs;
offering need-based training, working out a sound wage and remuneration system based on
scientific job evaluation employing time study, motion study and method studies.
QMS and HRD integration create a situation where all the employees are proactive and
involved in their work leading to all round performance excellence. A Proactive person will
not only perform per excellence himself but also help others to achieve organization goals.
The study has found that Quality Management System is positively related to all performance
measures. QMS practices, in general, improve performance of the firm. Moreover, the study
has found that different QMS practices significantly affect different outcomes.
It has been found that supplier quality management is positively related to social
responsibility. A firm cannot contribute to the society effectively without the
collaboration among the supply chain partners. All partners in the supply chain should
comprehend the effect of their products/services on the health of the society and
environment. When suppliers have quality management systems, they are evaluated with
respect to quality and delivery performance and participate in quality training, process
improvement, and the new product development process. The synergy among the whole
supply chain will make a sense of responsibility of the society so that each partner tries to
do their best to protect the environment and reduce noise and pollution. This allows the
firm to carry out social responsibility projects for the society with more effective and
efficient manner.
This study has an extensive review of literature about quality and its concepts, approaches of
quality gurus, QMS tools and techniques, the quality models, implementation of QMS in the
world and in India, HRD its concept and importance, research that has been carried out in the
field of TQM and HRD.
After extensive literature review and analysis of the data collected from the sample
organizations research concluded that most of the organizations now changed their mind set,
instead of following the traditional production oriented approach now they are focusing on
companywide implementation of QMS. They are not only focusing on hard aspect of the
organizations but also on soft aspect also that is “human being” and HRD plays an important
role in QMS implementation.
After in depth interview from top management and general employees it was found that all
well-known companies who already world class leaders in their respective fields. Through
QMS implementation their top management are very well aware of QMS principles and
practices, they know why they are practicing certain QMS tools and techniques and how they
are getting benefits from it whereas, SMEs and some of the big firms middle and lower level
employees have inadequate knowledge of QMS principles and practices and its impact,
though they responded positively when asked in a simple language this may be because of
either organizations implement QMS but not spread its awareness throughout. The company
is not efficient to train their lower and middle level employees about QMS, Organizations
need to follow companywide communication framework, and have to create an atmosphere
of transparency, mission and vision of the organizations.
It should be communicated properly among all the employees and for total employee
involvement, quality training and education programmed should be provided to achieve the
goals of the organization.
Unless and until all the employees would not feel responsible for their job they would not be
able to give their total commitment and involvement therefore this is the top management
responsibility to break the barriers between the department, provide support in quality
initiatives, act as consultant, spread awareness, continuously upgrade the knowledge and
skills of their employees through proper training and development programs, making
necessary organizational arrangements for QMS implementation.
Employee training is fundamental for many QMS programs such as the adoption of new
quality concepts, the set-up, and practices of customer satisfaction systems, the use of
statistical quality control, or the change of culture or quality control. Moreover, employees
require three basic areas of training: principles of QMS, the use of QMS tools and problem-
solving techniques.
Research found the lack of talent pool centers in Indian industries which inhibits the growth
of individual career and could de-motivate the talented employees and may force him to leave
the organization, ultimately loss of the organization. Organization should focus on creation of
talent pool centers and provide opportunity for the growth and development of talented
employees. Organization can retain their employees by providing them chance work in cross
functional area which could be their area of work interest and skilled for the same. The job
rotation policy should also act as staircase for the growth and development of the employees.
The research concluded that The QMS principles are getting appreciation in Indian industries
but still few industries view QMS as subjective approach according to their manufacturing
and servicing style. They are practicing QMS in bits and pieces which will give them
miniscule benefit. What is needed by the industries are acceptance and implementation of
QMS principles in totality.
Therefore in a total quality environment, employees need to understand the goal of customer
satisfaction, to be given the training and responsibilities to achieve the goal and to feel that
they do indeed make a difference. Training department under HR, whose system and
approaches evolved along with their overall quality system.
Training plans are (yearly) jointly designed by HR/Training manager along with the quality
engineers and strategic planning. The CEO of the company himself should take initiative to
convince, train and educate all employees' right from top management till shop floor about
advantage of QMS by providing necessary information and examples of QMS
implementation.
Policy, People and Process are three basic fundamental factors for QMS implementation in
addition with communication, commitment, and continuous improvement. These four Ps are
important in to delivering quality products and service to customers. Leadership driven policy
and strategy are necessary to aid customer, employee and favorable society results, and
besides these people partnerships, resources and processes are directed towards ultimate
excellence in key performance results.
Total quality management is people's process and involvement of the top management is a
must for its success. Hence the entire organization must have a review of total quality
management and accept to implement it in earnest. The assurance for the total commitment is
mandatory for the total quality management implementation to start. The organization should
define its value system for every employee to follow which is the vital first step towards the
attainment of the world class management system.
Finally we can conclude that organizations who want to gain customer satisfaction,
continuous improvement and return on investment have to focus on development of their
human resource. Total quality management is the concept which changes the working of an
organization totally to adopt this concept the technique involved is extensive as well intensive
education and training and must to make the total quality management system work. Even the
total quality management system warrants continual improvement at all levels thereby
needing a system constant up gradation of skill level of it's all the employees which can
happen only by continuous education and training.
The objective of the research was to investigate the impact of QMS implementation on
organizational performance of Steel Industries Kerala Limited (SILK). In literature, ISO
quality management systems implementation has been considered as a means for the
improvement of organization performance by several researchers. This research has also
assured that the implementation of ISO 9001:2015 Quality management systems have
positive impact on the organization performance as observed in the case company.
The descriptive analysis has shown that the agreement of respondents that QMS practices
improve the performance of the organization. The organizational performance measurement
dimensions, namely business 38 performance, product quality and operational performance,
all are, at p <0.5, significantly affected by the quality management system practices
investigated, that is, top management commitment, supplier relationship management,
customer relationship management, work force management, process management,
product/service design and quality information and analysis. Another finding of this research
was about the challenges in the course of the implementation of ISO 9001:2015 QMS in the
case company. The challenges were gaining the work force commitment, top management
commitment, lack of ISO 9001:2015 QMS knowledge and experience, insufficient time and
limited budget.
The results suggest that firms implement QMS for the purpose of improving operational
performance, enhancing customer satisfaction and portfolio, and increasing market and
financial performance which are the primary reasons of QMS practices. Results also have
shown that the reasons of acquiring the ISO certification(s) or the quality/supplier award
of the firms are the same as the reasons of the QMS practices. Therefore, acquiring the
ISO certifications contributes to successful QMS practices. ISO certification for the
purpose of advertisement and marketing gimmick prevents the firms from implementing
the QMS practices resulting in insignificant or negative effects on performance of the
firm. In addition, certified QMS firms can get more recognition and credibility in the
market than non-ISO-certified QMS firms.
4.1 Recommendations
From the conclusions of the research findings, the following recommendations were
forwarded:
Top management commitment is an essential practice that companies which intend to
implement ISO QMS should ensure its existence in their organizations.
Prior to implementation of ISO QMS, companies should adequately train their employees
about the process of implementation so as to acquire the necessary knowledge and
experience.
It is also necessary to gain the workforce commitment in the course of implementation.
As a result, the companies implementing ISO QMS should motivate their employees with
appropriate means of motivation scheme.
Companies implementing QMS should allocate the necessary budget to run the
implementation of the system standard.
It is also recommended there has to be sufficient time to implement the quality
management system efficiently and effectively.
The company is currently in a position that it can perform its production processes in a
better way than before and as a result achieve better organization performance in terms of
product quality, business performance and operational performance.
To sustain this operational and production effectiveness it should further maintain the
continuous assessment and consequent revision and update of the QMS implementation
process. This is because the QMS standard is updated and revised at least every five to 39
seven years and the system requirement urges to make successive assessment, revision,
and update.
Quality management System is an organization-wide philosophy with its core values
centered on continually improving the quality of its product and services, and the quality
of its processes, to meet and exceed customer expectations. This means that everyone in
the organization - from top management to the employees - plays a role in providing
quality products and services to customers. Even suppliers and the customers themselves
are part of the QMS. Therefore, to achieve overall performance excellence organizations
need to input total employee involvement. Whatever you want to accomplish, unless the
employees are involved in their job, nothing great can be achieved.
All management practices can be grounded unless the employees are with the
organizations goals and objectives. It is the employees in an organization who
differentiates between a world class organization and an ordinary organization with both
operating in the same market with the same resource.
Hence fundamental to any good management practice are ‘total employee involvement’
and this can be achieved by providing them quality training and development. Training
can be started right from the top management as the role of top management is mandatory
for the implementation of QMS.
Top management has to involve and committed themselves in the company’s vision and
mission. HRD can make the people working in the organizations clear about their goal
and objectives and synchronism of the same with individual objectives and goals.
The employee involvement should brought about identification of their training needs,
offering need based training, working out a sound wage and remuneration system based
on scientific job evaluation employing time study, motion study and method studies.
The key to customer satisfaction has to go beyond the concept of product quality or small q.
For customer satisfaction is the adoption of the big Q or total quality management. ISO 9000
is an international standard on 'quality management system' aimed towards customer
satisfaction is a part of TQM. TQM goes much beyond quality control department or product
quality and embraces in its fold all functions including marketing, production, materials,
personnel, and even finance. Hence organizations need to focus on big 'Q'.
The adoption of PDCA cycle leads to adopt the concept of process approach, which is a total
shift from product approach to process approach. If the process is correct and within control,
the product and services cannot be defective. The PDCA cycle focuses on continuous
improvement and elimination of errors. Since the basic three hard factors men, machine and
materials are more or less same month after month and if you keep on eliminating your
mistakes and deviations every month and do not allow them to repeat trough PDCA cycle,
you are automatically on a path of continuous improvement.
To hold the gain i.e. to ensure that the improvement does not fall back to original situation,
the organization function should be sound enough to permanently absorb the improvement in
its system. QMS creates a customer- oriented organization with process- orientation and
focus on continuous improvement. Every failure is analyzed to find out the root cause and
take corrective and preventive actions so that it is never repeated again. The QMS holds all
the gains out of the improvements and does not allow the organization to slip back to the old
inferior performance. It creates an environment where its customers as well as the employees
are fully satisfied.
For QMS to be successful, only the involvement of employees is not enough. Top
management commitment is essential for QMS to start, unless and until top management are
not convince and committed no one can push QMS. Top management need to understand the
change required for the quality performance of the organization. Therefore, they have to take
a step forward to initiate TQM in the organizations, which can be start by creating quality
council to decide and implement all the vital decisions. The members of quality council
should be head of the various functions with the CEO as the chairman. They have to make
strategies and policies aligned with QMS principles and have to communicate company wide.
This is top management responsibility to provide an appropriate environment for QMS
implementation. Top management should declare vision and mission of the organization and
it should reach up to each employee.
Welfare of employees should be the prior issue among the managers in an organization.
Since employees are considered to be the greatest asset in any organization, their welfare
must be given preference by the management. Proper healthy and hygienic working
conditions and a cohesive environment must be provided to them which could motivate them
for exhibiting better performance at work. The work life of the employees should be of good
quality so that they could feel comfortable at work and a sense of belongingness would be
developed among them, enabling them to perform in an organized and optimum manner.
Providing good welfare to employees may be a costly decision, but the long-term benefits are
immense. It is one way of complying with the law, thus ensuring that an employer avoids
legal issues. It allows a company to retain its good and skilled employees for long periods of
time. Employees work well in workplaces where they are treated well and respected. Good
welfare also helps to create a good company image for a particular employer.
The total quality management system is based on the principle of rewarding the performers
after their identification and training and educating the non-performers to upgrade their skills
level. TQM tools like Kaizen Gemba, quality circles etc. believe in rewarding a contributing
person. Recognition and awards should not lead to bitterness amongst employees and should
not de-motivate them. Hence, before venturing into the recognition program, the management
has to give considerable thought and then only finalize the strategy for recognition and
awards. Rewards and recognition is the major driver in employees’ performance. At the end
of the day it is the money or acknowledgement that matters the most to workers. They feel
that whatever they have been doing is meaningful and they have awarded fairly. So rewards
and appreciation can satisfy the employees and would aid in their commitment towards the
company.
Empowerment
should be given full charge of their work i.e. employee empowerment. The employees must
be 145 involved in decision making so that bosses know what to do or how to do in order to
expand the business as this not only ads in designing practical programs but provides the
unity and harmony in the concern. Employees know that they are given importance and feel
encouraged and enthusiastic about the work.
The purpose of performance appraisal is to let employee know how they are doing, and
provide a basis of promotions, salary increases, counseling. Many supervisors look at
appraisals as one of the unpleasant duties they must perform. Conversely some supervisors
feel it a pleasant duty and can reveal how effective an employee is in contributing to the
success of organization. Every effort should be made to avoid errors in performance
evaluations. An unfair evaluation could cost an organization a valuable employee.
Suggestion System
Suggestion systems are designed to provide the individual with the opportunity to be
involved by contributing to the organization. The key to an effective system is management
commitment. It is the responsibility of management to make it easy for employees to suggest
improvements. Stimulating and encouraging employee participation starts the creative
process. Five Ground Rules for Stimulating and Encouraging Suggestion System are:
5. Reward the idea with published recognition so that everyone knows the value of
contribution.
Employee satisfaction
Employee satisfaction is also an important factor in the European Model for Total Quality
Management (1994), the Deming Prize (1996), and the American Baldrige Quality Award
(1999). Ted (1996) stated that employee satisfaction is as important as customer satisfaction,
as Ishikawa (1985) stated that a firm whose members are not happy and cannot be happy does
not deserve to exist.
5. Flexible & innovative work environment that recognizes the value of the Human
Resources.
Elimination of departmental barriers Organizations all over the world focuses on QMS for its
sustainability and success but quality can no longer be viewed as the responsibility of one
department it is a company-wide activity that permeates all departments at all level and
human resources holds the key to sustained quality improvement. Consequently, the HRD
can potentially play a critical role in an organization’s QMS efforts. Organizations should
focus for creating pool of talent centers and job rotation policies which will recognize the
skills of the employees and provide better opportunity for their career growth. Hence leads to
employee motivation and retention in the organization.
BIBLIOGRAPHY
Reference
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ANNEXURE
QUESTIONNAIRE
A. Demographic Characteristics
26-40
The following items which are related to the organizations performance as measured from the
contribution of ISO 9001 QMS implementation. It is based on the degree of agreement as
rated from 1 to 5 from strong disagreement to strong agreement. Accordingly, please rate on
the scale 1 to 5, with 1= strongly disagree; 2= disagree; 3= neither agree nor disagree; 4=
agree; 5= strongly agree, and please tick sign in the corresponding cell provided.
Measurement Scale
Code Items 1 2 3 4 5
problems
WM 2 Your organization provides feedback to
employees on their quality performance
WM 3 Employees are also involved in quality
decisions in your organization
WM 4 Supervisors encourage teamwork in your
organization
WM 5 Quality-related training is given to
contractual employees
WM 6 Quality-related training is given to managers
and supervisors in your organization
WM7 Your organization provides quality training
as “total quality concept” (i.e. philosophy of
company-wide responsibility for quality)
V Process Management
VI Product/Service Design
production of product/service
PSD 2 Various departments of your organization
such as marketing, manufacturing, and
purchasing, etc. coordinate in the
product/service development process
PSD 3 In your organization, manufacturing and
quality personnel are involved in the
product/service development process
PSD 4 Your organization takes effort for clearly
needed specifications in the design process
IX Product Quality
X Operational Performance
XI Implementation challenges
ANNEXURE- B
Interview Questions
1. Why you are interested to implement ISO 9001:2015 QMS in your Company?
2. What is your ISO 9001:2015 QMS experience? Have you taken a company through
registration?
4. Could you please explain to me the Mandatory procedures required by ISO 9001:2015?
7. What steps have you taken to implement quality management systems in your
organization?
10. Can a Company actually become efficient using ISO 9001 Certification?
11. What exactly is the certification process in accordance with ISO 9001?