FP Last Sem

A STUDY ON THE QUALITY MANAGEMENT SYSTEM ON ORGANIZATIONAL PERFORMANCE: A CASE OF STEEL
INDUSTRIES KERALA LIMITED
CHAPTER-1
INTRODUCTION TO THE STUDY
CHAVARA, MSNIMT Page1

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.
It is an opportunity for the students to build a solid understanding of the fundamentals of

business and organizations performance such as: Economic model of the business,
Competitive positioning and Strategy execution. In the real life environment, students will
able to develop their ability to assess performance, interpret trends, explore the consequence
of change and to make better decision as managers.
There is a number of learning outcome of which the student doing the industrial project are:
Integrated theoretical knowledge in the industry
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.
Analyze complex/technical projects or problems
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.
Communicate effectively on complex/ technical activities
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.

QUALITY MANAGEMENT SYSTEM
Quality Management System is a collection of business processes focused on consistently

meeting customer requirements and enhancing their satisfaction. It is aligned with an
organizational purpose and strategic direction (ISO 9001:2015). It is expressed as the
organizational goals and aspiration, policies, processes, documented information and
resources needed to implement and maintain it.
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.
According to the International Organization for Standardization (ISO), quality management

system (QMS) is defined as coordinated activities to direct and control an organization about
quality. It is a standard developed by the International Organizations for Standardization and
act as a framework for organizational quality management systems. The framework is
popularly understood by organizations and governments around the world and consequently
used as standard for management systems.
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 based on the plan-do-check-act-methodology and provides a process-

oriented approach in documenting and reviewing the structure, responsibilities, and
procedures required to achieve effective quality management in an organization. Specific
section of the standard contains information’s of many topics such as:
 Requirements for a QMS, including documented information, planning, and determining

process interactions.
 Responsibility of management.
 Management of resources, including human resource and organization’s work
environment.
 Product realization, including the steps from design to delivery.
 Measurement, analysis, and improvement of QMS through activities like internal audits
and corrective and preservative action.
QUALITY MANAGEMENT SYSTEM ISO 9001: 2015
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.
Implementing a quality management system affects every aspects of an organization’s

performance such as:
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.
Implementation of best practices and process improvement
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.
Increased financial performance
Investment in Quality Management System is rewarded by improved financial performance.

It is observed that the financial performance of the companies that obtained ISO 9000 Quality
Standard Certifications was improved significantly, compared to the other companies.
Increase in market share
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.
Improvement in internal communication
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.

Risk Based Thinking
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.

1.1 BACKGROUND OF THE PROBLEM
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.
The practices of QMS are expected to bring improvement in Business Performance by

improving information quality, operating performance, product quality, service quality etc.
Kaynak (2003) identifies positive relationship between various TQM Practices and examines
their direct and indirect effect on quality performance, financial & market performance,
through a proposed hypothesis model. Most of the studies have in fact identified relationship
between various Quality Management constructs and impact of each on the performance
measures. The literature lacks in the research of overall impact of QMS on business
performance, through improvement in other factors and studying overall impact of
implementation of QMS on various performance factors.
THE PURPOSE OF THE PROJECT WAS TO STUDY THE QUALITY MANAGEMENT

SYSTEM ON ORGANIZATION PERFORMANCE: A CASE OF STEEL INDUSTRIES
KERALA LIMITED.

1.2 INTRODUCTION TO THE COMPANY
1.2.1 INDUSTRY PROFILE
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
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:
 Steel companies are plagued with huge debts.

 Lack of domestic demand. This is a major concern
 Low quality of metallurgical coke for blast furnace iron making.
 High input costs.
 Cheap imports from China, Korea and other countries are also a matter of concern for
domestic producers.
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).
Indian Steel Industries Production

Indian Steel Industry : Production (in Million Tonnes )
Category 2015-16 2016-17 2017-18 2018-19 2019-20
Pig Iron 10.24 10.34 5.73 6.41 5.51
Sponge Iron 22.43 28.76 30.51 34.71 37.14
Total Finished 106.60 120.14 126.85 101.29 102.06

Steel
Production

Steel industry was de-licensed and de-controlled in 1991 &1992 respectively.
 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.
Opportunities for growth of Iron and Steel in Private Sector
The New Industrial Policy Regime
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.
The Growth Profile

(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.
Import of Steel in India
Data on import of total finished steel (alloy/stainless+ non alloy) is given below for the last
five years:
Indian industry : Import of Total Finished Steel (in million tonnes)
Category 2015-16 2016-17 2017-18 2018-19 2019-20
Quality 11.71 7.23 7.48 7.83 6.77

Indian Steel Industry: Export of Total Finished Steel (in million tonnes)
Category 2015-16 2016-17 2017-18 2018-19 2019-20
Qty 4.08 8.24 9.62 6.36 8.36
Exports of steel in India
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.

 In December 2019, Arcelor Mittal completed the acquisition of Essar Steel at Rs

42,000 crore (US$ 6.01 billion) and formed joint venture with Nippon Steel Corporation.
 In February 2020, GFG Alliance acquired Adhunik Metallics and its arm Zion Steel
for Rs 425 crore (US$ 60.81 million), marking its entry into the Indian steel market.
 JSW Steel has planned a US$ 4.14 billion capital expenditure programmed to increase
its overall steel output capacity from 18 million tons to 23 million tons by 2020.
 In March 2019, ArcelorMittal was declared as the winning bidder to acquire Essar
Steel for a consideration of Rs 42,000 crore (US$ 5.82 billion).
 Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel
plant from 3 million tons to 8 million tons at an investment of US$ 3.64 billion.
Problems faced by Indian Steel Industry
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.
This resulted in a lower level of investment in technological developments. Consequently, the

industry lost its technological edge and is now way behind the advanced countries in this
regard.
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.
4. Inefficiency of Public Sector Units
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.
5. Low Potential Utilization
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.
7. Shortage of metallurgical Coal
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:
 Government introduced Steel Scrap Recycling Policy aimed to reduce import.

 An export duty of 30 per cent has been levied on iron ore^ (lumps and fines) to ensure
supply to domestic steel industry.
 Government of India’s focus on infrastructure and restarting road projects is aiding
the boost in demand for steel. Also, further likely acceleration in rural economy and
infrastructure is expected to lead to growth in demand for steel.
 The Union Cabinet, Government of India has approved the National Steel Policy
(NSP) 2019, as it seeks to create a globally competitive steel industry in India. NSP 2019
envisages 300 million tons (MT) steel-making capacity and 160 kgs per capita steel
consumption by 2030-31.
 The Ministry of Steel is facilitating setting up of an industry driven Steel Research
and Technology Mission of India (SRTMI) in association with the public and private
sector steel companies to spearhead research and development activities in the iron and
steel industry at an initial corpus of Rs 200 crore (US$ 30 million).
 The Government of India raised import duty on most steel items twice, each time by
2.5 per cent and imposed measures including anti-dumping and safeguard duties on iron
and steel items.
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.
1.2.2 INTRODUCTION TO THE COMPANY

Steel Industrials Kerala Limited (SILK) is a Public incorporated on 03 January 1975. It is

classified as State Govt Company and is registered at Registrar of Companies, Eranakulam.
Its authorized share capital is Rs. 400,000,000 and its paid-up capital is Rs. 365,586,304. It is
involved in the manufacture of basic iron and steel. Steel Industries Kerala Ltd.’s Annual
General Meeting (AGM) was last held on 28 September 2019 march and as per records from
Ministry of Corporate (MCA), its balance sheet was last filled on 31 march. Directors of
Steel Industrials Kerala Ltd are Sreeni Gopinathan Pillai, Dasan Thandamparambil,
Krishnapillai Radhakrishnan, Chandrabose Janardhanan, and Haridasan Narangathodi.
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.
At present company is mainly concentrating on the production of Storage Tanks, Airport

Hangars and Bridge Beams.
The Unit has executed many structural & civil contracts including
 Buildings and structural.

 Storage tanks, Silos, transformer tanks.
 Pressure vessels, and boiler parts.
 Transmission towers & sub-station structures.
 Material handling equipment’s.
 MS fabricated mineral separation, cement, and steel plant equipment’s.
 Fabrication and Erection of Piping.
 Airport Hangars.
 Penstock, Spiral Casting.
 Valve body.
 Hanging Bridges.
 Watch Tower.
For the following Clients
 Kerala State Electricity Board (KSEB).

 Kerala Minerals and Metals Ltd. (KMML), Chavara, Kollam.
 Travancore Titanium Products Ltd. (TTP) Thiruvananthapuram.
 Kerala State Industrial Enterprises (KSIE), Thiruvananthapuram.
 Kerala State Public Works Department, Thiruvananthapuram.
 State Water Transport Department (SWTD), Alappuzha.
 Kerala State Warehouse Corporation (KSWC), Ernakulam.
 Steel & Industrial Forgings Ltd. (SIFL), Thrichur.
 Hindustan Insecticides Ltd. (HIL), Kalamassery.

 Legal Metrology Department, Thiruvananthapuram.

 Autokast Ltd. Alappuzha.
 Collectorate Alappuzha.
 Local Bodies at Various Districts.
 Kerala Forest &Wildlife Department, Silent Valley.
 Department of light houses and light ships, Amini Dweep.
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
The main products of Steel Industries Kerala Limited are:
 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.
1. Industrial Fuel Storage Tanks
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.
Types of Industrial Fuel Storage Tanks
There are two main types of fuel storage tanks – Aboveground tanks and Underground tanks.
Above ground Fuel 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.

2. Industrial Chemical Storage Tanks
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.
Types of Industrial Chemical Storage Tanks
There are three chief types of industrial chemical storage tanks available –
 Stainless steel tank

 Polyethylene tanks,
 Fiberglass (FRP) tanks
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.
3. Industrial Oil Storage Tanks
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.
Types of Industrial Oil Storage Tanks
Floating Roof Tank
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.
Fixed Roof Tank
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 & Double Skin Tanks
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.
Open Top Tank
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.
4. Industrial Hot Water Storage Tanks
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.
5. Industrial Water and Liquid Storage Tanks
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.
Types of Water and Liquid Storage Tanks
Pillow (Bladder) Tanks
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
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 Tanks
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.
6. Industrial Plastic Storage Tanks
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.
7. Industrial Gas Storage Tanks
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.
1. Cargo Lifter Hangar
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
It is a type of enclosed structure designed to hold aircraft in protective storage. Primarily it is

used for private aircraft at general aviation airports. It is usually constructed of metal: since
this type of hangers is more economical than normal rectangular hangar, they are used for
private airplane at general aviation airports. There are two types of tee hangars:
 Standard tee hangars

 Nested tee hangar
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.
The price of a single piece is charged from Rs. 45000 to Rs.80000.
Reinforced Concrete Beams
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
DEPUTY GENERAL MANAGER
HRD FINANCE PRODUCTION PROJECT

SENIOR
DEPARTMENT DEPARTMENT DEPARTMENT MANAGEMENT
MANAGER
ASSISTANT ACCOUNTS ASSISTANT

OFFICER ENGINEER
MANAGER PROJECT
MANAGEMENT
DESIGN MARKETING STORES
DEPARTMENT DEPARTMENT ASSISTANT
ENGINEER
PURCHASE
SUNCONTRACT
DRAUGHTS ASSISTANT ASSISTANT ASSISTANT
MANAGER MANAGER
MEN ENGINEER
DEPARTMENTS
 Human resource department

 Marketing department
 Finance department
 Production department
 Quality department
 Production department
HUMAN RESOURCE DEPARTMENT
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

is the Personnel Office and an Establishment Section.
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
Statutory Labor Welfare Facilities provided (Personnel Office) in SILK.
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.
Rest Rooms &Lunchrooms
Adequate suitable rest rooms and lunchrooms (with provisions for drinking water) where
workers can eat their meals brought by them are provided.
Facilities for Sitting
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.
Drinking Water Facility
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

purpose, an electronic punching system is maintained by the Time Office.
Statutory Labor Welfare Facilities Provided (Time Office) in SILK
Working Hour
 First Shift 6.30 am to 2.30 pm

 Second shift2.30 pm to 10.30 pm
 Third Shift 10.30 pm to 6.30 am
 General Shift 8.30 am to 5 pm
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/-
First aid Appliances

First aid boxes or cupboards equipped with the prescribed contents is provided and
maintained in UEI. This is readily accessible during all working hours.
Statutory Labor Welfare Facilities Provided (Establishment Section)
Wages and Salaries

To provide wages and salaries to the employees

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
ASSISTANT ASSISTANT MANGER ASSISTANT

MANAGER MANAGER
OFFICE STAFF OFFICE STAFF

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.
The other duties of marketing department are as follows:

 Preparation and providing production program to works.
 Arranging dispatches as per schedule.
 Payments follow up.
 Customer coordination.
 Compliance of excise formalities.
 Stock maintenance.
 Arrange packing.

 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.
 Preparation, assisting and coordinating of all works connected with finalization of

accounts.
 Make internal audit.
 Formulate financial objectives.
 Scrutinize vouchers for payment.
Policies
 Keep record of account section carefully.
 Conduct inside audit regularity.
 Give promotion once in a year.
 Maintain proper books of account.

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.
Sections of Finance Departments:
The various sections under finance department are:
 Book and Budget.

 Sales
 Priced Stores Ledger.
 Costing.
 Establishment.
Book and Budgets:
 Collection of accounts from different sections.

 Preparation of trial balance and final accounts.
 Coordination with auditors.
 Helps statutory auditor.
Sales:
 Invoice generation.
 Billing
 Collection
 Debtor’s ledger.
Terms of payment for purchase are

 Letter of credit (L/C)

 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
 Planning daily production according to the annual target.

 Monitoring actual production and checking any deviation.
Objectives
 To achieve monthly production target as per customer requirement.

 To improve quality by reducing process rejection below 3%.

 Increase productivity by effective utilization of resources.

 Maintain production and discipline in the section.
 Coordination of workers and shop floor activities.
 Share information.
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

A STUDY ON THE QUALITY MANAGEMENT SYSTEM ON ORGANIZATIONAL PERFORMANCE: A CASE OF
STEEL INDUSTRIES KERALA LIMITED
Process Diagram
Raw Materials Go Down Designing
Bending Marketing Cleaning
Cutting Drilling Fitting
Inspection Checking Labeling
Painting Stocking
QUALITY CONTROL DEPARTMENT
CHAVARA, MSNIMT Page 47

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).
Quality Management Principles

Steel Industries Kerala Ltd has framed its quality policy and manages its quality policy
manage its quality system following the ten management principles of ISO: 9001:2015, listed
below.
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

 Improved customer loyalty

 Enhanced repeat business
 Enhanced reputation of the organization
 Expanded customer base
 Increased revenue and market share
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

process. It also helps to provide direction in taking planned corrective actions.
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
6) Evidence based Decision Making:

SILK takes effective decisions based on results of analysis of data. This is achieved through
the interactions in the management meeting on the performance of individual departments.
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
8) System approach to management
SILK sustain success when processes are managed as one coherent quality management
system.
9) Establish a Systematic Approach to Risk Management
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).
Here are the key steps required to manage risks effectively:
Determine the risks that may impact the organization’s ability to meet objectives
 Plan and take actions to address risks and opportunities

 Define and manage processes to identify and address the risks in organizational
operations
 Determine which risks need to be monitored, measured, analyzed, and evaluated
 Enable continuous improvement by responding to the changes in risk and opportunities

10) External provision – Manage third –party risk

There are specific requirements that organizations need to meet while outsourcing goods and
services. First, they need to adopt a risk-based approach to determining the type and scope of
controls required to manage the external provision of goods and services. They also need to
define processes and controls for suppliers, and then constantly monitor and compare supplier
scores, so as to benchmark supplier performance.
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
Management Responsibilities Regarding Quality

 Management must define and document its policy objectives and commitment to
quality.
 Ensure that it is understood and implement at all levels.
 Define responsibilities and authorities.
 Identify verification and assign to competent personnel with adequate resources.
 Appoint management representatives.
Quality System Standards
ISO - International Organization for Standardization’s
ISO 9001:2015.

ISO 9001:
 Covers management responsibility, contact review, control of design, purchase, testing

storage, etc.
 All units of SILK are ISO: 9001:2015 certified. Certification Agency UKAS management
system.
 International audit once in 6 months.
TQM Model: The Ten Essential Steps:
 Management readiness.
 Customer –Supplier partnership.
 Environment scanning.
 Existing system.
 Strategic planning
 TQM training.
 Disciplined system implementation.
 Process enhancement.
 Performance evaluation.
 Continuous improvement.
PLANNING DEPARTMENT
Senior manager work
Senior engineer work Supervisor
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:
 Ensuring targeted production.

 Authorization of annual/monthly production plan based on budget. The responsibilities of
SEW are:
 Preparation of annual/monthly production plan.
 Planning, scheduling and dispatching of job cards.
 Identifying the gap in the implementation process.
 Responsibilities of other functionaries involved are given against individual activities.
The scope of this department is:

 Planning in respect of components relating to the production of products.
 Testing the products.
 Finishing and packing the products.
 Scheduling of operations in respect of manufacture of components.
 Assembly of part and finished products.

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:
 All the purchase shall be made by purchase department.

 Bill of materials shall be given by the production department.
 Material intends in forward to purchase department against each project.
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.
Functions of Store Department
 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.
Safety precautions at SILK:

For making the functions of the safety department, SILK takes the following steps:
 Safety committee.
 Safety steward committee.
 Safety training for executive supervisor and artisans.
 Accidents investigation reporting system.
 Issue of safety equipment.
Objectives of the Safety Committee:

Objectives of the safety committee are as follows:

 Control of accidental hazards.

 Promote safety consciousness among employees.
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.
1.3 BRIEF INTRODUCTION TO THE RESEARCH METHODODLOGY
1.3.1 RESEARCH QUESTIONS
 What is the impact of quality management system on organizational performance in Steel

Industries Kerala Limited?
 What is the need of quality measures for the products and services to enhance the
customer satisfaction?
 What is the strategy adopted to confront the challenges faced by the company?
1.3.2 OBJECTIVES OF THE STUDY
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.
1.3.3 RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In its various steps
that are generally adopted by a researcher in studying his research problem along with the
logic behind them. It describes the research procedure, which has been used in the research.
Research methodology is the backbone of any research. Establishment of a sound research
plan and design is an investable part of good research. It means the way one researcher select
his sample and sample size and method of data collection, various tool used for studying and
analyzing the problem with certain objectives and goals in the view.
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.
1.3.4 SAMPLE SELECTION
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
No Departments Sample size
Respondents for questionnaire

1 Audit, Public relation & legal Services 4
2 Planning & Programming Service 1
3 IT Service 2
4 Finance department 7
5 Administration and Human Resources Department 20
6 Marketing and Sales Department 4
7 Supply Department 7
8 Research and Quality Assurance Department 10
9 Factory Operations Department 25
10 MR Service 1
Total 81
1.3.5 RESEARCH DESIGN
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.
1.3.6 PERIOD OF STUDY
The research is required to complete within the time period from 20/12/2019 to 18/1/2020.
1.3.7 SOURCE OF DATA COLLECTION
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.
1.3.8 TOOLS OF DATA COLLECTION
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).
1.3.9 STATISTICAL ANALYSIS
 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

management, process management, product or service design and quality information

analysis.
 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.
 Reliability and validity
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.
Reliability test was performed on QM practices as well as performance measures. Reliability

is broadly defined as the degree to which scales are free from error and, therefore, consistent.
This study used Cronbach’s α for measuring reliability of the instrument, and detecting
consistency of the measurement scale developed on the basis of the respondents’ responses.
The threshold value of Cronbach’s α should be at least 0.60 (Patyal & Koilakuntla, 2017) and
is considered highly reliable if it is beyond 0.70. Table 4.3 presents the initial Cronbach’s α
for each constructs and the overall 68 25 items together is with Cronbach’s α 0.933. The
value of the reliability test analysis is encouraging and acceptable for further analysis.
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.”
1.3.1.1 BROAD HYPOTHESIS
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.

1.4 SCOPE OF THE STUDY
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.

1.5 LIMITATION OF THE STUDY
1. The study assumed that the respondents will always be truthful and correct. But this
assumption may not be true.
2. Some of the respondents were less co-operative.
3. Organized authorities may be reluctant to disclose confidential matters and information’s.
1.6 CHAPTERIZATION
Chapter 1: Introduction to the study
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.
Chapter 2: Literature review
This chapter deals with quotes and definition of quality management system and its
performance.
Chapter 3: Analysis and Discussion
This chapter deals with a logical presentation of the Imperical results, Data Analysis,
Tabulated Results, Results of Hypothesis tested, Graphs and Figures and Interpretations.
Chapter 4: Summary, Conclusion and Recommendation
This chapter deals with Summary, Conclusion and Recommendation drawn from the study.

CHAPTER-2
LITERATURE REVIEW

Quality Management under ISO 9001: 2015
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.
The Concept of Quality
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.
Reasons for the Implementation of ISO Standards
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.
Implementation of ISO 14000 Standards
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.
ISO and Integration of other Quality Management Practices
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.

Brief review of QMS ISO standards
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).
According to the International Organization for Standardization (ISO), quality management

system (QMS) is defined as coordinated activities to direct and control an organization with
regard to quality. It is a standard developed by the International Organizations for
Standardization and act as a framework for organizational quality management systems (Bell
& Omachonu, 2011). The framework is popularly understood by organizations and
governments around the world and consequently used as standard for management systems.
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.
Organizational Performance Measures
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).
Nevertheless, performance measures that actually demonstrate the value of an organization’s

management systems can be difficult to develop, use, and interpret. Some organizations
simply treat the cost of implementing quality management systems as a business overhead
expense often hidden inside various budgets (Bell & Omachonu, 2011). However, the ISO
9000 quality management system and its associated industry specific standards remain
popular as evidenced by the increasing numbers of certifications awarded each year (ISO
Central Secretariat, 2008).
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.
The effect of implementing ISO quality management system on organizational performance

has been studied by different researchers including (Feng, 2008), (Lin & Jang, 2008), (Su,
2008), (Lakhal, 2006). They used different types of performance measures to assess the
impact of the quality management system on various organizations.
Supply Chain Quality Management
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.
Stanley e, (2001) found positive relationship between implementation of supplier

relationships and buyer’s ability to deliver service quality to internal customers. Also, the
study found that performance level of manufacturer played an important role in providing
service quality to customers. Tan, (1999) suggested that due to growing competition, firms
should go beyond improving just product quality. Suppliers, manufacturers and customers
need to integrate with each other to achieve growth objectives. Further, he finds that supply
chain needs to be managed effectively, and firms should pursue new markets, technologies
and improve cost and delivery performances, to successfully survive in this global
competition.
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.
Quality Management Systems and Organizational Performance
Achieving, enhancing, and sustaining competitiveness in today’s competitive environment is

dependent on providing high quality and low cost products and services in the least possible
time (Al‐ Rawahi & Bashir, 2011). Owing to this, organizations implement a number of
management tools and philosophies including quality management systems. These systems
play an important role in raising the levels of quality, safety, efficiency, reliability,
productivity, and work satisfaction, as well as reducing cost.
The effect of implementing ISO quality management system on organizational performance

has been studied by different researchers including (Feng, 2008), (Lin & Jang, 2008), (Su,
2008), (Lakhal, 2006). They used different types of performance measures to assess the
impact of the quality management system on various organizations.
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.
Lassaad Lakhal, FedericoPasin and Mohamed Limam observed there is a positive

relationship between quality management practices and organizational performance (Lakhal,

2006). Moreover, their results illustrate a direct effect of infrastructure practices on

operational performance and of core practices on product quality. According to Mei Feng,
MileTerziovski; and Danny Samson asserted that there is a positive and significant
relationship between certification practices (implementation, organizational commitment and
planning) with operational performance (Feng, 2008). However, the relationship between
these practices with business performance was found to be positive but not significant of the
variables they studied. In their study, organizational commitment to certification was found to
be most strongly related to operational and business performance as well.
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
ANALYSIS AND DISCUSSION

DATA ANALYSIS AND INTERPRETATION
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.
Following are the descriptive analysis of proposed hypothesis:
Reliability analysis test result and descriptive statistics
Reliability test was performed on QM practices as well as performance measures. Reliability

is broadly defined as the degree to which scales are free from error and, therefore, consistent.
This study used Cronbach’s α for measuring reliability of the instrument, and detecting
consistency of the measurement scale developed on the basis of the respondents’ responses.
The threshold value of Cronbach’s α should be at least 0.60 (Patyal & Koilakuntla, 2017) and
is considered highly reliable if it is beyond 0.70. Table 4.3 presents the initial Cronbach’s α
for each constructs and the overall 68 25 items together is with Cronbach’s α 0.933. The
value of the reliability test analysis is encouraging and acceptable for further analysis.
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 of major quality management practices
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.
Descriptive analysis of major organizational performance constructs
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.
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.

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
Education Qualification of the respondents
Frequency Percentage Valid Cumulative

Percent Percentage
Valid Diploma 16 21.1 21.1 21.1
BA/BSC 42 55.3 55.3 76.3

Master 18 23.7 23.7 100.0
&Above
Total 76 100.0 100.0
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

Work Experience (Year)
Frequency Percentage Valid Cumulative

Percentage Percentage
2-8 13 17.1 17.1 17.1
9-15 14 18.4 18.4 35.5

Valid
16-25 15 19.7 19.7 55.3
26-40 34 44.7 44.7 100.0
Total 76 100.0 100.0
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

Reliability analysis test result and descriptive statistics
No Constructs Items Crombach’s α N

1 Top Management Commitment TM1 0.779 76
TM2 76
TM3 76
TM4 76
TM5 76
TM6 76
TM7 76
TM8 76
TM9 76
TM10 76
2 Supplier Relationship Management SR1 0.673 76
SR2 76
SR3 76
SR4 76
SR5 76
SR6 76
SR7 76
3 Customer Relationship Management CR1 0.608 76
CR2 76
CR3 76
CR4 76
CR5 76
CR6 76
4 Work Force Management WM1 0.701 76
WM2 76
WM3 76
WM4 76
WM5 76
WM6 76
WM7 76
5 Process Management PM1 0.719 76
PM2 76
PM3 76
PM4 76
PM5 76
PM6 76
PM7 76
6 Product/Service Design PSD1 0.766 76
PSD2 76
PSD3 76
PSD4 76
7 Quality Information And Analysis QI1 0.856 76
QI2 76
QI3 76
QI4 76

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
Descriptive Statistics for quality management practices
N Minimum Maximum Average Std.

Mean Deviation
Top Management Commitment 76 2.60 4.80 3,7592 0.48640
Supply Relationship 76 2.57 4.71 3,6410 0.47609

Management
Customer Relationship 76 2.17 4.67 3,5022 0.48419
Management
Work Force Management 76 2.29 4.71 3,6241 0.50243
Product Management 76 2.00 4.71 3,3816 0.55470
Product /Service Design 76 2.75 5.00 3,8355 0.57381
Quality Information Analysis 76 2.00 5.00 3,7658 0.63531
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
N Minimum Maximum Mean Std.

Deviation
Business Performance 76 2.00 5.00 4.0340 0.60345
Product Quality 76 2.00 5.00 3.7303 0.65290
Operation Performance 76 2.00 5.00 3.5846 0.57673
Organizational Performance 76 2.00 5.00 3.7830 0.54472
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.

Bivariate Correlation Test between constructs
(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
Correlations between constructs
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

D Correlatio 353** 333** 318** 460**

n
Sig .(2- .002 .000 .003 .005 .000
Tailed)
N 76 76 76 76 76 76
OI Pearson . .470** . . . . 1
Correlatio 547** 500** 524** 513** 473*
n *
Sig .(2- .000 .000 .000 .000 .000 .000
Tailed)
N 76 76 76 76 76 76 76
BP Pearson . .263** . . . . . 1
Correlatio 340** 385** 343** 497** 388* 448*
n * *
Sig .(2- .003 .021 .001 .002 .000 .001 .000
Tailed)
76 76 76 76 76 76 76
N
PQ Pearson . .368** . . . . . . 1
Correlation 409** 501** 445** 462** 427* 571* 680*
* * *
Sig .(2- .000 .001 .000 .000 .0000 .000 .000 .000
Tailed)
N 76 76 76 76 76 76 76 76 76
OP Pearson . .307** . . . . . . . 1
Correlation 458** 424** 508** 524** 510* 537* 599* 790*
* * * *
Sig .(2- .000 .007 .000 .000 .000 .000 .000 .000 .000
Tailed)
N 76 76 76 76 76 76 76 76 76 76
Correlation is significant at 0.01 level (2-tailed)
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).

Pearson Correlation Coefficients for the various items are as follows:-
Table 3.6.1
Correlations coefficient for Supplier Relationship Management
SR1 SR2 SR3 SR4 SR5 SR6 SR7

SR1 Pearson Correltion 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)
Table 3.6.2
Correlations for Customer Relationship Management

CR1 CR2 CR3 CR4 CR5 CR6

CR1 Pearson Correltion 1
Sig. (2-tailed)
N 76
CR2 Pearson Correltion . 1
407**
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 the 0.05 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
WM1 WM2 WM3 WM4 WM5 WM6 WM7

WM1 Pearson Correltion 1
Sig. (2-tailed)
N 76
WM2 Pearson Correltion .217 1

N 76 76
WM3 Pearson Correltion .242* . 1
508**
Sig. (2-tailed) .035 .000
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)
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
PM1 PM2 PM3 PM4 PM5 PM6 PM7

PM1 Pearson Correltion 1
Sig. (2-tailed)
N 76
PM2 Pearson Correltion .149 1

N 76 76
PM3 Pearson Correltion .264* .256* 1
Sig. (2-tailed) .021 .025
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)
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
Correlations for Product/Service Design
PSD1 PSD2 PSD3 PSD4
PSD1 Pearson Correltion 1
Sig. (2-tailed)
N 76
PSD2 Pearson Correltion .452** 1
N 76 76
PSD3 Pearson Correltion .555** .550** 1 1
Sig. (2-tailed) .000 .000**
N 76 76 76
PSD4 Pearson Correltion .247 .526 .406 1
Sig. (2-tailed) .031** .000 .000**
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

QI1 QI2 QI3 QI4 QI5
Q11 Pearson Correlation 1
Sig. (2-tailed)
N 76
Q12 Pearson Correlation .592** 1
N 76 76
Q13 Pearson Correlation .576** .662** 1
Sig. (2-tailed) .000 .000
N 76 76 76
Q14 Pearson Correlation .509** .558** .595** 1
Sig. (2-tailed) .000 .000 .000
N 76 76 76 76
Q15 Pearson Correlation .472** .516** .507** 500** 1
Sig. (2-tailed) .000 .000 .000 .000
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

BP1 BP2 BP3 BP4 BP5
BP1 Pearson Correlation 1
Sig. (2-tailed)
N 76
BP2 Pearson Correlation .763** 1
N 76 76
BP3 Pearson Correlation .813 .799** 1
Sig. (2-tailed) .000 .000
N 76 76 76
BP4 Pearson Correlation .654 .810 .715** 1
Sig. (2-tailed) .000 .000 .000
N 76 76 76 76
BP5 Pearson Correlation .543** .518 .619** .620** 1
Sig. (2-tailed) .000 .000 .000 .000
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

PQ1 PQ2 PQ3 PQ4
PQ1 Pearson Correlation 1
Sig. (2-tailed)
N 76
PQ2 Pearson Correlation .685** 1
N 76 76
PQ3 Pearson Correlation .669** .753** 1
Sig. (2-tailed) .000 .000
N 76 76 76
PQ4 Pearson Correlation .638 .701** .720**
Sig. (2-tailed) .000 .000 .000
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

OP1 OP2 OP3 OP4 OP5 OP6 OP7

OP1 Pearson Correltion 1
Sig. (2-tailed)
N 76
OP2 Pearson Correltion . 1
560**
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
OP6 Pearson .451** .271** . . .407**

Correltion 459** 404**
Sig. (2-tailed) .000 .000 .000 .000 .000
N 76 76 76 76 76 76
OP7 Pearson .547** .451** . . .454** . 1

Correltion 538** 489** 549**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 76 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 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
ANOVA for Organizational performance
Model Sum of squares df Mean Square F Sig.
Regression 10,990 7 1570 9.478 .000

1
Residual 11,264 68 .166

Total 22,254 75
a. Dependent Variable: Organizational Performance
b. Predictors: (Constant), QI, SR, PM, PSD, CR, WM
Interpretation:
Regressing organizational performance on the seven predictors results in an R 2 of 0.494,

indicating that approximately 50% of the variance in the organizational performance is
explained by the predictor variables in the linear regression (Table 3.4.1)
Table 3.7.1
Model Summary for Organizational performance

Model R R square Adjusted R square Std. Error of

the Estimation
1 .703 .494 .442 .40700
a. Predictors: (Constant), QI, SR, PM, TM, PSD, CR, WM
b. Dependent Variable: Organizational Performance
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

Model Un-standardized Coefficient Standardized

Coefficient t Sig.
B Std. Error Beta
Constants .536 .481 1.116 .269
TM .023 .140 .020 .162 .872
1 SR -.060 .126 -.052 -.475 .636
CR .213 .129 .190 1654 .103
WM .109 .137 .100 .793 .431
PM .218 .108 .222 2.025 .047
PSD .188 .101 .198 1.864 .067
QI .207 .104 .241 1.982 .052
a. Dependable variable: Organizational Performance
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).
ISO Quality Management Systems Implementation Challenges
Table 3.8
Descriptive Statistics of QMS Implementation Challenges

Implementation Number/ Percentage Mean Std.

1 2 3 4 5
Challenges Deviation
Gaining workforce
commitment to QMS 5/6.6 19/25.0 13/17.1 37/48.7 2/2.6 3.16 1.05
implementation was a
problem
The lack of ISO
9001:2015 QMS
knowledge and 1/1.3 10/13.2 15/19.7 45/59.2 5/6.6 3.57 0.854
experience was a
challenge during the
course of
implementation
There was insufficient
time for QMS 5/6.6 30/39.5 23/30.3 16/21.1 2/2.6 2.74 0.957
implementation in
your organization
There was limited
budget to run the 10/13.2 29/38.2 22/28.9 15/19.70 0/0 2.55 0.958
implementation of the
QMS system
Top management
commitment was low 12/15.8 32/42.1 20/26.3 12/15.8 0/0 2.42 0.942
while implementing
QMS
There was
organizational 9/11.8 21/27.6 25/32.9 19/25 2/2.6 2.79 1.037
structure limitation
during implementing
QMS
1=Strongly Disagree, 2= Disagree, 3=Neutral, 4=Agree, 5=strongly Agree
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.

3.9 Detailed Discussion of the Empirical Results
A total of seven quality management practices and three organizational performance

constructs has been identified and examined for this study whether there is impact on
organizational performance as a result of ISO quality management system implementation. A
questionnaire containing 68 items has been prepared for the organizational performance
dimensions, quality management practices and implementation challenge construct. From 81
distributed questionnaires, 76 questionnaires have been responded which results in 93.83%
response rate. The reliability of the items and the measuring scale has been done by making
use of Cronbach’s α coefficient with all the groups α value of greater than the minimum 0.6.
The aggregate was with α coefficient value of 0.933 which is acceptable to make further
analysis. The descriptive analysis has shown that
 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.
Moreover, the Pearson correlation analysis has shown that,
 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 regression analysis has shown that

 Regressing organizational performance on the seven predictors results in an R2 of 0.494,

which tells that the dependent variable is explained by the predictor variables in the linear
regression.
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:
 Gaining the work force commitment.

 Top management commitment.
 Lack of ISO 9001:2008 QMS knowledge and experience.
 Insufficient time and
 Limited budget.
Interview Question Analysis
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
SUMMARY, CONCLUSION AND RECOMMENDATIONS

4. SUMMARY OF THE STUDYS
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 9001:2015 is an international standard dedicated to Quality Management Systems

(QMS). It outlines a framework for improving quality and a vocabulary of understanding for
any organization looking to provide products and services that consistently meet the
requirements and expectations of customers and other relevant interested parties in the most
efficient manner possible. The QMS is the aggregate of all the processes, resources, assets,
and cultural values that support the goal of customer satisfaction and organizational
efficiency. First published in 1987, the latest iteration (ISO 9001:2015) replaces ISO
9001:2008.
ISO 9001:2015 does not dictate what an organization’s objectives should be or how to
achieve them. In other words, it does not tell anyone how to run their business. It is a flexible
standard that allows each organization to define for itself what its objectives and adherence to
the standard ought to be. ISO 9001:2015 defines the guiding principles that can be used to
create efficiencies by aligning and streamlining processes throughout the organization, in an
effort to bring down costs, create new opportunities, meet regulatory requirements, and help
organizations expand into new markets in which clients demand ISO 9001 certification (the
last of which is increasingly crucial for businesses working in or with the public sector or
serving as suppliers in automotive or private OEM (Original Equipment Manufacturer)
scenarios).
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.
A preliminary step in QMS implementation is to assess the organization’s current reality.

Relevant preconditions have to do with the organization’s history, its current needs,
precipitating events leading to QMS, and the existing employee quality of working life. If the
current reality does not include important preconditions, QMS implementation should be
delayed until the organization is in a state in which QMS is likely to succeed.

4.1 CONCLUSION AND RECOMMENDATION
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.
Literature revealed top management involvement, total employee involvement,

empowerment, deployment of quality policies, education and training, adoption of process
approach, customer orientation, employee job satisfaction, leadership, teamwork, use of
quality tools, change of mind- set of employees, continuous improvement, making

organization learning organization, communication, manager -workers healthy relationship,

elimination of departmental barriers, making continuous improvement as a way of life,
elimination of dominating bossy attitude, involvement of suggestion system, positive role of
HR personnel's are important facilitating factors for the successful implementation of QMS.
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.
Research suggests following points to be followed by the organizations who want to

implement QMS and gain all round performance excellence are as follows:
 Focus on big 'Q'
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'.

 Adopt PDCA Cycle
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.
 Absorb Quality Management System
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.
 Top management commitment
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.

 Employee Welfare and Quality of Work life
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.
 Reward and Recognition
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
Empowerment of employees is one the latest management techniques deployed to result in

continuous improvement in the organization. Employees should be empowered to work
according to their ideas regarding the jobs and tasks assigned to them. They have to carry out
the strategic goals in daily business affairs and know the exact demands of their job so they

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 Performance Appraisal
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:
1. Be Progressive by regularly asking your employees for suggestions
2. Remove fear by focusing on the process and not on the person.
3. Simplify the process so it is easy to participate.
4. Respond quickly to suggestions and within specified period of time.
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.
Provide Total Quality Culture involved with:
1. Two way communications between top – down and bottom top.
2. The principal focus on customer and customer satisfaction.
3. Continuous improvement through Training & Education.
4. Decentralizing of decision making responsibilities by assuring everyone’s participation.
5. Flexible & innovative work environment that recognizes the value of the Human
Resources.
 Team work management system.
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
Aggelogiannopoulos, D., Drosinos, E. & Athanasopoulos, P., 2007, Implementation of a

quality management system (QMS) according to the ISO 9000 family in a Greek small-sized
winery: A case study. Food Control, 18(9), pp. 1077-1085.
Al‐ Rawahi, A. M. & Bashir, H. A., 2011, on the implementation of ISO 9001:2000: a
comparative investigation. The TQM Journal, 23(6), pp. 673-687.
Awoku, R. Y.-A., 2012. An Empirical Study on Quality Management Practices, Organization

Performance and Suppliers' Selection in Southern Minnesota Manufacturing Firms Theses,
Dissertations, and Other Capstone Projects.., Mankato: Minnesota State
Anh, (2006) Customer oriented, Supplier relationship, Process control, Product design
process, Cleanliness and organization, Perceived quality market outcome, Competitive
Performance, Top management support quality University.
Bell, M. & Omachonu, V., 2011, Quality system implementation process for business
success. International Journal of Quality & Reliability Management, 28(7), pp. 723-734.
BSI, 2017, bsigroup, [Online] Available at:

https://www.bsigroup.com/Documents/iso9001/resources/BSI-ISO-9001-Management-
system-White-paper-UK-EN.pdf[Accessed 14 August 2017].
Cambridge University, 2017, [Retrieved from

http://assets.cambridge.org/97805215/15221/excerpt/9780521515221_excerpt.pdf on 7
October 2017].
Carlsson, M. & Carlsson, D, 1996, experiences of implementing ISO 9000 in Swedish

industry, International Journal of Quality & Reliability Management, 13(7), pp. 36-47.
Dale. B. G. (2003), Managing Quality. U.K: Blackwell Publishing Ltd
Danish, R. Q., & Usman, A. (2010), Impact of Reward and Recognition on Job Satisfaction
and Motivation: An Empirical Study from Pakistan. International Journal of Business and
Management, 5 (2), 159-167.

Das, R. (1974), Impact of School Conditions on Primary Education. Assam: State Institute of
Education.
Demings Electronic Network, Retrieved from Deming RelatedInformation:
http://deming.eng.clemson.edu/pub/den/deming _philosophy.htm Deming, W. E. (1982), Out
of the Crisis. Massachusetts: Massachusetts Institute of Technology.
Desrochers, J. (1987), Education for Social Change. Bangalore: Centre for Social Action.
Dorai swamy, P. K. (2005), Total Quality Management and Education, The Hindu, Drucker,
P. F. (1993), the five most important questions you will ask about your nonprofit
organization. California: Jossey-Bass Inc, Publications.
Eapen, K. V. (1986), a Study of Kerala History. Kottayam: Kollett Publications.
Edwards, D, (1991, December), Total Quality Management in Education, Management

Services, 16-19.
Feigenbaum, A. V. (1983). Total Quality Control. New York: McGraw Hill.
Fitzgerald, R. (2004), Total Quality Management in Education, Minute man Career and
Technical high school, retrieved from http://www,Minuteman. Org/topics/tqm, Garvin, D, A,
(1988)
Field, A. (2005), Discovering Statistics Using SPSS New Delhi, SAGE Publication.
Foley, K. J. & Hermel, P. (2008), the Theories and Practices of Organization Excellence:
New Perspectives. Australia: Sai Global Limited.
Feng, M., Terziovski, M. & Samson, Ds, 2008, (2008), “Relationship of ISO 9000:2000
quality system certification with operational and business performance, Journal of
Manufacturing Technology Management, 19(1), pp. 22-37
Ferguson, W., 1996 Impact of the ISO 9000 series standards on industrial marketing
Industrial Marketing Magazine, Volume 25, p. 305–310

Franceschini, F., Galetto, M. & Maisano, D., 2007 Management by Measurement Designing
Key Indicators and Performance Measurement Systems 1st ed. Heidelberg: Springer-Verlag
Berlin.
Goeff, T., 2001, Six Sigma: SPC and TQM in manufacturing and services, Hampshire:
Gower Publishing Limited, Goetsch, D. & Davis, S., 2005, (Understanding and Implementing
ISO 9000:2000), Prentice. Hauser, J. & Katz, G., 1998, Metrics: you are what you measure!
European Management Journal, 16(5), pp. 517-528.
INTRA.ITILTD-India 2017, intra.itiltd-india.com [Online] available at:

http://intra.itiltdindia.com/quality/ISOStandards/ISO9001-2008-STD,pdf[Accessed 14
August 2017] ISO, 2017 International Organization for Standardization [Online] Available
at: https://www.iso.org/iso-9001-quality-management.html[Accessed 25 April 2017]
ISO, 2017 International Organization for Standardization. [Online]Available at:

https://www.iso.org [Accessed 12 August 2017].
Kafetzopoulos, D. P., Psomas, E. L. & Gotzamani, K. D., 2014. The impact of quality
management systems on the performance of manufacturing firms International Journal of
Quality & Reliability Management, 32(4), pp. 381-399.
Karipidis, P., Athanassiadis, K., Aggelopoulos, S. & Giompliakis, E., 2009 Factors affecting
the adoption of quality assurance systems in small food enterprises Food Control, 20(2), pp.
93-98.
Kachign (1991) Multivariate Statistical Analysis, Routledge, London.
Knowles, G. (2012), Managing Quality in the 21st Century: Principles and Practice.
Bookboon.com
Knowles, G. (2012), Six Sigma Bookboon.com
Lakhal, L., Pasin, F. & Limam, M., 2006, Quality management practices and their impact on
performance International Journal of Quality & Reliability Management, 23(6), pp. 625-646
Lee, K. & Palmer, E., 1999, an empirical examination of ISO 9000 registered companies in
New Zealand. Total Quality Management, 10(6), pp. 887-899.

Leonardo, A. S. F., 2011, measuring economic effects of quality management systems Vol.
23 No. 4, The TQM Journal, 23(4), pp. 458-474.
Lin, C. & Jang, W., 200, Successful ISO 9000 implementation in Taiwan: how can we
achieve it, and what does it mean? International Journal of Productivity and Performance
Management, 57(8), pp. 600-622.
Marın, L. & Ruiz-Olalla, M., 2011, ISO 9000:2000 certification and business results,
International Journal of Quality & Reliability Management, 28(6), pp. 649-661
Neely, a, 2007, Business Performance Measurement: Theory and Practice. 2nd ed.
Cambridge: Cambridge University Press.
Ngambi, M. T. & Nkemkiafu, A. G., 2015 The Impact of Total Quality Management on
Firm’s Organizational Performance Vol. 15(4) 2015 American Journal of Management, 15(4)
Patyal, V. & Koilakuntla, M., 2015b Interrelationship between total quality management and
Six Sigma: a review. Global Business Review, 16(6), pp. 1025-1060.
Patyal, V. S. & Koilakuntla, M., 2017 the impact of quality management practices on
performance: an empirical study. Benchmarking: An International Journal, 24(2), pp. 511-
535
Powell, T., 1995 Total quality management as competitive advantage: a review and empirical
study. Strategic Management Journal, 16(1), pp. 15-37.
Skinner, W., 1969 Manufacturing: missing link in corporate strategy. , 47(3), 136–45... s.l.:
Harvard Business Review.
Su, Q. et al., 2008. The impacts of quality management practice on business performance an
empirical investigation from China. International Journal of Quality & Reliability
Management, 25(8), pp. 809-823.
Tsiotras, G. & Gotzamani, K., 1996 ISO 9000 as an entry key to TQM: the case of Greek
industry. International Journal of Quality & Reliability Management, 13(4), pp. 64-76.
Tulu, D., 2011. Impact of ISO 9001 Certification on Companies’ Performance- The Case of
Ethiopian Brewery Companies. [Online]

Available at: http://etd.aau.edu.et/simple-search?query=ISO++QMS+implement [Accessed

23 October 2017].
UNIDO, 2016 Good Practices: Experience in the Market Surveillance of ISO 9001 Quality
Management Systems, Vienna, Austria: UNIDO.
UNIDO, 2016 ISO 9001 Relevance and Impact in Brazil, United Nations Industrial
Development 42 Organization
Yahya, S. & Goh, W., 2001 the implementation of an ISO 9000 quality system International
Journal of Quality & Reliability Management, 18(9), pp. 941-966
Journals
Abas, Z., & Yaacob, Z (2006) exploring the Relationship between Total Quality
Management (TQM), Strategic Control system (SCS) and Organizational Performance 166
(OP) uses a SEM framework. Cambridge: Journal of American Academy Business (Vol. 9,
No. 2, pp. 161-166).
Abdullah, M. M. B. & Uli, J. (2008), the influence of soft factors on quality improvement
and performance: perceptions from managers. The TQM Magazine (Vol. 20, No. 5, pp. 436-
452)
Abohimed, B. (May 2001). Identifying Some Management Approaches to Total Quality

Management within Industrial Organizations
Alwan, B. M. (March 2012).Effectiveness of TQM and its impact on production costs to

make a profit in industrial companies. Interdisciplinary Journal of Contemporary Research in
Business (Vol. 3, No. 11)
Anh, P. C. & Matsui, Y. (2006) an empirical analysis of quality management practices in

Japanese manufacturing companies. Hong Kong: Annual Conference of Asia Pacific
Decision Sciences Institute (pp. 126-137).
Antony, J., Leung, K. & Knowles, G. (2002), Critical success factors of TQM
implementation in Hong Kong industries International Journal of Quality & Reliability
Management (Vol. 19, No. 5, pp. 551-566)

Arshida, M. M. & Agil, S. O. (2013), Critical Success Factors for Total Quality Management
Implementation within the Libyan Iron and Steel Company, ISS & MLB (September 24-26).
Arumugam, V. C. & Mojtahedzadeh, R. (2011) Critical Success Factors of Total Quality

Management and their Impact on Performance of Iranian Automotive Industry: A Theoretical
Approach. European Journal of Economics, Finance and Administrative Sciences (ISSN:
1450-2275, Issue 33).
Bartley, B. & Gomibuchi, S. (2007). Best practices in achieving a customer-focused culture.

Benchmarking: An International Journal (Vol. 14, No. 4, pp. 482-496)
Bayazit, O. (2003). Total quality management (TQM) practices in Turkish manufacturing

organizations. The TQM Magazine (Vol. 15, No. 5, pp. 345-350)
Bikshapathi, V. (December 2011). Impact of ISO Certification on TQM Practices in Small

and Medium Enterprises International Journal of Multidisciplinary Research (ISSN:
22315780, Vol. 1, Issue. 8).
Chowdhury, M. & Paul, H. (2007) The Impact of Top Management Commitment on Total
Quality Management Practices: An Exploratory study in the Thai Garment Industry. Global
Journal of Flexible System Management (Vol. 8, pp. 17-29)
Claver, E. & Tari, J. J. (2008) the Individual Effects of Total Quality Management on
Customers, People and Society Results and Quality Performance in SMEs”, Quality and
Reliability Engineering International (Vol. 24, pp. 199-211)
Demirbag, M. & Koh, S. C. L. (2006), TQM and market orientation’s impact on SMEs’
performance. Industrial Management & Data Systems (Vol. 106, No. 8, pp. 1206-1228)
Di, Tesi Di L. Casas, A. M. (2010-11). Total Quality Management: quality, culture,

leadership and motivation.
Eshun, S. (September 2012). Assessing the Impact of Quality Management on Staff

Performance at Ghana Senior High School
Feng, J., Prajogo, D. I., & Sohal, A. S. (2006, the Impact of TQM Practices on Performance:
A Comparative Study between Australian and Singaporean Organizations. European Journal
of Innovation Management (Vol. 9, No.3, pp. 269-278)

Flynn, B. B. & Schoeder, R. G. (1994) A framework for quality management research and an
associated measurement instrument Journal of Operations Management (Vol. 11, No. 4, pp.
339-366)
Fening, F. A., Amaria, P. & Frempong, E. O. (August 2013), Linkages between Total Quality
Management and Organizational Survival in Manufacturing Companies in Ghana
International Journal of Business and Social Science (Vol. 4, No. 10)
Fukui, R. & Honda, Y. (October, 2003).Handbook for TQM and QCC-How to Start QCC (A
Guide for Facilitators and Circle Leaders) (Vol. 2, pp. 9-11)
Garvin, D. A. (1984) Quality On-line Harvard Business Review (Vol. 61, No. 5, pp. 65- 75)
Gloria, M. T. V. (2005) TQM adoption and firm performance in the Philippines Philippine
Management Review (Vol. 12, pp. 23-44)
Gul, A., Jafery, S. A. S., Rafiq, J. & Naeem, H. (2012) Improving Employees Performance
through Total Quality Management International Journal of Economics and Management
Sciences (Vol. 1, No. 8, pp. 19-24)
Hassan, M., Mukhtear, A. Q. Saif Ullah, S. S. (October 2012). Impact of TQM Practices on
Firm’s Performance of Pakistan’s Manufacturing Organizations International Journal of
Academic Research in Business and Social Sciences (ISSN: 2222-6990, Vol. 2, No. 10).
Hayat, M. A., Bhatti, M. I. & Bukhari, K. S. (2010) Globalization and firm’s quality
orientation: a review of total quality management practices in manufacturing sector. Croatia:
SCIYO publisher (ISBN: 9789533071923, pp. 91-112).
Huarng, F., Chen, Y. (2002), Relationships of TQM philosophy, methods and performance: a
survey in Taiwan, Industrial Management & Data Analysis (ISSN: 0263-5577, Vol.102, No.
4, pp. 226-234)
Irani, Z., Beskese, A. & Love, P.E.D. (2004) Total quality management and corporate
culture: constructs of organizational excellence, Technovation (Vol. 24, 643-650).
Issac, G., Rajendran, C. & Anantharaman, R. N. (2004), a conceptual framework for total
quality management in software organization Total Quality Management (Vol. 15(3), pp.
307-344)

Jaafreh, A., Bakhit, A. & Abedalfattah, Z. (2013) The Effect of Quality Management
Practices on Organizational Performance in Jordan: An Empirical Study. International
Journal of Financial Research (Vol. 4, No. 1)
Joiner, T. A. (2007) Total quality management and performance: the role of organization
support and co-worker support. International Journal of Quality & Reliability Management
(Vol. 24, No. 6, pp. 617-627)
JU, T. L. & Binshan, L. (2006) TQM critical factors and KM value chain activities. Total
Quality Management & business Excellence (Vol. 17, No. 3, pp. 373-393)
Karuppusami, G. & Gandhinathan, R. (2006) Pareto analysis of critical success factors of

total quality management: A literature review and analysis The TQM Magazine (Vol. 18, No.
4, pp. 372-385)
Karla, N. & Pant, A. (2013) Critical Success Factors of Total Quality Management in the
Indian Automotive Industry International Journal of Economy, Management and Social
Science (Vol. 2, No. 8, pp. 620-625)
Khanna, H. (2010). Quality Management in Indian Manufacturing Organizations: Some

Observations and Results from a Pilot Survey. Brazilian Journal of Operations and
Production Management (Vol. 7, No. 1, pp 141-162)
Kumar, v., Choisene, F., Grosbois, D. D. & Kumar, U. (2009). Impact of TQM on
Company’s Performance”, International Journal of Quality & Reliability Management (Vol.
26, No. 1, pp. 23-37)
Malik, M. N., & Khan, H. H. (2011) Total Quality Management in Manufacturing Industry of
Pakistan: A Case of Cement Industry. ICTMIE
Malik, S. A., Iqbal, M. Z., Shaukal, R. & Yong, J. (August 2010).TQM Practices &
Organizational Performance: Evidence from Pakistani SMEs. International Journal of
Engineering & Technology (Vol. 10, No. 4, pp. 26-31)
Mohammed, A. H. (2008). Quality Management System in Malaysian Construction Industry
Munizu, M. (August 2011).Critical Total Quality Management in Manufacturing Companies:

A Case Study in Makassar. Journal of Economics, Business and Accountancy Ventura (Vol.
14, No. 2, pp. 175-184)

Nofal, A. A., Omaim, N. A., & Zairi, P. M. (July 2005). TQM: Theoretical Insights Part-1.
(Working paper no 05/26)
Noronha, C. (2002). The Theory of Culture-Specific Total Quality Management in Chinese

regions. Palgrave Macmillan publishers Ltd
Ou, C. S., Liu, F. C., & Yen, D. C. (2006) the Effect of Total Quality Management on
Business Performance: Evidence from Taiwan Information- Related Industries. Hong Kong:
11th Annual Conference of Asia Pacific Decision Science Institute (pp. 214-217).
Powell, T. C. (1995). Total quality management as competitive advantage: a review and

empirical study. Strategic Management Journal (Vol. 16, pp. 15-37)
Prajogo, D. L. & Sohal, A. S. (2006). The relationship between organization strategy, total
quality management and organization performance-the mediating role of TQM European
Journal of Operational Research (Vol. 168, pp. 35-50)
R. G., Jhon, S. F. & Balasaraswathi, K. (November, 2013). A Study On Motivational Factor

For Sustaining Quality Control Circles- An Empirical Study Conducted In Bangalore, India.
International Journal of Business and Management (ISSN- 2321-8916, Vol. 1, No. 5)
Reed, R., Lemark, D. J. & Mero, N. P. (February 2000) Total Quality Management and
Sustainable Competitive advantage Journal of Quality Management (Vol. 5, pp. 5-26)
Reeves, C. A., & Bednar, D. A. (1994) Defining quality: Alternatives and implications
Academy of Management Review (Vol. 19, No. 3).
Reid, R. D., Sanders, N. R. (October 23 2012). Operations Management: An Integrated

Approach. John Willy & Sons Publisher (ISBN: 978-1-118-12267-9, pp. 136-170)
Rodchua, S. (2006) Factors, Measures and Problems of Quality Costs Program

Implementation in the Manufacturing Environment Journal of Industrial Technology (Vol.
22, No. 4)
Salaheldin, S. I. (2009). The implementation of TQM strategy in Egypt: a field-force

analysis. The TQM Magazine (Vol. 15, No. 4, pp. 266-274)
Saraph, J.V. & Benson, P.G. (1989) an Instrument for Measuring the Critical Factors of
Quality Management Decision Science (Vol. 20, No. 4, pp. 266-274)

Shaikh, M. J. (2012). TQM and Business Performance: An Investigation into FMCG

Companies in Pakistan. International Journal of Scientific & technology Research (ISSN:
2277-8616, Vol. 1, Issue. 10).
Singla, N., Khanduja, D., & Singh, T. P. (2011) TQM for manufacturing excellence: Factors
critical to success International Journal of Applied Engineering Research, (ISSN: 0976- 4259,
Vol. 2, No. 1).
Sun, H. (2000) a comparison of quality management practices in Shanghai and Norwegian

manufacturing companies. International Journal of Quality & Reliability Management (Vol.
17, No. 6, pp. 636-60)
Talib, F., Rahman, Z. & Qureshi, M. N. (2011) Analysis of Total Quality Management
Practices in Manufacturing and Service Sectors. International Conference on Interdisciplinary
Research and Development
Watson, J. (2003) the Impact of TQM Adoption on SME Financial Performance 16th Annual
Conference of Small Enterprise Association of Australia and New Zealand
Witjaksono, A. D (June 30- July 1, 2012) the Difference of TQM Practice and Organization
Performance between TQM Firms and Non TQM Firms ICMESS’201
Yusof, S. M. (2003). Total quality management advancement and critical success factors for
implementation in manufacturing small and medium sized enterprise (SMEs). Final Report
for RMC: Short term research grants (VOT. 71663)
Zhang, Z. (February 2001). Implementation of Total Quality Management: An Empirical

study of Chinese Manufacturing Firms (ISBN: 90-72591-87-9).
Thesis
Abusa, F. (2011) TQM Implementation and its Impact on Organizational Performance in

Developing Countries: A case study on Libya University of Wollongong Thesis (pp. 11-16)
Bell, M. A. (2011). Determinants of Success in ISO 9000 Implementation University of

Miami: Ph.D. Thesis.
Brun, A. (2010-11) Total Quality Management- Quality Culture, Leadership and Motivation
Politecnico di Milano uni PhD Thesis (pp. 52-53)

Butler, J. M. J. (January 2009). Implementation of Quality Management in the Public Sector

versus the Private Sector: a cultural analysis
Clement, K., & Michael, M. (2010) Factors that lead to a Successful TQM implementation: a
case study on the Zambian Tourism Industry
Eriksson, H. (2002) Benefits from TQM for Organizational Performance. Lulea University of
Technology
Gabriel, O. O. (2010). Total Quality Management in Nigerian S.M.E. companies: A case

study of Rolling Technologies Communication Limited.
Hansson, J. (2003) Total Quality Management- Aspects of Implementation and Performance

(Investigations with a focus on small organization) Lulea University of Technology
Irianto, D. (2005) Quality Management Implementation: A multiple case study in Indonesian

manufacturing firms. University of Twente, The Netherlands
Isaksoon, R. (2004). Total Quality Management for Sustainable Development- Focus on

Processes Lulea University of Technology
Khan, N. (1999) the Impact of Total Quality Management on a Competitive Business

Position University of Engineering and Technology, Lahore, Pakistan
Khan, A. R. & Zhang, L. (November 2008). Applying Six Sigma in Software Companies for
Process Improvement
Khatavakar, W. N. (2007). A study of quality improvements and related cost reduction

programmes adopted by selected private sector industrial units in Pune region. Indian
Institute of Cost and Management Studies & Research
Kumar, M. R. (2005). Total quality management as the basis for organizational

transformation of Indian Railways: a study in action research. Southern Cross University
Ngole, N. B. & Munir, H. (May 2008). Total Quality Management as a Competitive

Advantage Halmstad Uni: Master Dissertation in Marketing.
Nosakhare, J. O. (2000). Organizational Approach to Total Quality Management in Nigeria

St. Clements University

Sowdamini, T. (2013) Six Sigma Practices: A study of LG Polymers, Vishakhapatnam
Rillo, C. A. F. (2010-11). Why do companies choose to be ISO 9000 certified and what is the
relationship between certification and innovation? An empirical analysis for Luxembourg
Universita’ Degli Studi Di Trieste
Wahid, R. A. (2010). Beyond Certification: The maintenance of ISO 9000 in Malaysian

service organizations. The University of Waikato
Annual Reports and Others
Chandra, P. (2009). Competitiveness of Indian Manufacturing: Findings of the Third National

Manufacturing Survey. National Manufacturing Competitiveness Council: Government of
India.
Department of Economic and Policy Research, Reserve Bank of India, Mumbai (2010)
Productivity, Efficiency and Competitiveness of the Indian Manufacturing Sector: Study
No37.
Engineering and Auto Industries: Sector Profile (2011). 5th Global Summit: The Global
Business Hub. Industrial Extension Bureau
Federation of Automobiles Dealers Association (2007) an article: India as a Global Base for
Automotive Manufacturing and Services - International Challenge.
Gujarat Industrial Policy: Catalyzing Robust, Sustainable & Inclusive Growth (2009).
Government of Gujarat
India as a Global Base for Automotive Manufacturing and Services- International Challenge
(2007) KPMG Survey: Federation of Automobile Dealers Associations.
Measures for Ensuring Sustained: Growth of the Indian Manufacturing Sector (2008). Report
of the Prime Minister’s Group: National Manufacturing Competitiveness Council,
Government of India.
Methodology for measuring the logistics cost for major manufacturing exports and assessing
its impact on their competitiveness (2011). Final Report: Federation of Indian Chambers of
Commerce and industry.

The National Strategy for Manufacturing (2006) National Manufacturing Competitiveness

Council, Government of India: New Delhi.
National Manufacturing Competitiveness Council, Government of India (2005). Indian

Manufacturing Industries: Technology Status and Prospect.
Working and Administration of the Companies Act, 1956 (2009-2010). 54th Annual Report:
Ministry of the corporate affairs government of India, New Delhi.


ANNEXURE

QUESTIONNAIRE
A. Demographic Characteristics
Current position: Manager Service Head Division Head
Section Head Expert
Highest Qualification: Diploma BA/BSC Master & above
Work experience: 2-8 9-15 16-25
26-40
Sex: Male Female
B. Management and Employees Opinion Measurement
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
I Top Management Commitment
TM 1 The top management of your organization

(i.e. top executives and major department
heads) assumes responsibility for quality
performance
TM 2 The top management of your organization
provides personal leadership for quality
products and quality improvement
TM 3 Your organization’s top management is
evaluated for quality performance
TM 4 In your organization, major department

heads participate in the quality improvement
process
TM 5 In your organization, “Quality issues” are
reviewed in top management meetings
TM 6 In your organization, top management views
quality performance as a major objective
TM 7 In your organization, strategic decisions are
affected by top management
TM 8 In your organization, quality policy is
developed by top management
TM 9 In your organization information processing
is efficient & effective
TM 10 Employees obtain timely, reliable, consistent
& necessary data & information as they need
to do their job
II Supplier Relationship Management

SR 1 Your organization believes in long-term

relationships with suppliers and takes effort
for the same
SR 2 Your organization trusts on a small number
of high-quality suppliers
SR 3 Your organization allows supplier’s active
participation in product design/redesign
process
SR 4 Your organization evaluates suppliers based
on parameters related to quality, delivery
and price
SR 5 Your organization has a systematic supplier
rating system
SR 6 Your organization provides technical
assistance to suppliers
SR 7 Your organization is working with suppliers

to ensure that expectations met
III Customer Relationship Management
CR 1 Your organization believes in maintaining

consistent contact with customers
CR 2 Your customers provide feedback on quality
and delivery performance
CR 3 Your organization measures customer
satisfaction of external customer
CR 4 Customer requirements are used as the basis
for quality in your organization
CR 5 Your employees are aware about your
customers
CR 6 Your customers visit your plant
IV Work Force Management
WM 1 Your organization form teams to solve

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
PM 1 Processes in your organization are designed

to minimize the chances of errors
PM 2 Your organization meets daily production
schedule
PM 3 In your organization, production is stopped
immediately for quality problems
PM 4 Your organization conducts preventive

equipment maintenance
PM 5 Your organization provides clear process
instructions
PM 6 In your organization, shop floors are well
organized and clean
PM 7 Your organization has adopted statistical
process control
VI Product/Service Design
PSD 1 Your organization reviews new

product/service designs in detail before the

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
VII Quality Information And Analysis
QI 1 Your organization manages useful data

pertaining to quality (such as error rates,
defect rates, scrap, defects, cost of quality,
etc.)
QI 2 In your organization, data are accessible to
managers, supervisors, and engineers
QI 3 Your organization manages data timely
QI 4 Your organization use data for managing
quality
QI 5 Your organization use data for evaluating
supervisory as well as managerial
performance
VIII Business Performance
BP 1 Your company operating income improved

after implementation of ISO 9001:2015
BP 2 Your company Market share increased after
implementation of ISO 9001:2015
BP 3 Sales of the company product improved after
the implementation of ISO 9001:2015
BP 4 The implementation of ISO 9001:2015
Increased Profits of the company
BP 5 After the implementation of ISO 9001:2015
the manufacturing unit cost has been reduced

IX Product Quality
PQ 1 After the implementation of ISO 9001:2015

the reliability of the product increased
PQ 2 The implementation of ISO 9001:2015 QMS
improved the consistency/durability of the
product
PQ 3 The implementation of ISO 9001:2015 QMS
improved the perceived quality of the
product
PQ 4 The company’s rate of product defect
reduced and there was increased
conformance to specifications after
implementation of ISO 9001:2015 QMS
X Operational Performance
OP 1 There was labor productivity improvement

observed after the implementation of ISO
9001:2008 QMS in the company.
OP 2 There was input material utilization rate
improvement observed after the
implementation of ISO 9001:2008 QMS in
the company.
OP 3 The production process was capable of
producing variety of products after
establishments
OP 4 Cycle time (from receipt of raw materials to
shipment of finished products) has decreased
in your organization over the past three years
OP 5 The implementation of QMS increased
Company’s ability to have access to new
domestic and foreign markets
OP 6 There was machine efficiency improvement
observed after the implementation of ISO
QMS in the company
OP 7 Process variability in your organization has

decreased after implementation of ISO

QMS.
XI Implementation challenges
IC 1 Gaining workforce commitment to QMS

implementation was a problem
IC 2 The lack of ISO 9001:2008 QMS knowledge
and experience was a challenge during the
course of implementation
IC 3 There was insufficient time for QMS

implementation in your organization
IC 4 There was limited budget to run the

implementation of the QMS system
IC 5 Top management commitment was low

while implementing QMS

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?
3. How long you take to implement the QMS in Your Company?
4. Could you please explain to me the Mandatory procedures required by ISO 9001:2015?
5. What are the main benefits of implementing ISO 9001:2015 QMS?
6. How do you implement the eight principles of quality management systems?
7. What steps have you taken to implement quality management systems in your
organization?
8. Do you have Quality Manual? And if so what items it contains?
9. How do you conduct the required gap analysis of 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?

























FP Last Sem

Uploaded by

Copyright:

Available Formats

FP Last Sem

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

FP Last Sem

Uploaded by

Copyright:

Available Formats

A STUDY ON THE QUALITY MANAGEMENT SYSTEM ON ORGANIZATIONAL PERFORMANCE: A CASE OF STEEL

INDUSTRIES KERALA LIMITED

CHAVARA, MSNIMT Page1

1. INTRODUCTION TO THE STUDY

It is an opportunity for the students to build a solid understanding of the fundamentals of

Integrated theoretical knowledge in the industry

Analyze complex/technical projects or problems

Communicate effectively on complex/ technical activities

CHAVARA, MSNIMT Page2

QUALITY MANAGEMENT SYSTEM

Quality Management System is a collection of business processes focused on consistently

CHAVARA, MSNIMT Page3

According to the International Organization for Standardization (ISO), quality management

CHAVARA, MSNIMT Page4

CHAVARA, MSNIMT Page5

ISO 9001:2015 is based on the plan-do-check-act-methodology and provides a process-

 Requirements for a QMS, including documented information, planning, and determining

QUALITY MANAGEMENT SYSTEM ISO 9001: 2015

CHAVARA, MSNIMT Page6

Implementing a quality management system affects every aspects of an organization’s

Implementation of best practices and process improvement

CHAVARA, MSNIMT Page7

Increased financial performance

Investment in Quality Management System is rewarded by improved financial performance.

Increase in market share

Improvement in internal communication

CHAVARA, MSNIMT Page8

Risk Based Thinking

CHAVARA, MSNIMT Page9

1.1 BACKGROUND OF THE PROBLEM

CHAVARA, MSNIMT Page10

The practices of QMS are expected to bring improvement in Business Performance by

THE PURPOSE OF THE PROJECT WAS TO STUDY THE QUALITY MANAGEMENT

CHAVARA, MSNIMT Page11

1.2 INTRODUCTION TO THE COMPANY

1.2.1 INDUSTRY PROFILE

National steel policy

CHAVARA, MSNIMT Page12

 Steel companies are plagued with huge debts.

CHAVARA, MSNIMT Page13

Indian Steel Industries Production

CHAVARA, MSNIMT Page14

Indian Steel Industry : Production (in Million Tonnes )

Category 2015-16 2016-17 2017-18 2018-19 2019-20

Pig Iron 10.24 10.34 5.73 6.41 5.51

Sponge Iron 22.43 28.76 30.51 34.71 37.14

Total Finished 106.60 120.14 126.85 101.29 102.06

CHAVARA, MSNIMT Page15

Steel industry was de-licensed and de-controlled in 1991 &1992 respectively.

Opportunities for growth of Iron and Steel in Private Sector

The New Industrial Policy Regime

The Growth Profile

CHAVARA, MSNIMT Page16

CHAVARA, MSNIMT Page17

Import of Steel in India

Indian industry : Import of Total Finished Steel (in million tonnes)

Category 2015-16 2016-17 2017-18 2018-19 2019-20

Quality 11.71 7.23 7.48 7.83 6.77