A Project Report on A STUDY ON IMPACT OF ISO PROCEDURES ON QUALITY CONTROL AT SIS

“A STUDY ON IMPACT OF ISO PROCEDURES ON QUALITY CONTROL AT SIS”

INDEX

SL.NO CONTENTS PAGE NO

1. EXECUTIVE SUMMARY 1-2

2. STATEMENT OF PROBLEM 3

3. SCOPE & OBJECTIVE 4

4. INDUSTRY PROFILE 5-6

5. COMPANY PROFILE 7-13

6. PROFILE OF DEPARTMENT 14-30

7. RESEARCH METHDOLOGY 31-33

8. ABOUT ISO 34-37

9. IMPACT OF ISO AT SIS 38-47

10. FISHBONE TECHNIQUE 48-54

11. CALCULATIONS&ANALYSIS 55-59

12 FINDINGS&LIMITATIONS 60-62

13. CONCLUSION 63

14. BIBILOGRAPHY & ANNEXURE. 64-65

Babasabpatilfreepptmba.com Page 1


CHAPTER –I

EXECUTIVE SUMMARY

BELGAUM CITY IS WELL KNOWN FOR THE FOUNDRY INDUSTRIES, WHERE

HUGE RESOURCES ARE AVAILABLE IN PLENTY PERTAINING TO IT .SHANTI

IRON AND STEEL is Known for the excellence of its quality castings manufacturing

company. SIS got its ISO certification in the year 2001. I have undertaken a project

entitled “IMPACT OF ISO PROCEDURES ON QUALITY CONTROL” at SIS.

An In-depth study was made to understand the nature of the organization as a

whole and exposed to get the practical knowledge. The main objective of the study is to

know the effective implementation of ISO 9001:2000 procedures and how it has helped to

improvise the quality as well as reduced the rejection rate.

Methodology of the study:

1. Determined the statement of the problem

2. Objectives of the study:

TO STUDY THE REASONS WHY SIS OPTED FOR ISO.

TO STUDY HOW ISO CAN HELP TO IMPROVEVISE THE

QUALITY.

TO ANALYSE THE REASONS FOR REJECTIONS IN PRE-ISO

PERIOD.

TO STUDY HOW ISO IMPLEMENTATION HAS HELPED TO

REDUCE REJECTIONS AND IMPROVE QUALITY CONTROL AT

SIS.

Research Design used in this study is explorative in Nature to collect the information .

Tools used for Data collection is

a) Primary source: Interaction with Accounts manager at SIS



b) Secondary source : Company Brochure, Through Internet, Magazines and

Guidelines provided to company by ISO -true copy.



Through “FISH BONE Technique” the reasons for rejections analyzed.

Some of the important findings are :

Reduction in expenses by 19% .

Effective ISO 9001:2000 guide lines helped in reducing the rejection of

materials .

Quality control ensures the improvising the quality & accuracy in production.

It was an opportunity to learn the practical aspects of industries. I choose this

topic concerned to company requirement.



CHAPTER –II

1. IDENTIFICATION OF PROBLEM2. OBJECTIVES OF THE STUDY 3. SCOPE OF THE STUDY

STATEMENT OF THE PROBLEM

The management world has seen many new ideas, concepts, through innovation etc.,

which have emerged almost each day with the object of achieving result for the

organizations. One such concepts in TQM, which is almost done by, or other way using

different techniques, is QUALITY CONTROL, which was lead to many questions such

as what kind of METHODS ADOPTED IN IMPROVING THE QUALITY, It is

desirable to use different technique in REDUCING THE REJECTIONS, The study is



being undertaken to know the relative importance and effectiveness of an ISO

PROCEDURES ON QUALITY CONTROL AT SHANTI IRON AND STEELS -

UDYAMBAG , BELGAUM .

The topic of the research report is “ A STUDY ON IMPACT OF ISO

PROCEDURES ON QUALITY CONTROL”.

Scope and objectives of the study

SCOPE OF STUDY:-

This Project Report highlights the importance of ISO certification and its Guidelines as

well as its impact on quality control, the procedures involved in production method , I,e-

pre & post implementation of ISO 9001:2000 certification.



The organization is engaged in manufacturing the raw castings and machine castings

products like – oil sump, gear casing, side valves ….etc agricultural and a engineering

equipments.

Objectives of the study:


TO STUDY HOW ISO CAN HELP TO IMPROVEVISE THE

QUALITY.

TO ANALYSE THE REASONS FOR REJECTIONS IN PRE-ISO

PERIOD.

TO STUDY HOW ISO IMPLEMENTATION HAS HELPED TO

REDUCE REJECTIONS AND IMPROVE QUALITY CONTROL AT

SIS.



CHAPTER –III

INTRODUCTION

TO

ORGANIZATION

INDUSTRY PROFILE

Gem of our State

Belgaum District, the second largest in terms of geographical area is growing to become

as a vibrant economy. Its strategical location, connectivity, salubrious climate, huge

natural resources, vast pool of human talent, cheap and skilled labor, educational



facilities, recreation facilities lead the district towards a phenomenal growth in social,

economical, industrial and trade sectors.

Belgaum is the best amongst Tier Two cities in Karnataka, which the Government

is taking active steps to promote industrially.

ABOUT FOUNDRY INDUSTRY

VISION: To make Belgaum Foundry Industry World Class, Internationally competitive

and Environment Friendly.

MISSION: To provide World Class Infrastructure Facilities to the Foundry Units in and

around Belgaum to make them competitive and achieve excellence of performance.

From the early 1970’s, Belgaum began developing as an important centre for the

manufacture of heavy machine tools. Foundries and units producing auto components are

to tjis day daunting the international markets. Autonagar houses 1200 auto related

industrial units making body building autocomponents, crankshafts and machine tools

that act as ancillary units to large scale enterprises. The Government of India recently

approved a Foundry Cluster Project costing Rs.24.7 Crores to improve infrastructure

coupled with research and development. Booming automobile industry attracts a great

leap in foundry sector of Belgaum.

Foundry forms one of the major industrial sectors of Belgaum. It is also one of the

major economies of Belgaum. There are 142 foundries at present in Belgaum, out of

which 76% is small scale, 21% are medium scale & 2% are large scale foundries.

There are mainly two types of foundries that is Ferrous & Non-Ferrous. The

Belgaum foundries produce different types of casting ranging from 500gm to 1.8Tons.

Quality concern has become one of the major aspects of casting. The major raw material

required for foundries are sand (washed & unwashed), resin & alloys. The major loss that



is incurred by the foundries is the wastage of sand as about 10-10,000Tons of sand is

wasted while transporting. The growth rate of these foundries is increasing drastically i.e.

in 2003-2005 the growth rate was 23% & in 2005-2006 the growth rate will be 34%. The

major threat cause to the environment due to these foundries is the fumes that is released

and the waste sand that is dumped in open areas. To avoid this certain measures are been

taken such as purifying of acidic fumes & providing a specific dumping area. The

Belgaum Foundry Cluster has planed to undertake a project “Sand Reclayning Machine”

in month of Dec-2006 which could be one of the major projects.

Some of the major foundries of Belgaum are Ashoka Iron works (I, II, III), A.K.P

Foundries, K.T.N Metals, J.P Foundries, Allucast, Allied Foundries etc. Among these

Ashoka Iron Works are major producers of casting which produces 3000Tons of castings

per month.

INFORMATION PERTAINING TO THE YEAR 2005-2006

Sl.No. Particulars Year 2005 Year 2006

1 Turnover 375crore 500crore

2 Exports 45% 85%

3 Employed persons 40,000 50,000



SHANTI IRON AND STEELS

Company profile

Name of the company: Shanti Iron and Steels.

Location : #690, @ Udyambag, industrial estate ,

Belgaum- 590008.

Web site : www.shantiiron.net.

YEAR OF ESTABLISHMENT : 1 JUNE 1974.

Business: Manufacturers of ‘Ready to Assemble’ graded Grey Iron components for

OEM’S mainly in Disel engine , tractors and machine tool industry.

Shanti Iron & Steel established in 1st July 1974 . It is an ISO 9001:2000 company and

are pioneers in the manufacturing of 'Ready to Assemble’ graded Grey Iron Castings.


http://www.shantiiron.net/


VISION: The company has the vision for next 10 years to pioneer in supplying

casting of highest at optimum price which are subassemblies / parts by it self

for OEM’S in automobile, engineering and industrial applications.

It wants to be the “Best single source solution provider for all its customer

casting requirements”.

MISSION: SIS set out to the most perfect partner in manufacturing and supply of CI

raw & machine casting used in automobiles and agricultural equipments like tractor &

water lighting diesel engine etc.



QUALITY POLICY

Shanti Iron & Steel wants to strive continually to improve the effectiveness of

the Quality management system through involvement & motivation of the employees so

as to meet customer requirements, to satisfy internal customer and enhance external

customer satisfaction.

STRATEGIC –OBJECTIVES

To REDUCE WASTAGE IN ALL INHOUSE ACTIVITY

To REDUCTION IN VARIATION

To REDUCE CUSTOMER END REJECTION

To provide the quality products.

To achieve cost effectiveness in the foundry and machine shop and in other

establishment totally in manufacturing fields.

To strive for employees empowerment team work & motivation shall contribute to

the growth of our organization.



BRIEF VIEW ABOUT AN ORGANISATION:

In 1974 – company was established with production of grey iron only.

1990 – Expansion of foundary-unit-II in same premises.

2000 – Expansion into higher value addition First CNC machine installed.

2001 – Received ISO 9002:1994 certificate from TUV Rheinland.

2001 – Mechanization of foundry with machine moulding, sand plant and mould

conveying system.

2002 – Second VMC machine installed.

2003 – Fully automatic cold Box, core shooter installed.

2003 – ISO certification upgraded from ISO 9002:1994 to ISO 9001:2000.

2005 - State of art new HMC makino a61 installed along with the CNC CMM.

2006 – second HMC a51 makino machine installed.

2007 : foundry capacity expansion phase-II.

2007 – Third HMC makino a61 machine installed.

Form of ownership: Partnership organization.

Initial Investment : as on 31-3-2009 = Rs 6crores.

Annual turn over: 25 crores.

Industrial area : 3.5 acres .

Located in udyambag area in belgaum city because

Easy availability of raw materials.

Transportation & labour facility.

Good infracture facility.

Branches : No

Total Workers in the organisation: 380 - 400

380 REGULAR and 20 ON DAILY WAGES



Departments : 7 departments viz,

Sales department

Purchase department

Accounts department

Dispatches department

Stores and spares department

Human Resource department

Quality department.

Licensing agreements : licensed under state and central government rules.

I. Central govt for commercial taxes under central exercise and customs.

II. Industry permission from DIC office.

III. Labour pollution control board.

Memorandum of Association:

Documents maintained in the different departments are as follows:

Factory Act – workers wages and salaries register are as per labour Act.

ESI/PF register for sharing both the partners and workers.

Dispatches and billing statements.

Articles of association:

Company meetings are conducted monthly with the workers, customers and other

concerned departments.

Patents and copy rights : no patents.

Branded goods are not manufactured, Issued quality assurance from ISO norms.



MANAGEMENT OF THE ORGANISATION

As it is a partnership firm , partners are having the different responsibilities namely,

Sri . Kantilal .V. Porwal - managing partner looking over all the affairs of the

organization.

Sri. Shantilal .V.Porwal – managing production unit.

Sri . Santosh.K.Porwal – marketing affairs.

And other partners are working in HUF

Capacity.

Area of operation: In India and in Abroad.



ORGANIZATION CHART


MANAGING PARTNER

STORES ACCOUNTS PRODUCTION QUALITY ASSURANCE

MARKETING AND PLANNING

HUMAN RESOURCE

Q.A. MANAGERMANAGERS ACCOUNTS

MAN AGER PRODUCTION

STORES

SUPERVISORS

MANAGER MARKETING & PLANNING

ASSISTANT MANAGER

STORES

ASSISTANT

CHIEF ACCOUNTAT

ASSISTANT PRODUCTION ENGINEER

CHIEF CHEMISTT

CHIEF INSPECTOR

TECHNICIAN INSPECTOR

WORKMENACCOUNTS ASSISTANT


COMPANY ACTIVITY FLOW/ PROCESS FLOW

pp


Measurement of performance monitoring

Corrective & preventive Action

Corrective & preventive Actions

Corrective & preventive Actions

New product Development

Sample submission & Approval

Correct Review

Production planning

Material planning

purchasing Receiving Inspection

Final Inspection

Stores Production -1 Foundry

Production-2 Machining

Sub contractor

Packing & Dispatching.

Training Calibration Control of NC products




WORK PROFILE OF EACH DEPARTMENT

Production Department

1. Plant location : Udyambagh , Industrial estate

Near khanapur road , Belgaum-590008.

2 .Plant layout : 2 Qupolas machines having the production capacity of 3.00tonnes

FURNASE = 1tonne per hour

3 HMC machines (heavy duty milling machines) imported from japan.

In 1974 when the company established only 3 simple operating machines at

present totally there are more than 200 machines are installed. A growth oriented

organization.

3. Total workers in the production process : 300 – 325 workers.

4. working hours : total 8hours i,e 8.00am to 5.00pm.

5. power required : 1640KB high tension line purchased from HSCOM.

6. Raw materials required : CI (cast iron)scrap, ferromanganese, pig iron, coke sand,

fire wood, …………………………etc.

7. Manufacturing products: oil sump, lub oil sump, side wall, gear ceasing, drum liner,

oil engine parts.

Manufacturing process:

The Industry has a daily production on an average of 1500 units.

Process:

Iron & steel & other raw materials.

Sand pouring: the meited is poured in the pattern to give a desired shape.

Lab testing: after the desired shape is given the product goes for lab testing for

testing the chemical composition.

Dye casting: here the product is processed in a machine.

Machining : this step gives the product accurate shape.



Lab testing: here the product is tested for the qualities like strength, dimensions and

hardness.

Packing : the final product is packed in such a way that it does not get damaged

during shipment.

The production takes place by using 2 methods:

1. Conventional method – manual

2. Modern method - CNC machine.The production centre has monthly performance

measurement system.

3. The measurement is done to actual s with the standards like defects, rejections,

customer complaints, sales……..etc.

Divisions:

1. Mechanical division: concerned with the breakdown of machinery.

Electrical division: concerned with loose electrical problems.

PRODUCTION PROCESS[planning/methods]

1. Incoming raw material

2. Moulding

3. Core making

4. Melting

5. Fettling

6. Stress Relieving

7. Painting

8. Machining

9.Pressure Testing

10. Analysis, Testing & Inspection

11.Packing.



INCOMING OF RAW MATERIAL:

In house raw material inspection & testing facility

In-house small pattern manufacturing, modification, repair

and storage facility (for 1000 patterns)

New pattern manufactured by approved pattern specialist.

Pattern made of Aluminum, wooden and resin.

In-house match plating facility.

MOULDING

Mechanized sand plant, 20TPH capacity each



Hand Moulding for bigger and heavier castings ( > 100Kg)

Green Sand, CO2 moulding process

Mechanized mould conveying system.



CORE MAKING

Cold Box core shooter, Compax make,50 litre capacity.

Cold Box ,Oil Sand, No bake,CO2 & shell core (sub-contracted) core making

processes .

Core Weight max up to 100Kg.

MELTING

Inductotherm 1250 kw Induction furnace, 500 Kg/hr with 2 crucible Cupola: 2.5

ton/Hr, 2 nos

FETLING

Knock out machine, capacity 500Kg

Shot blasting machine- 500kg/hr-2 nos.

Chipping, grinding and gauge inspection, wherever required.

STRESS RELIVING

Inside working space

1200x1050x900 mm, with 2 ton capacity

Programmable control unit to control the cycle.

PAINTING

Spray painting booth and dip tank facility

Primer paint as per customer specification

MACHINING

Makino a61 HMC Machine with X Y Z 730 x 630 x 630mm with HSK 63 Spindle

& 60 tools ATC - 2no's Makino a51 HMC Machine with HSK 63 Spindle and 40

tools ATC XYZ 560 x 560x 600mm and Hitachi Seiki HC500 HMC machine with

650 x 650x 550mm with BT50 spindle & 30 tools ATC.



Cincinnati make VMC with Acramatic 2100 controller. Axes traverse,

750x510x510 mm with ATC of 21 tools, Batliboi make VMC with Fanuc control,

axes travers 510 x 510 x 510mm with ATC of 21 tool - 2 Nos.

Mario Carnaghi(Italy) Make, Double column type planning machine with

grinding attachment with stroke of 3000 mm and traverse of 1000 mm. Max

height of job 800 mm.

Gullemin Sergot Pegarde Make, Single Column type Planning Machine with

milling attachment with stroke of 2000 mm and traverse of 1000mm.Max Height

of the job 600 mm.

WMW ( German) Make, boring machine with traverse of 1000x1000x600mm.

Horizontal &Vertical Milling machine( 5Nos) Radial drilling

machine(8Nos)Shapping machine, Lathe Machine (8Nos).

PRESSURE TESTING

Testing bench size 700 x 400 mm - 2 Nos

Testing Pressure up to 30 bar.

ANALYSIS TESTING INSPECTION

'SPECTRA' make Spectrometer Model Spectromaxx LMF 04

Laboratory with Strohelin apparatus, Digital muffle furnace,Distilled Water

Plant,Polishing disc,ASTM sand siever,Permeability Meter,moisture

tester,Compression Strenght M/c,Sand washer Standard sand

Rammer,Physical Balance.

Sand analysis.

Mould hardness and core scratch hardness tester.

Ferro lab- instant CE,carbon and silicon analyzer.

Digital temperature meter. Dye Penetrant testing.

BHN Machine and Poldi Hardness tester

Metallurgical Microscope. Radiography and ultrasonic testing outsourced.

Measuring instruments

Granite surface plates.



Digital height station,TRIMOS VA 600-measuring up to 600mm and accuracy 1

micron

CNC - Coordinate Measuring Machine Model SPectra 685, Accurate Make with XYZ

stroke 600 x 800 x 500mm respectively.

PACKING

Casting cleaned thoroughly with kerosene and then as per requirement cleaning on

Cleantech's High Pressure Machine with working envelope of Dia 1000mm x

400mm.

Machined surfaces applied with rust preventive oil.

Critical & Fragile area covered with plastic rings, wrapped in VCI paper/Plastic

sheet& sealed.

Finally packed in corrugated and wooden boxes as per customer requirement

EDP DEPARTMENT

ERP Software connecting all departments.

Advance shipment notice on customer's website.

AutoCAD Software to view and exchange CAD files.

QUALITY SYSTEM DEPT

The company works on the principal of continues improvement. Each department

are given objective goals in a respective work areas with a view to eliminate or

minimize it, so as to meet the overall companies quality policy and resulting into

improvement of quality management system.

Maintenance:

Trying to minimize the cost of production by proper scheduling. Time

management in the organization as per the china economy policy. To retain the

employees minimum wage is maintained. Using computer soft ware - “SAP” encompass

by Godrej software provider, it helps to maintain the documents in the organization.



INVENTORY MANAGEMENT DEPARTMENT: [stores]

Raw materials are purchased as and when required, depending on the order chart.

No storing and wastage of materials.

ISO norms for quality assurance =100% is maintained.

TQM = 97% production is accurate and 3% is loss.

Total zero defect programme is maintained .

Spare parts are produced as per the customer order.



Note : Due to recession period the organization has badly affected with the increase in

market prices.

Buyers will not schedule properly.

Iron and steel price are hiked suddenly.

In the recession period also the employees are retained by giving the minimum

wage .

LABORATORY:

It is used for the central process and testing the chemicals used in the production

process. It also tests the chemicals before entering in the stores. If any defects are found

in the materials receives, they are sent back to the suppliers.

The finished products are also tested for their chemical composition.

MARKETING DEPARTMENT

1. Area of marketing: In India and in Abroad.

2. Competitors : no

3. Raw materials: pig iron, coke, ferromanganese, cast iron……etc

4. Product profile :

Cast iron scrap, (CI graded) , Raw castings, machine castings.



About customers:

1. Addison and company LTD Chennai

2. kirloskar oil engines pune

3. Electronic a machines LTD pune

4. Same dude spare – ranipeth Chennai

5. warthsila - Finland

6. worthsila – Italy.

7. Atlas copco ltd



Annual sales: 25 corers.

Distribution channels : direct marketing i.e, from manufacturer to customers.

Marketing service: Has the expertise of supplying higher value added casting

components from a single point. In house facilities include foundry stress- relieving,

painting, machining, assembling and inspection and testing.

FORM PATTERN: Ready To Assemble or sub Assembled components.

Target market : for the firm is project companies & agriculture sector.

Pricing strategy: considerations while fixing the price for the goods-

a.Observing the price index in the market.

b.Taxes on goods viz- central exercise, CE sales tax, VAT’s ….etc

c. Transportation charges.

d.Price fixation for raw materials & products is vast one concerning in all the

organizations especially in growth oriented industries .

e. Iron and steel prices are fluctuating.

f. Export and import charges has to be considered.

Here in this organization, Quotation system is practiced for materials and given to

suppliers. As per the customer requirement production is processed. Inter national

transactions is monitored by “JP-MORGAN” And “UNITED WESTERN MONEY”

Organizations.

Conversion of dollars, Great Britain pounds, yens, Dinars Into Indian rupees and

comparatively other currencies. Foreign customers order to use the foreign imported

materials for the production of their spare parts as they required.



For example: 1. ATLAS COPCO co’m LTD - pune

A foreign collaborated in India is one of the main customer to shanti iron .

Price mechanism :

Imported the devices to manufacturing their parts.

Prices are negotiable

Agreed upon both seller & buyers conditions.

Considering the raw material charges, employes salaries & wages and other

expenses and over heads ….etc are considered in price fixation. Totally it is a vast

mechanism.

2. BOSCH India ltd world recognized export oriented co’m.

They are the manufacturers of different types of plugs required to all types of

machineries, the event is collaborated one having their Head office in USA from their

they are asking for the materials has to be sold and purchased. They have to work under

the norms of India and USA.

About Advertisement:

Through the electronic media- internet and broad band Offerings are displayed

through net, if the buyers & suppliers both requirements are agreed. then the transaction

is carried out.

Foreign customers are easily catched through websites.

Transaction procedure:

In this organization, Determine of product requirement: product requirement are

determined through personnel visits & by telephone with customer authorized

representative by marketing head.



Review of requirements: Review & finalization of product requirements are

carriedout by managing partner & marketing Head after resolving the differences

customer. Ability to meet defined requirements is reviewed with concerned departments.

A monthly marketing plan is prepared & issued to production by marketing, customer

before execution of orders confirms the requirements communicated verbally by customer

in writing. Marketing department maintains records of results of review.

Customer communication : constant communication with customers are

maintained by marketing Head through E-mail, telephone & mail services. The

communication will cover product information, schedules, amendments, customer

feedback/ companies. Delivery monitoring: monthly dispatch status is made in

coordination with production and stores department.



ABOUT FINANCE DEPARTMENT:

So far SHANTI IRON & STEELS is a partnership concern partners are the stake

holders regarding the capital nukes of the firm.Initial investment as on 31-3-2009 = Rs. 6

crores.

Main Functions are:

Day to day financial dealings.

Receipts and payments for sales and purchases.

Availing of working capital and term loans

Preparation of profit & loss account & balance sheet.

Payment of tax.

Sources of SIS:

Canara Bank, HDFC Bank Tilakwadi Branch Belgaum and partners investment.

Bank finances to the extent of Rs. 1.5crs , open cash credit = Rs.70 lakhs and Bill

of exchange Rs 80lakhs.

Open cash credit – net worth will be estimated on fixed assets.

General reserves of the industries helps in the time of contingencies.

RBI & federal banks asks reserves for healthy growth of industries as well as

economy.

Types of Accounts maintained

Sales department maintains the following records:

Selling register

VAT register



Receiving register

Sales invoice

Purchase register

Purchase invoices

Credit vouchers

Cash book

Stock book

Stores and spares register

Trial balance is the foundation of all accounts.

Monthly trial balance is prepared.

Trading and profit& loss account

Balance sheet

]Quarterly auditing of accounts

]Tax returns ………………………………..etc

Above are the responsible of Accounts manager as well as professional accountant

in the organization .





1.Managing partner looks after whole financial affairs of the firm.Accounts officer

takes care of respective transactions to be maintained in the books of accounts.

2.Purchase: the credit period for the purchase of raw material is determined.

3.Sales: the credit period and discounts to be allowed to the customers is decided and

also the entries of domestic and international sales transactions are maintained.

4.HR : wage distribution.


MANAGING PARTNER

ACCOUNTS OFFICER

PURCHASESALES HUMAN -

RESOURCE


HUMAN RESOURCE ACTIVITIES IN SHANTI IRON AND STEELS

RECRUITMENTS:

New recruits as & when vacancies arise – skilled, semi-skilled and unskilled.

SELECTION:

Candidates Resume.

An assessment form is given by the company.

Salaries are negotiable.

Preference is given for experienced candidate.

Partners of the organization will finally interview the candidate

And the best one is recruited.

TRAINING:

On job and external training is provided for employees. Safety , Motivation, House

keeping , Waste Elimination ………..etc On Job training: Assessment, skill-matrix, Re-

training.

SALARY PREPARATION:

Issue of input list to UNIT-1, UNIT-2 and Fettling.

Muster updation fortnightly before 2 th and 17 th of every month.

And for monthly before 4 th of every month.

Feeding for salary advance, refreshments, paid leaves, paid holidays, incentives ,

Bonus ….etc



SALARY GENERATION.



SUMMARY REPORT TO BE VERIFY

Wages distribution on 4 th and 19 th.

Screen of print slips has to be check up properly.

BP-DA, incentive, GP-PF, ESI, PTAX, TOT-ALLOW, TOT-DEDN, NET.

Final net pay list with Bank A/c NOs, Canara Bank Deductions, UTI transfer

cash payable.

Cash withdrawl from UTI Bank .

7 th salary distribution

Summary copy to Accounts – 8 th.

Abseentism – Notices, Termination- resigned, settlements etc.

STATUTORY REPORT

ESIC

Monthly challans

Monthly return

Quarterly returns

Half yearly returns

Yearly returns.

Deduction of labour welfare fund of Rs.3/- during December plus Rs.6/-

Employers share total Rs.9/- and cheque of total amount has to submit Commissioner,

B’’LORE.

The following important records are maintained:



FORM NO 11 – ADULT REGISTER

FORM NO 14 LEAVE WITH WAGES REGISTER

EMPLOYEES GRIEVENCIES LIKE ADV, ESIC FORMS,

PF WITHDRAWL, ETC.

FORM NO 30 & 31 INSPECTION OF CRANES & CHAIN PULLEY BLOCKS.

POLLUTION REPORT – WATER AND AIR POLLUTION.

COMBINED FORM NO 20, TO FACTORY INSPECTION AND COPY

TO ASST, LABOUR COMM, LAB OFFICER.

The total manpower consists of 380 employees-

Manager 1

Supervisors 12

Junior Engineers 3

Operators 32

Helpers 332.



CHAPTER –IV

RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

METHODOLOGY

The term methodology refers to the process, principle and procedure by which the

problems are approached and answers are seeked. The methods chosen by an individual

are greatly influenced by his/her assumptions interests and goals.

One methodology differs from another in this respect and hence the conclusions

arrived may also vary. This chapter aim to present a clear idea of research procedure used

in this study. Since the value of systematic and scientific research lies in the

methodology. The goals should be reached with accuracy using least amount of time

precise planning prevents the study from deviating from the aims and objectives, the

scope set forth. A clear undSerstanding of the problem statement, scope of the study

objectives research design, and tools of data collection is necessary as they lend

credibility and well act as catalysts in putting the concepts into practice.

Hence, these concepts have to be under stood first in order to approach the different

aspects of the study.

STATEMENT OF THE PROBLEM:-

The management world has seen many new ideas, concepts, through innovation

etc., which have emerged almost each day with the object of achieving result for the

organizations. One such concepts in TQM, which is almost done by, or other way using

different techniques, is QUALITY CONTROL, which was lead to many questions such

as what kind of METHODS ADOPTED IN IMPROVING THE QUALITY, It is



desirable to use different technique in REDUCING THE REJECTIONS, The study is

being under taken to know the relative importance and effectiveness of an ISO

PROCEDURES ON QUALITY CONTROL AT SHANTI IRON AND STEELS -

UDYAMBAG , BELGAUM .

The topic of the research report is “ A STUDY ON IMPACT OF ISO

PROCEDURES ON QUALITY CONTROL”.

OBJECTIVES OF THE STUDY


TO STUDY HOW ISO CAN HELP TO IMPROVEVISE THE QUALITY.

TO ANALYSE THE REASONS FOR REJECTIONS IN PRE-ISO PERIOD.

TO STUDY HOW ISO IMPLEMENTATION HAS HELPED TO REDUCE

REJECTIONS AND IMPROVE QUALITY CONTROL AT SIS.

RESEARCH DESIGN

Research design is a plan for the collection and analysis of data in a manner that aims at

maximum relevance. This study is in explorative research design method.

Exploratory Design: This method helps to gain the background information, to define the

terms, to clarify the problems and to establish the research objectives.

TIME AND PLACE OF THE STUDY

The study was conducted at “SHANTI IRON AND STEELS”. The factory is located at

udyambag, near khanapur road , Belgaum.

The study was conducted during General shift (8.30 am to 5.00 pm) from 15 th JUNE to

15th Aug 2009.





TOOLS USED FOR DATA COLLECTION

Primary data collection method : Interaction with the Accounts Manager and Quality

control supervisor in SIS.

Secondary data collection method :

Company Brochure

Collected Pre & post ISO period Balance sheets

Through Internet

Magazines

Guidelines provided to company by ISO team Bangalore – a true copy.

Techniques used for analysis:

Fish Bone Technique by Dr. Kaoru Ishikawa

Operating Ratio .

Inventory turnover Ratio.



A STUDY ON IMPACT OF ISO PROCEDURES ON QUALITY CONTROL AT

SHANTI IRON AND STEELS

INTRODUCTION TO ISO

The INTERNATIONAL ORGANISATIONS FOR STANDARDISATION (ISO)

was founded in 1946 in Geneva, Switzerland where it is still headquartered. Its mandate

is to promote the development of international standards to facilitate the exchange of

goods and services worldwide.

Recognizing the importance of quality systems, the ISO has developed a series of

standards, which is popular as ISO 9000.

These international standards were jointly developed by all ISO member countries

and are being adopted throughout the world.The ISO 9000 is a series of standards in

quality management systems, which can be adopted by all types of organizations

belonging to the government, public, private or joint sectors, producing and supplying all

kinds of goods , services and software.

These standards are generic and not specific to any particular product. They can

be used for managing the quality of output of manufacturing and service industries.

These standards were published for the first time in 1987. The aim was to

effective document quality management system requirements which needed to be

implemented to attain customer satisfaction. The implementation of ISO 9000 guides in

building the quality into products or services by preventing deficiencies during design,

production, installation and servicing processes instead of making expensive post-

production inspections and warranty claims and reworking.These standards were revised

for the first time in 1994. Based on experiences of several thousand companies, these

standards were revised again, the improved version came in 2000.



By definition, ISO 9001:2000 is a series of generic standards on quality assurance

and quality management.

ISO 9001:2000 was created by the International Organization for Standardization:

Founded in 194

Based in Geneva, Switzerland

Over 110 member bodies

U.S. Representatives to ISO is the American National Standards Institute

To date, ISO has created in excess of 3700 standards which are used in various

industries around the world.

Meeting Customer expectations and requirements is the main objective

of ISO 9001:2000

ISO Registration provides assurance that customers needs are being satisfied In the family

of ISO 9001:2000 standards, there are three contractual quality

system models:

ISO 9000 generally applies to manufacturing companies that design and build

their own products and is comprised of 20 quality system requirements.

ISO 9002 applies to facilities that whose products are designed and

serviced by a subcontractor and who must adhere to all but one of the 20 system

requirements (excludes the design control element). We are ISO 9001:2000

Registered.



ISO 9003 has the most limited scope and only requires conformance to

final inspection and test procedures. Must adhere to 16 of the 20 quality system

requirements.

ISO 9000 is a family of standards, guidelines and technical reports. This is the

premier internationalquality assurance award. This family includes:

ISO 9000:2000 - a starting point for understanding the standards. It defines the

fundamental terms and definitions used in the ISO 9000 family

ISO 9001:2008 - This is the requirement standard you use to assess your ability to

meet customer and applicable regulatory requirements. Certain third party

companies are authorize to assess you to this standard and provide you with the

certification. This replaces the older ISO 9002 and ISO 9001:2000 standards.

ISO 14001 falls under the ISO 14000 family and is an international standard to

evaluate an organization’s environmental management systems

BENEFITS OF ISO 9001:2000

Boosts any company’s reputation through the reputation of the International

Organization

for Standardization (ISO) and recognition of the Quality Management System;

Continuous improvement on your Quality Management Systems and processes

which improves the reliability of your internal operations to meet customer

requirements;

Over time, an overall increase in your performance that can positively impact your

bottom line.

Demonstrating a real commitment to service quality can transform your corporate

culture as employees welcome the need for constant improvement;

8 PRINCIPLES OF ISO 9001:2000


http://www.bestpricecomputers.ltd.uk/profile/iso14001.htm

http://www.bestpricecomputers.ltd.uk/profile/iso14001.htm






IMPACT OF ISO PROCEDURE IMPLEMENTATION AT SHANTI IRON AND

STEELS

WHY SIS OPTED ISO QUALITY NORMS (9001:2000) .

Shanti Iron & Steel was established with an objective of manufacturing the CI castings

only. m/s Addison & com ltd and kolapur machinery ltd are some of the major customers

to SIS who are since from 1974, they are in need of both rough castings & machine

castings as well ,at that time SIS had only 3 machines was unable to meet customer

requirements, even though some customers are interested in SIS due to one major

machine called “ITALIO MARIO CARNAGI” double laith machine which gives 100%

accuracy . this type of machine was only 2 in Karnataka state, one was with HMT

Tumkur and other is with SIS. So SIS is one of the quality castings producer.

With a plan of expansion of unit and plan for Export & Import of goods & needs

for this the organization registered with EPCG I,e, Export promotion council &

Guarantee of India. To encatch the foreign customers and to enhance the sales in

domestic.

EPCG of India has informed SIS to apply for ISO certification with a special audit

programme under the International specific organisation which is meant for Audit . ISO

is a certifying agency in all departments of any organization to conduct the audit

programme under its guide lines.

ISO 9001:2000 certifying authority TUV Rhineland company of German is one of

the agency ment for ISO certification for Indian and Foreign for quality assurance.

Under this agency SIS Issues Guide lines for Quality Assurance.

Some documents are required to maintain for ISO certification.

1. Audit report from chartered Accountant.

2. Financial Records such as certified balance sheet, transperancy in all records.

3. Quality policies and objectives, Administration procedures



4. Export & Import documents……. Etc

After sending the profile of the company for verification of council perusal,

The team of ISO certifying agency will visit the organization, they conduct a

meeting with top management, negotiates and provide the required guidelines to the

organization.

One of the major problem of SIS was Rejection of casting machines by customers

due to poor quality of raw materials used , no proper planning in production process,

mainly for quality assurance and to build a good image of the organization in the minds of

customer …etc for these reasons the company opted for ISO certification.





TO STUDY HOW ISO CAN HELP TO IMPROVISE THE QUALITY IN SIS

After the visit of ISO team TUV Rheinland from Bangalore, they had a meeting

with functioning of SIS with their paper presentation of their requirements for

certification, under this they have suggested SIS some initial measures to be taken as per

their guidelines to the following departments.

1. Administration department

2. Accounts department

3. Sales department

4. Quality assurance department

5. Machine shop department

6. Labrotary department

7. Stores & spares department

8. Fettling department

9. Foundry unit

10. Inward & outward

11. Maintenance & security

The ISO authority has asked SIS to prepare some of their requirements under

representation applicable to each of above said departments.

Administrative Department:

In this dept the SIS partners I.e. Top management shall establish, document,

implemrntation & quality management system and continually improve its effectiveness

in accordance with the requirements of International standards.

Shanti Iron has following the steps given below

I. Identify the processes needed for the quality management system and their

application throughout the organization.



II. Determining the sequence & interaction of these processes.

III. Determining the criteria and methods needed to ensure that both the operation and

control of these processes are effective.

IV. Ensures the availability of the resources and information necessary to support the

operation and monitoring these processes.

V. Monitor , measures and the processes.

VI. Implements the action necessary to achieve planned results and continual

improvement of these processes.

These processes are managed by the organization in accordance with the requirements of

this international standard.

Accounts Department:

1. In accounts SIS maintains the records as per the FERA Act and Indian Acts too.

2. An Encompass SAP software is used in the company to maintain the records.

3. If any fraud in accounts keeping the agency is punishes with an imprisonment cash

penalties for violating the business resolutions.

4. Under these SIS has to maintain the neat & transperancy in all the departments.

Sales Department:

1. In sales the certification authority regarding the existing records and what has to

maintain with records is verified and suggested.

2. Sales records is a backbone of organization which is looking after revenue & trading

of the organization, the same has been verified by TUV and suggested to minimize

the documents.

Prior to ISO certification SIS was maintained

1.Rough delivery notes.

2.Fair delivery Notes.

3. Hand written bills

4. Over writing bills



5. Manual calculations of taxes.



After ISO Certification

Tax invoicing policy system in sale bills, as per VAT Act and exercise Act.

Time of removal of goods required by central state commercial tax departments.

Same has to be posted in electronic media.

QUALITY ASSURANCE DEPARTMENT

The ISO Agency had provided the following guide lines in improving the quality

management system:

Quality sector has came across the thing has to be negotiated with an intension of

good quality has to be manufactured the certification team has asked SIS to improvise

the qualities in purchasing the raw materials and qualities in different types of raw

materials required by the steel.

Especially the agency facilitated to purchase the good quality of raw materials

which yields 100% contents which are tested by their own LAB, each & every material

purchased should be tested in labrotary the yield tested should be recorded in the papers

the record should be bring to their Notice this is first round & first change. Their will

visit to SIS after Every I, II, III changes implemented.



EXAMPLES OF RAW MATERIALS AND IT’S CONTENTS

1. Pig Iron yields manganese,& silicon contents has to be tested.

2. Coke : fuel moisture content . in coke it is highly required for melting purpose.

China is the leading producer for coke.

3. Sand: silica content.

4. Copper : ferrous manganese.

5. Brazalian – pig iron.……………………………………..ETC.

In general quality management system documentation shall include:

a. Documented statements of a quality policy and quality objectives.

b. A quality manual,

c. Documented procedures required by this International standard,

d. Documents needed by the organization to ensure the effective planning,

operation and control of its processes, and

e. Records required by this international standard,Records shall be established

and maintained to provide the evidence of conformity to requirements and of

the effective operation of the quality management system.

f. Records shall remain legible , readily identifiable and retrievable.

g. A documented procedure shall be established to define the control needed for

the identification, storage, protection, retrival, retention time and deposition of

records.

Quality policy

a. Is appropriate to the purpose of organization.

b. Includes a commitment to comply with requirements and continually improve

the effectiveness of the quality management system.

c. Provides a frame work for establishing and reviewing quality objectives,

d. Is reviewed for continuing suitability.



MACHINE SHOP

The ISO team has visited the machine shop of shanti Iron& steel, carefully

identified the weakness of machine shop s , like over oiling , machining loss….etc the

team advised to adopt a type of mechanization or accelerating the machines with

sophisticated in foundry 1.

Due to this adoption foreign customer will not reject the materials.

SIS had replaced the manual operated machines to computerized machines, i,e.

HMC- Heavy duty machines especially CNC machines. (computer Numeric controlled

machines).

SIS had 2 CNC machines which is fully utilized, 1 CNC has the capacity of

producing 100 machines for 8 Hrs.

Here the highly qualified &skilled operator has been appointed to look after

machining process in CNC .

When the SIS had purchased the first CNC machine from Japan fully

computerized HMC machine for Rs. 1,85, Lakhs against the Investment susidy Rs.10

lakhs .Investment subsidy for fixed Asset especially the machines is declared by central

Govt to promote the Indian Industry under the guide lines of financial & officers of a

GOVT of Karnataka. It observes the credibility of different departments of SIS and with

a communication to the Banker. i.e. Canara Bank – Tilakwadi Branch Belgaum. Banker

will collect the documents from SIS for repurkasion to sanction of the subsidiary. Here

the bank term loan facility is availed.

Such type of encouragements to boost the production units are entertained by

central& state GOVT.

The machine castings of SIS are supplied to –

1. Atlas copco com ltd.

2. New Holland Tractors.

3. Same Dued Italy



4. Worth silla Finland. …..etc the exports are enhanced due to accuracy in

machining and good quality of raw materials used.

LABROTARY DEPARTMENT:

As per guidelines of ISO SIS has maintained the separate LAB to Test CI scrap,

Manganese , coke , pig iron, ..etc are tested with high range chemicals in different

processes in different machines for this purpose a specially manufactured carbon cups

from suge foundry solutions pune has brought, here the yield from raw material is keenly

exchequed gives correct and efficiency in the raw materials purchased. In pre ISO period

the materials are tested in cluster foundry centre in belgaum city, which was delayed

processes and not gives accurate result.

STORES AND SPARES DEPARTMENT :

In the shanti Iron & Steel the value of stores department is more than 5 Crs . here

the required materials are filled with machine tools , belts , oil lubricants, kerosene, disel

are stored for day to day requirements.

ISO 9000:2002 verified the system of stores & spares before the certification it

was not sophisticated and now fully computerized , each & every invoice with material is

Inward & recorded for this a concerned responsible person pass Goods Inspection

Report(GIR) ,under the supervision of owners entity.

This type of systematic application makes the Inward& outward system of Goods

hasel free one because leakages and losses are minimized.

FETLING DEPARTMENT :

In this department produced machines are cleaned with a process of short

blastings of products this processes is known as GrInding , pasting as per the customer

requirement.

FOUNDRY



In the foundry the meeting with supervisors of SIS with a ISO team has been

discussed with a processes adopted in manufacturing the castings .

How the processes of moulding , mixing of required raw materials. After

moulding , it has verified core making after this processes the pouring of materials is

usually followed here the ISO advised to replace the existing system of cupola with

Furnase melting.

cupola – usually the coke & fire wood are charged by burning processes which

creates heavy smoke and it has to be redressed with every 12 melts other wise it causes

machining loss, instead of this the electric furnase the processes is fully electrified and

smoke less which causes no air pollution it gives the accuracy for machining, under the

ISO norms it has been improved the quality with hasel free less air and water pollution.

MAINTAINENCE

Maintainence supervisors are appointed in all the departments especially in

foundry unit for every machine had a experienced supervisor, to look after the machines

and control them.

Infrastructure Development :

The SIS had provide and maintain the infrastructure needed to achieve conformity

to the product requirements- it includes -

a. Buildings, work space and associated utilities.

b. Processes equipment (both hardware & software) and

c. Supporting services such as transport & communication.

SECURITY: This system in SIS is essentially motivated with skilled security persons

and security is closed , monitored round the clock under the ISO norms . For this 8

persons are appointed to security Grievances each shift has been placed by 4 members for

24 Hours.



TO IDENTIFY THE REASONS FOR REJECTIONS IN PRE ISO PERIOD

Rejection is the major issue in shanti Iron & steels due to many reasons.

Types of Rejections can be categorized into

1. Manufacturing Rejection

2. Labour Rejection

3. Technical Rejection

4. Machine Rejection

CAUSES FOR REJECTION OF MATERIALS ANALYSED THROUGH

“FISH BONE TECHNIQUE”



ABOUT FISH BONE TECHNIQUE

What is a Fishbone diagram?

Dr. Kaoru Ishikawa, a Japanese quality control statistician, invented the fishbone

diagram. Therefore, it may be referred to as the Ishikawa diagram. The fishbone diagram

is an analysis tool that provides a systematic way of looking at effects and the causes that

create or contribute to those effects. Because of the function of the fishbone diagram, it

may be referred to as a cause-and-effect diagram. The design of the diagram looks much

like the skeleton of a fish. Therefore, it is often referred to as the fishbone diagram.

Whatever name you choose, remember that the value of the fishbone diagram is to

assist teams in categorizing the many potential causes of problems or issues in an orderly

way and in identifying root causes.

When should a fishbone diagram be used?

Does the team...

Need to study a problem/issue to determine the root cause?

Want to study all the possible reasons why a process is beginning to have

difficulties,

problems, or breakdowns?

Need to identify areas for data collection?

Want to study why a process is not performing properly or producing the desired

results?

How is a fishbone diagram constructed?

Basic Steps:

1. Draw the fishbone diagram....

2. List the problem/issue to be studied in the "head of the fish".

3. Label each ""bone" of the "fish". The major categories typically utilized are:

The 4 M’s:

Methods, Machines, Materials, Manpower

The 4 P’s:



Place, Procedure, People, Policies

The 4 S’s:

Surroundings, Suppliers, Systems, Skills

Note: You may use one of the four categories suggested, combine them in any fashion or

make up your own.

The categories are to help you organize your ideas.

4. Use an idea-generating technique (e.g., brainstorming) to identify the factors

within each category that may be affecting the problem/issue and/or effect being

studied. The team should ask... "What are the machine issues affecting/causing..."

5. Repeat this procedure with each factor under the category to produce sub-

factors.Continue asking, "Why is this happening?" and put additional segments

each factor and subsequently under each sub-factor.

6. Continue until you no longer get useful information as you ask, "Why is that

happening?"

7. Analyze the results of the fishbone after team members agree that an adequate

amount of detail has been provided under each major category. Do this by looking

for those items that appear in more than one category. These become the 'most

likely causes".

8. For those items identified as the "most likely causes", the team should reach

consensus on listing those items in priority order with the first item being the

most probable" cause.



Manufacturing Rejection:

In pre ISO period rejection is Renasty because in the floor the unskilled workers

who is working in the manufacturing processes, depends upon his technique, experience

in use of raw materials and proportionating the raw materials .Usually in the foundry the

first phase is mixing the sand with chemicals & several application of raw material while

forming the pattern for mould.

Improper mix of raw materials.

Use of poor quality materials

Over pouring of liquid materials

Over grinding of machines & over machining by vernier caliper.

No clarity in melted material which leads to glow holes in castings.



LABOUR REJECTION

Due to mishandling of materials.

Improper mix of using the raw materials.

Such as scrap, pig iron, coke, sand …etc is not mixed in a sequential.

Due to qupola machine – it is a boiler which is to be dressed for every 12 melts,

by fire bricks and ceramic bricks. Stand by arrangement has to be made

alternatively , labour will not bring to the notice that it should be redressed he will

go on manufacturing it leads to glow holes in castings as well as proper pattern is

not formed ultimately leads to rejections.

TECHNICAL REJECTIONS

Due to lack of technical feasibility.

Lack of experience of workers.

Negligence of moulder leads to rejections.



Efficiencient skill of fettler is required.



MACHINING REJECTIONS

Over machining by vernier caliper and over grinding.

Over oiling & pouring of liquid materials leads to glow holes in castings.Above

are the main causes of rejection of materials in SIS. Rejection rate was very high

upto 20% the company was bearing huge losses in pre ISO period.

To study how ISO implementation has helped to reduce the rejections & improve

quality control in SIS.

After the ISO adoption: Quality policy has entrusted in Shanti Iron & Steel by ISO Team.

Quality policy: a. Good quality of Raw materials used as per the customer

requirement.A common foundry cluster in belgaum , SIS uses this lab to test the

materials.

Iso enterance made a separate lab , which costs Rs.25 lakhs.

Leadership Techniques:

The skills of supervisors, skilled & unskilled workers can create a good

atmosphere on customery focus also examined in SIS.

Here the ISO team advised some of the measures to be taken regarding the techniques

used in –

1. Executives- working in manufacturing department they should be careful about

quality management.

2. Value & Expectations: Appropriations made before production and analysis

afterproduction.

3. Contribution of the employees to be taken into consideration before and soon after

the working pattern of supervisors should be recognized befor their working in

the floor.

4. Quality management: quality policy is well managed and working upto customer

satisfaction.

5. Performance profile of the company is exchequed by the customers, ISO team

alerts the organization in all the way to perfom better way.



6. Commitment in SIS is fully satisfied upto determinatory level and the quality

policy is well planned before and achieved as per the plan, totally it is effective

after the impact of ISO is verified.

7. Data regarding the performance: Here the effective role in improving the quality,

improving the performance, improvements in operation recording of the datas

through out the departments.



CHAPTER –V

ANALYSIS AND INTERPRETATION

CALCULATION PART AND ANALYSIS

INVENTORY TURN OVER RATIO:

It is ascertained by dividing the sales by the closing stock also called as stock turn over

ratio. This ratio reveals the number of times stock is replaced during a given accounting

period. This ratio reveals the number of times stock is replaced during a given accounting

period.


Year ITR=SALES/CLS.STOCK RATIO

1999 41,153,114.98/4,815,000.00 8.546

2000 39,424,168.20/4,003,000.00 9.848

2001 41,259,386.46/3,924,500.00 10.513

2004 84,678,207.88/9,126,000.00 9.278

2005 132,027,352.84/6,135,000.00 21.52

2006 149,370,627.94/5,573,697.00 26.799

2007 194,025,950.00/6,170,000.00 31.446

INVENTORY SALES

TURNOVER RATIO = CLOSING STOCK


INTERPRETATION: Higher the ratio indicates that finished stock is rapidly

turnover (sales) .

Standard is 8 times in a year . If the actual ratio is more than 8 times it indicates

that more sales are effected and effective inventory management and goods are sold many

times in a year.

From the above graph in the year 1999 – 8.546 times in pre ISO period and after

the entry of ISO it has been increased to 21.52 times in 2005 and 31.446 times in the

year 2007. A positive effect of ISO procedures can be observed.




EXPENSES RATIO

OPERRATING RATIO:

YEAR OR= FACTORYEXPS/NET

SALES*100

RATIO

1999 11,147,160.02/41,153,114.98*100 27.087

2000 11,183,108.34/39,424,168.20*100 28.366

2001 11,165,809.94/41,259,386.46*100 27.062

2004 18,007,573.81/84,678,207.88*100 21.265

2005 23,560,628.17/132,027,352.84*100 17.845

2006 27,718,477.15/149,370,627.94*100 18.556

2007 37,785,742.76/194,025,950.00*100 19.474

2008 46,915,318.79/257,212,529.40*100 18.239

OPERATING = FACTORY EXPENSES * 100

RATIO NET SALES


IN PERCENTAGE CALCULATION FOR 5 YEARS

RATIO IN % = 28.366/27.06= .047

27.087 .047

28.366 .95

27.062 .78

21.265 .83

17.845 .39



Interpretation: The lower the ratio greater is the profitability , the higher the ratio the

lower the profit. From the above graph in the year 2000 I,e pre ISO period it was 32%

and in the year 2005 it has came down to 13% (19 % is decreased). The organization is

said to be in good position. Effective implementation of Iso procedures and and had a

positive impact on quality of the materials , the rate of rejection of materials had been

reduced.



IN POST IMPLEMENTATION OF ISO PERIOD THE FISH BONE TECHNIQUE:



CHAPTER –VI

FINDINGS

FINDINGS OF THE STUDY

1. Quality refers to “fitness for use” , it plays a vital role in any of the organization .

it creates a positive impact and build the credibility worth of the organization.

2. This project Reflects that effective Implementation of ISO 9001:2000 procedures

on quality control lead to reduction in the rejection of materials.



3. In the “Inventory Turn Over Ratio” –the stock turn over ratio in pre ISO period

was only 8.54 times and in introduction of ISO post period increased to 31.44

times. The sales turn over of the company has been rapidly increased.

4. In the operating Ratio: OR = factory expenses/net sales*100The expenses has

been decreased by 32% (in the year 2000) to 13% (in the year 2005), by

increasing the Net sales yearly .

5. By analyzing the study of the organization , ISO guidelines ensures the

organization quality control reduce cost by improving the quality.

6. Modernization & mechanization I,e. introduction of CNC tooling machine,

electric furnase, SAP software to maintain the records..etc lead to overall

development of the organization and icreased the accuracy in production.

7. Through the “Fish Bone Technique” the root cause and effect of the management

problem can be clearly identified.

8. Rejection of materials was the major issue of the organization, in pre ISO

certification period, by the entry of separate labrotary testing of raw materials

contents & yield of each item reduced the rejections and improved the quality of

the product.

9. ISO quality assurance enhanced the International trade activities, from the year

2006 the SIS is exporting the goods to Finland ,& Italy.

10. By overall study of the organization SIS, it can be said that

Quality assurance from the ISO 9001:2000 had minimized the losses and reduced

the rejection rate.



By the guidelines of the ISO TUV Rhienland team, the infrastructure as well as

the methods of production procedures in SIS has positively impacted .



CHAPTER –VII

LIMITATIONS AND CONCLUSIONS

LIMITATION OF STUDY

This study is not free from limitations ; the results of the study are not conclusive

therefore this study from some limitations-

This project is just a brief summary of ISO procedures implementation on quality

control , QC not only depends upon ISO Norms many other factors which I have

not mentioned because my objectives of the study is limit to specific topic.

The area of specialization is in the field of finance; the aspects of marketing & HR

are not covered completely.



The project limits in the statistical figures because some confidential records of

the company can’t be disclosed.



CONCLUSION

From the above study, It can be concluded that Implementation of ISO 9001:2000

procedures has positively affected the organizational development and has helped in

reducing the rejection rate of casting machines at Shanti Iron And Steels.

ISO guidelines creates a cordial relationship among all the departments

like production, foundry unit , finanace, quality control, etc..,. It improvises the quality of

the products as well as in working procedures. So that the common goal of the company

can be achieved by Team work with proper planning and procedures adopted by the

company.

ISO 9001:2000 certification enhanced the credibility worth of

organization. In plant –Training of the project, has helped me to get the practical

knowledge of the Industry as well as application of theory concepts into practical

aspects.





CHAPTER –VIII

BIBILOGRAPHY

BIBILOGRAPHY

TOTAL QUALITY MANAGEMENT BY POORNIMA CHARANTIMATH

FINANCIAL MANAGEMENT BY KHAN & JAIN

COMPANY BROCHURE

INTERNET .



ANNEXURE

ISO GIDELINES TRUE COPY BY COMPANY

BALANCE SHEET & INCOME STATEMENTS.


