Click on the link to buy - http://imojo.in/1h1t0 This presentation is aimed at helping small and medium businesses in their Quality Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies,ISO9001 clauses, 7QC tools and various templates for MIS analysis.

2. Introduction
Not quite sure if this book would be useful for you?
If you belong to any of the category of people mentioned below, then this book
is for you.
• Manufacturing Sector expects the engineers to be Job-
ready. However, the engineering curriculum does not
cover some of the basics required in the manufacturing
sector. This book would help in understanding the
basics, so that a fresh engineer can perform his role
immediately aCer joining the company.
Fresh Engineers
interested in joining
Manufacturing Sector
• This book can serve as an “InducIon Manual” for the
new Supervisors and Engineers in the shop floor. Job
ResponsibiliIes, Do’s and Don’ts for each role, Tools
and Techniques and MIS reports are explained for each
department. This would help in faster career growth.
Supervisors / Engineers
in the Shop floor
• This book can serve as a Quick Guide to teach you and
your employees, the basics of manufacturing
organizaIon. This would also help you in managing your
people, building the organizaIon to the next level by
creaIng strong processes.
Second GeneraIon
Entrepreneurs

3. Why this book?
• In India, several studies conducted on the employability skills state that
only 5% to 10% of the Engineers graduating from the Institutions are Job-Ready
/ Employable.
• Industries require workforce which are readily employable, so that they
do not have to spend a lot of money and effort on providing basic skills and on-
the-Job training
• While large organisations have Induction training for their employees,
many medium and small scale companies do not have proper structure to
provide this training
• Their employees work with very little awareness of the best practices of
the industry, making them frustrated, fire-fighting for day-to-day activities and
results in a lot of stress
• This also makes the companies uncompetitive, leading to poor business
performance, resulting in poor motivation of the people, and this becomes a
vicious cycle
• This publication is aimed at providing the fundamentals of manufacturing
management which are not offered by any of our institutions/curriculum to
Engineers and Diploma Holders who are joining Manufacturing Industry
• This is our initiative to empower the professionals in performing more
efficiently and effectively helping the organization and the nation
• In addition, this gives us immense satisfaction that we are giving
something back to the ecosystem we are working in and are able to challenge
the traditional way of thinking and practices.

4. What do we cover in the book?
A typical manufacturing company has Production, Production Planning,
Quality, Stores, Purchase, Maintenance, Finance & Accounts, Marketing,
Human Resources, Admin , Information Technology and Sales functions.
However, we would cover
1. Production
2. Production Planning
3. Purchase
4. Stores
5. Quality
6. Maintenance
functions in this book, since these are the major areas, an Engineer or a
Diploma/Degree Holder joins after his/her degree.

5. Structure of the contents
Each department / function is explained in the following structure:
• General Introduction to the Function / Department
• Organization Structure of the function
• Roles and Responsibilities of the key incharges
• Process Flow in the function
• Tools and Techniques required in the function
• Pictures and tables to demonstrate the activities (wherever applicable)
• MIS Reports and the Analysis to be done
• Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for
each function

6. Chapter 1
Introduction

7. Introduction to Manufacturing
Company
A manufacturing company produces goods (or materials) using tools, machines,
chemical processing, biologic processing or formulation and with the use of
people. Manufacturing ranges from small hand-made products (Handicrafts
industry) to large / Hitech products (Aircraft / Bullet Trains).
A typical manufacturing company procures many parts/raw materials from
various suppliers (or Vendors), process them (discrete manufacturing or flow
manufacturing) and sell to its customers. These customers may be the end users
of the product or may use the products to make other products. For e.g. A glass
manufacturing company procures silica and other raw materials for making
glass. This can either be sold as end product to consumers (for home use) or to
an Automotive factory to use these glass for cars (of course, the grades would
be different).
In this book, we consider a typical manufacturing company consisting of a few
discrete manufacturing processes (e.g., Turning, Milling, Polishing, etc.).

8. There are various functions (or departments) in organisations, each focusing on
a few major activities.
1. Production Function - Focuses on the manufacturing of the product
2. Purchase Function - Focuses on purchasing / buying the raw materials
and consumables required for the production
3. Stores Function - Focuses on the receiving the incoming raw materials,
holding them properly and issuing them to the user department when there is a
need for the materials
4. Maintenance - To keep all the machines ready for production. To prevent
break-downs of machines,
Each function consists of a group of persons (or a single person) performing
their tasks.
A company is headed by the CEO / Directors / Owners depending on its
structure. Various levels of managers across various functions report to the CEO
/ Directors. Supervisors / In-charges report to the managers and they manage the
operators (shop floor employees across various levels)
Pic: 1.1 - Various Levels of Employees
CEO / VP / Promoter
Process steps that take time,
(VA)
A process step that transforms or
shapes a product or service, which is
eventually sold to a customer.
resources, or space, but do not add
value to the product or service.
Directors / Promoters
Managers (various levels)
Supervisors / Incharges
(various levels)
Operators / Employees
(various levels)
Senior Management Level
Middle Management Level
Junior Management Level
Employee Level

9. Internal and External
Customer
External Customer: A customer who buys the product / services of a
company. All the functions in an organization exist to fulfil the need of these
end customers. This customer is not a part of your organization but pays your
organization for the products / services.
Internal Customer: A member of the organization providing goods / services
for other members inside the organization. For e.g. Stores issues raw materials
to production. So Production function is a customer for Stores. Inside
Production function, each operation sends the product to the next operation thus
becomes a supplier to the next operation. These are called Internal Customers
and Internal Suppliers.
Pic: 1.2 - Internal Suppliers and Customers
Stores Production
Internal CustomerInternal Supplier

10. Goals of each department
Each department works with a set of goals which are aimed at satisfying /
exceeding their Internal / External customer’s needs. These goals are called Key
Result Areas (KRA’s) or Department Objectives / Targets.
Generally there are 6 major categories of objectives / KRAs:
1. Productivity
2. Quality
3. Cost
4. Delivery
5. Safety
6. Morale
These KRA’s needed to be measured through various Indicators. They are
called Key Performance Indicators (KPIs). For e.g. Productivity can be
measured by indicators like “output per person per day”, “Planned production
vs. achieved production”, “Utilisation of the machine”, etc. Similarly, Quality
can be measured by “Reduction in defectives”, “% of yield”, etc.
All the departments will have KRAs and KPIs to measure their performance.
Generally there would be a Monthly Review Meeting (MRM) to discuss the
performance and take corrective and preventive actions.

11. Chapter 2
Quality

12. What is Quality?
• “Quality is fitness for use” – Juran
• In an organization, Quality function means, the department which
independently works on attaining specified levels of product / process quality of
the core busines
• Quality Department can either be a quality control department or a
Quality Assurance department
• Quality Department is the final In-Charge of the quality at the customer’s
end
Pic: 7.1 - Quality Control Vs. Assurance
Quality Control Quality Assurance
Focus on Product Focus on Processes
Analysis after
Completion of work
Prevention is better
than cure
Operation specific Core value;
Organisation-wide
Individual/department
oriented
Leads to team work

13. Quality Function’s Structure
• Head of Quality Assurance reports to the CEO of the company
• Normally there would be In-Charges for the three focus areas of Quality:
• Incoming Inspection
• In-process or online inspection, and
• Final Inspection or Finished Goods Testing or Batch Release Testing –
previously done as Quality Control
• In Manufacturing Industries, Testing Laboratories comes under the QA.
Pic: 7.2 - Organization Structure of Quality Function
Head - Quality
Assurance
In-Charge
Incoming
InspecIon
In-charge
In-process
InspecIon
In-Charge
Final InspecIon

14. Responsibilities of QA
Incharges
Pic: 7.3 - Responsibilities of Quality Incharges
Incoming Inspection
Incharge
In-Process Inspection
Incharge
Final Inspection
Incharge
Incoming Inspection: Ensure the Raw materials used in
production are as expected and fit for use
Supplier Development: Asserting the suppliers of their
ability to supply consistently good quality and improve
them
Identify the parameters of the machines and/or
intermediates which are critical to quality of the Final
Product and help production to avoid problems in those
parameters
Final Inspection: Check the conformance of final
products to the customers’ requirements and ensure
that the customer who is going to receive them get
satisfied with the products.
Customer Feedback:Get the feeling of customers upon
using our products and develop our internal product
specifications

15. Quality Plan
• All the five major aspects are covered in the Quality plan Document in
the following manner:
• Specification for Raw Materials and Parameter to be checked upon
receipts
• Critical To Quality (CTQ) parameters of machine settings or intermediate
products and checking or verification points
• Final product specifications and parameters to be tested for the
conformance to customers’ requirements.
• Sampling and Testing methods along with the action to be taken in case
of any deviation for all the above
• In a nutshell, the quality plan describes how the quality of product /
process is managed in an organisation.

16. Quality Plan – Example
• Let us assume the Customer requirement is metal sheets for fabrication
which measures 10 x 5 inch metal plate in Green color with two holes
• Upon accepting the Purchase order from the customer, the company
works on defining the product requirements as per the internal understanding.
This becomes the product specification and the target output quality.
• The customer requirement of 10 x 5 inch metal plate in Green color has
translated in to:
• MS / SS / Aluminium sheet
• 252 mm length,126 mm width and 0.4 mm thickness (not given in the
product requirement and developed internally based on factors such as strength,
pricing, etc.)
• Powder coated with Green color of Standard Color (with code - abcd)
with
• Two holes of 2 mm diameter as per the drawing

17. Drawing based on Customer’s
Requirement
Pic: 7.4 - Drawing based on Customer’s Requirement

18. Internal Specification
• This final requirement/drawing is worked backward - the internal
requirements needed are listed and those become our in-process specifications.
• At Painting Section, Painting Color (abcd) and the coat thickness are
internal parameters.
• At Cutting section, Size specifications are –
• L : 256 +/- 2 mm
• W : 130 +/- 2 mm (4 mm extension is made for bending)
• The holes as per the drawing
• For inward inspection, the sheet thickness, dimensions and paint color
forms a specification

19. Quality Management System -
QMS
• A quality management system is a set of co-ordinated activities to direct
and control an organisation ensuring that the organisation is continually
improving its performance.
• Quality Plan is an integrated component in the Quality Management
System
• A QMS enables an organisation to achieve the goals and objectives set
out in its policy and strategy.
• It provides consistency and
satisfaction in terms of methods, materials,
equipment, etc, and interacts with all
activities of the organisation, beginning
with the identification of customer
requirements and ending with their
satisfaction, at every transaction interface.
• It can be envisaged as a “wedge”
that both holds the gains achieved along
the quality journey, and prevents good practices from slipping

20. Defects and Non-Conformance
Defective:
• When an item fails to meet its specification and / or known to fail to meet
its intended use, the item/product is called a defective. E.g. A casting with a
blowhole
Defect:
• The exact reason / cause for the problem is called the defect. i.e. the
blowhole
Nonconformity:
• Any non-fulfillment of requirement is called nonconformity. E.g. a
casting without blowholes is required. But the process produced a casting with
blowhole. This is a non-conformity

21. Corrective and Preventive
Actions
Correction:
• An action to eliminate a detected nonconformity is called a correction.
• A correction can be a rework, reprocess, repair, degrade, replacement or
rejection.
Corrective Action (CA):
• Actions to eliminate the cause of detected nonconformities are called
corrective actions. (Actions to eliminate the recurrence of nonconformity).
• Timely Solution – One-time solution
• Reactive Solution – after the problem has occurred
Preventive Action (PA):
• Actions to eliminate the causes of a potential nonconformities or other
undesirable potential situations are called preventive actions. (Actions to
eliminate the occurrence of nonconformity).
• Proactive solution – before the problem has occurred
Quality tools can be used (Pareto charts, Fish bone analysis, etc. / 5 Why
analysis / other tools) for taking CA&PA

22. 7 QC Tools
Seven QC tools are fundamental instruments to improve the quality of the
product
• Seven QC tools are utilised to organise the collected data in a way that is
easy to understand and analyse
• They are used to analyse the production process, identify the major
problems, control fluctuations of product quality, and provide solutions to avoid
future defects
1 - Check Sheet
• A check sheet is a pre-designed format for collection of data that
encourages organized collection and group’s data into categories.
• Categories are created in advance and may be added as needed. A check
mark is added for each example of a category. The marks are added to
determine subtotals.
• When to use it? To keep track of the parameters of an ongoing process. It
can be used to track events by such factors as timeliness (on time, one day late,
two days late, etc.); reason for inspection failure (appearance, performance,
etc.); person accomplishing the task (sales calls per representative) etc.

23. 1 - Check Sheet
Example: A company wants to check the weight of bags of sugar that are
supposed to weigh 100 kg. The resulting checklist is shown in the following
Table. The checklist indicates that the machine is not filling all the bags within
the specification.
Sugar Bag Weight Check Sheet - (Specification : 100kg. ± 2 Kg.)
Pic: 7.6 - Check Sheet & its data entry method

24. 2 – Graphs
• Graphs are used for the purpose of comparison of visual
representation of data collected.
• The most commonly used graphs are in the form of Bar charts, Line
charts and Pie charts.
o Bar charts can be used to compare revenue projections , growth
in sales volume over a time period
Pie Charts can be used to represent the region-wise revenue share / category-
wise contribution to the profits etc.
Pic: 7.7 - Graphs and its uses

25. 3 – Histogram
•A display of the distribution of data by category.
•It is a more effective way of displaying data than a table of figures (Check
Sheet) because it gives a visual indication of relationships.
•When to use it? Use a histogram to observe whether data falls into a specific
pattern. The chart will indicate the extent of variation.
•Example shown here is the same data shown in the check sheet.
Observe how the histogram visually creates an impact
Pic: 7.8 - Histogram

26. 4– Pareto Analysis
• “ 80% of the problems are caused by 20% of the causes”
• Focus on ‘Vital Few’ – Leave out the ‘Trivial Many’
• It is a principle discovered by Pareto
• This is an universal philosophy and can be applied anywhere!
• In a nation, 80% of the wealth is owned by 20% of the people ) and the remaining
20% of the wealth belongs to the 80% of the people
• In Purchase department, 80% of the total purchase value would be contributed by
the top 20% of the items
Pic: 7.9 - Pareto Analysis and its uses

27. 5 - Cause and Effect Diagram /
Ishikawa Diagram
• Cause & Effect Diagram is an analysis technique for identifying the possible
causes of an observed problem or effect. It aims to trace process problems
upstream in order to identify their root causes and to enable action to remove
them
• This is also called Fish Bone diagram (or) Ishikawa Diagram
• Cause & Effect diagram is a simple but powerful tool for getting,
objectively, to the bottom of the problem. It can be used to:
• Define a problem
• Break problems down into their constituent elements
• Help generate ideas / add structure to brainstorming
• Identify relationships between causes (which are often present but
hidden)
• Assist decision making

28. 5 - Cause and Effect Diagram /
Ishikawa Diagram
Also Called as Fish Bone Diagram
How to use Fish Bone diagram
•Name the Head of the fish with exact problem
•Draw minimum of four branches as shown in figure depicting 4Ms – Machine,
Material, Method and Man
•Brainstorm:
•What can be the possible causes?
•Search causes among machine first, then material, method, and man.
Pic: 7.10 - Fish Bone Diagram / Ishikawa Diagram

29. 6 - Scatter Diagram
•A means for showing a relationship between two variables.
•The diagram creates a coordinate for each variable, and then plots the
occurrences where the values intersect.
•To find out whether there is a correlation between the variables.
•Establish vertical and horizontal axes with appropriate scales.
•Usually, the horizontal axis is the one over, which you have control. Plot each
data point. Look at the pattern.
•The more closely the dots group along an axis, the stronger the correlation. The
more scattered they are, the weaker the correlation.
Pic: 7.11 - Scatter Diagram

30. 7 - Control Chart
• Control Chart is a means of monitoring a process according to tolerance
limits.
• The chart allows you to track the normal variations that indicate a process is
in control and to determine when it goes out of control.
• A control chart is closely related to Statistical Process Control. It's a visual
means of representing whether a process is within statistical limits.
• When to use it: For any process with frequent and measurable outcomes.
• How to use it: Take a random sample of outcomes and determine upper and
lower control limits.
• Once the control limits have been determined, plot the outcomes over time
or occurrence.
• If a value is obtained that is outside the control limits, it's necessary to
investigate the cause. If all the values are within the limits, then the process
is under control.
Pic: 7.12 - Control Charts

31. MIS Reports
The list below explains the various parameters to track, the reports to generate,
the frequency and the person-in-charge in the Quality function:
Report - 1
Report Name Incoming Quality Report
Nature of Report Quality trends of all items coming into the stores
Frequently Monthly
Who Prepares it Quality Manager
Analysis Points
What are the items that frequently arrive with quality
issues? What are the defects found on them? Are the
defects clearly communicated to the suppliers? Why is
the supplier not able to improve the quality level? What is
the corrective action and Preventive Action? When is the
problem expected to get solved?

32. MIS Reports
Report - 2
Report - 3
Report Name Final Inspection Report
Nature of Report Product-wise / Defect category-wise - pareto analysis
Frequently Monthly
Who Prepares it Quality Manager
Analysis Points
What are the defects and their frequency? Is there a
trend? Why are the defects not controlled at the in-
process inspection level? What is the pareto of
defects? Cost involved in rework? What is the rejection
rate? What are the tools used for analysis? What are
the Corrective and Preventive Action taken?
Report Name In-process Inspection Report
Nature of Report Product-wise / Defect category-wise - pareto analysis
Frequently Monthly
Who Prepares it Quality Manager
Analysis Points
What are the defects occurring in-process? Is there a
trend? What is the pareto of defects? Cost involved in
rework? What are the tools used for analysis ? What are
the Corrective and Preventive Action taken?

33. MIS Reports
Report - 4
Report Name Customer Complaint / Feedback report
Nature of Report Product-wise / Defect-wise / Customer-wise
Frequently Monthly
Who Prepares it Quality Manager
Analysis Points
What are the types of customer complaints? What is
the pareto analysis of defects? Why the defects are not
identified before dispatch? What are the corrective and
Preventive Action taken to ensure this problem is not
repeated? How is our action communicated to the
customers?
Report - 5
Report Name Analysis of the Quality Issues
Nature of Report Defect-wise / Product-wise
Frequently Monthly
Who Prepares it Quality Manager
Analysis Points
Types of defects? Pareto analysis? Root cause and
their effect on the product, processes and cost?
Summary of the corrective and preventive action taken.
Results of the various actions taken? Future action
plan?

34. What are the KRAs and KPIs
of your department?
Goals /
KRAs
Performance Indicators /
KPIs
Measure
Current
Level
Target
Productivity
Rejections / Reworks
Reduction
in PPM 80% 100%
Quality
Number of QC circle projects
- Cost Savings
in Rs.
Cost
Reduction in Cost due to
improved Quality
in Rs.
Prepare your department’s KRA’s in case your organization does not have
them.

35. Learning’s from the Section
At the end of Quality Section, Are you clear on the following?
• Difference between Quality Control and Quality Assurance
• Responsibilities of QA incharges in the ‘Incoming’, ’In-Process’
and ‘Final’ Inspection areas
• Quality Management Systems
• Quality Plan
• Internal Specifications
• Difference between Defects and Defectives
• Corrective and Preventive Actions
• Various tools of Quality
• MIS reports and the analysis to be done

36. Interested in buying the book? Please click on any of the following links to buy.
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37. Meet the Author
Ananth is the CEO and Founder of Hash Management Services LLP. Ananth
has over 12 years of experience in the areas of Implementation of Lean
Manufacturing concepts, Quality Management, and Supply Chain Management
initiatives. Some of the industries he works/worked with are Textiles, Leather
and Footwear, Castings and Forgings, Electronic Equipment, Pump
Manufacturing, Fabrication, White goods, Heavy Engineering and Light
Engineering sectors. He works with Industry bodies like CII, FICCI and
currently working with International Labour Organization (ILO) for
implementing their SCORE Program in a few auto ancillaries in Chennai. He is
also an empaneled Lean Manufacturing Consultant (LMC) with National
Productivity Council (NPC) and working on Implementing Lean Manufacturing
principles for Small and Medium Enterprises.
Prior to Hash Management Services LLP, he was a consultant with Deloitte`s
consulting practice in India. Earlier, Ananth worked with Titan Industries Ltd,
as a Senior Engineer responsible for productivity improvements and various
quality initiatives. He holds PGDM from the IFMR, Chennai and a Bachelors
degree in Mechanical Engineering from the Government College of
Engineering, Tirunelveli.
Please visit www.hashllp.com to know more about the ways we help
manufacturing companies improve their operations and profitability.

38. Disclaimer
The advice contained in this material is for a specific audience and not for
general public. The author designed the information to present his opinion about
the subject matter. The reader must carefully investigate all aspects of any
business decision before committing him or herself. The author obtained the
information contained herein from sources he believes to be reliable and from
his own personal experience, but he neither implies nor intends any guarantee of
accuracy. The author particularly disclaims any liability, loss or risk taken by
individuals who directly or indirectly act on the information herein. The author
believes the advice presented here is sound, but the readers cannot hold him
responsible for either the take or the result of those actions.

39. Acknowledgements
This book would not have been a reality without the contribution from V N
Shiju who worked with me on creating the contents, L S Kannan contributed
Quality section, Veerabaghu, my mentor and guide, my wife Jeyalakshmi who
helped me in documentation, A S Senthil Kumar, my first boss who helped me
understand the basics of manufacturing industry, my colleagues at Deloitte and
all my friends who stood by me during some of the toughest times in my life.