Quality Policy, ISO documentation, ABC analysis and JIT production

1. RME-085
Total Quality Management
By:
Dr. Vinod Kumar Yadav
Department of Mechanical Engineering
G. L. Bajaj Institute of Technology and Management
Greater Noida
Email: vinod.yadav@glbitm.org
Topic
- Quality Policy
- ISO Documentation
- ABC analysis
- JIT production

2. Quality Policy
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
- Quality Policy: A brief statement
that aligns with an organization's
purpose and strategic direction[1].
- Provides a framework for quality
objectives, and includes a
commitment to meet applicable
requirements (ISO 9001, customer,
regulatory).
- Helps to attain the target of
continuous improvement.
- Quality policy: Incorporates an
organization’s vision or mission
statement and core values.
- Set and approved by top management with the
help of their employees.
Example of quality policy[1]
- We will consistently provide products and services that
meet or exceed the requirements and expectations of
our customers.
- We will actively pursue ever-improving quality through
programs that enable each employee to do their job
right the first time and every time
Fig. 1: Nestle - Quality Policy

3. ISO Documentation
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
- To become ISO certified, a company
or organization must submit several
documents that report its internal
processes, procedures and standards.
- These documents (or QMS)
determines that a company is able to
provide quality products and
services consistently [2].
- For example. The international standard
(ISO 9001:2015) gives a list of requirements
for a system that determines that a company
is able to provide international-quality
products and services consistently.
ISO 9001:2015 glimpses[2]
- Newest edition published in 2015.
- International quality standard used world wide
Improves customer experience and satisfaction.
- Ten clauses of requirements Through the
implementation of the standard, ISO 9001:2015
aims to improve customer experience and
satisfaction.
- Aims to improve the internal system of a
company so that it is able to produce quality
services and products.
- Ensures continuous improvement.
- The ISO stipulates QM principles that assures
QMS is properly implemented.

4. ISO 9001 Mandatory Requirements — Documents and Records
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
ISO 9001:2015
To be certified compliant with ISO 9001:2015, the following
documents must be submitted.
1. Monitoring and measuring equipment calibration records.
2. Records of training, skills, experience and qualifications
3. Product/service requirements review records
4. Record about design and development outputs review
5. Record about design and development inputs
6. Records of design and development controls
7. Records of design and development outputs
8. Design and development changes records
9. Characteristics of product to be produced and service to be provided
10. Records about customer property
11. Production/service provision change control records
12. Record of conformity of product/service with acceptance criteria
13. Record of nonconforming outputs
14. Monitoring measurement results
15. Internal audit program
16. Results of internal audits
17. Results of the management review
18. Results of corrective actions
Documents Vs Record
Documents (Information used to support an
effective and efficient organizational operation)
are created by planning what needs to be done
[3].
Example: Quality policy, quality objectives,
quality manual, organization chart, business plan
etc.
Records (Evidence about a past event) are created
when something is done and record the event [3].
Documents can be revised and change, where as
records don’t (must not) change.
Example: Evidence of fitness , Basis used for
calibration or verification, Design and
development Inputs, Design and development
controls etc.

5. ABC Analysis (Minimize the carrying costs of inventory)
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
ABC analysis is a type of inventory categorization
method in which inventory is divided into three
categories, A, B, and C, in descending value.
- A has the highest value items.
- B is lower value than A
- C has the lowest value.
- Inventory management and optimization in general
is critical for business to help keep their costs
under control[5].
- ABC analysis works towards this goal by letting
management focus most of their attention on the
few highest value goods (the A-items) and not on the
many low value, trivial goods (the C-items).
Fig. 2: ABC Analysis (Pareto curve)[4]
ABC analysis works by breaking it down in the following ways[5]:
A-items: 20% of all goods contribute to 70-80% of the annual consumption value of the items
B-items: 30% of all goods contribute to 15-25% of the annual consumption value of the items
C-items: 50% of all goods contribute only 5% of the annual consumption value of the items
Annual consumption value =
annual demand x item cost per unit

6. ABC Analysis (Minimize the carrying costs of inventory) contd.
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII
semester 2019-20, and is not intended for wider circulation.
Advantages of ABC Analysis[6]:
1. It ensures better control over the costly items in which a large amount of capital
is invested.
2. It helps in developing scientific method of controlling inventories. Clerical costs
are considerably reduced and stock is maintained at optimum level.
3. It helps in maintaining stock turnover rate at comparatively higher level through
scientific control of inventories.
4. It ensures considerable reduction in the storage expenses. It results in stock
carrying stock.
5. It helps in maintaining enough safety stock for C category of items.
Limitations of ABC analysis[6]:
- ABC analysis is not the ultimate exercise in inventory control. It needs to be supplemented
with detailed monitoring and executive judgment.
- Items falling in category C maybe essential for smooth production. Therefore, their
inventory level should be carefully monitored.
- The items falling in category C may be many and lot of time may be spent on their
management. As a result adequate time may not be available for effective management of
A and B categories.

7. Just in Time (JIT) Production [Concept: Taiichi Ohno of Toyota; after World War2]
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech
Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for wider circulation.
Just in Time
- Management philosophy that calls for the production of
what the customer wants, when they want it, in the
quantities requested, without delayed[7].
- Avoids large inventory stocks - Reduced lead time - less
carrying cost.
- Each process will only produce what the next process in
sequence is calling for.
- JIT uses simple visual tools known as Kanbans to pull
production through the processes according to what the
customer actually take.
Benefits of JIT
Reduced payment
timeline
Reduced inventory cost
Reduction in required
space
Reduction in handling
equipment
Reduced lead time
Quality improvement
Increased productivity
Employee
empowerment

8. Requirements for implementing Just in Time (JIT) Production[7]
Note: The contents used in this slide is being used for academic purposes only, and is intended only for students registered in B.Tech Mechanical Engineering at AKTU Lucknow in VIII semester 2019-20, and is not intended for
wider circulation.
Reliable Equipment and Machines
Well designed work cells
Empowered workforce
Standardized Operations
Pull Production
Single piece Flow
Reduced customer’s supply time

9. References:
[1] https://the9000store.com/iso-9001-2015-requirements/iso-2015-requirements-for-leadership/quality-policy/ (Accessed on 22.04.2020).
[2] https://www.iso-9001-checklist.co.uk/iso-9001-requirements.htm (Accessed on 22.04.2020).
[3] https://www.bizmanualz.com/implement-iso-quality/what-is-the-difference-between-document-control-and-record-control.html (Accessed
on 22.04.2020).
[4] https://sites.google.com/site/wwwvergotoncom/home/abc-analys/abc-curve (Accessed on 22.04.2020).
[5] https://www.invoiceberry.com/accounting-terms/abc-analysis (Accessed on 22.04.2020).
[6]http://www.yourarticlelibrary.com/inventory-control/the-a-b-c-always-better-control-method-of-inventory-control-with-statistics-and-
figure/27939 (Accessed on 22.04.2020).
[7] https://leanmanufacturingtools.org/just-in-time-jit-production/ (Accessed on 22.04.2020).

10. Thank you