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A Project Report On IDENTIFY POTENTIAL OF ISO: 9001-2000 & CALIBRATION IN RURAL & SEMI URBAN AREA At PUNYAM MANAGEMENT SERVICES PVT. LTD. NATIONAL CENTER FOR QUALITY CALIBRATION Ahmedabad Submitted To Mr. Devang Jhaveri Managing Director Submitted By Jighesh Shah On July 18, 2004

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Page 1: rural and semi urban area

AProject Report On

IDENTIFY POTENTIAL OF ISO: 9001-2000 & CALIBRATION IN RURAL & SEMI URBAN AREA

At

PUNYAM MANAGEMENT SERVICES PVT. LTD.NATIONAL CENTER FOR QUALITY CALIBRATION

Ahmedabad

Submitted To

Mr. Devang JhaveriManaging Director

Submitted ByJighesh Shah

On

July 18, 2004

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N. R. Institute Of Business ManagementG.L.S. Campus, Ahmedabad.

(Affiliated To Gujarat University)

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CONTENTS

At................................................................................................................................1

Submitted To.........................................................................................................1Submitted By..........................................................................................................................1

Preface..................................................................................................................4

Acknowledgement.................................................................................................5

Executive Summary..............................................................................................6

Company profile...................................................................................................8

PUNYAM GROUP ORGANIZATION STRUCTURE.....................................10

Introduction........................................................................................................23

Problem Statement..................................................................................................23

Research Objectives................................................................................................23

Background..............................................................................................................23ISO: 9001- 2000 ..................................................................................................................23Calibration ...........................................................................................................................29

Methodology........................................................................................................30

Sampling Design......................................................................................................30

Research Design.......................................................................................................30

Data Collection........................................................................................................31

Data Analysis...........................................................................................................31

Limitations...............................................................................................................31

Findings..............................................................................................................33

ISO: 9001-2000........................................................................................................33

Calibration...............................................................................................................39

Conclusion..........................................................................................................47

Summary and Conclusions.....................................................................................47

Recommendations....................................................................................................47

Appendixes..........................................................................................................48

Appendix A..............................................................................................................48

Appendix B...............................................................................................................50

Bibliography........................................................................................................52

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Preface

It is my pleasure to present this project this project before you. The study was conducted during the period of my summer training held in the month of May-July2004, which is a part of our curriculum to get a degree of MBA, which I am pursuing at NRIBM, Ahmedabad under the prestigious University of Gujarat.

The beginning of any journey is deciding where you want to go. The beginning of the life you want is deciding first as to what precisely you want in life. This is the first fundamental & basic step to take in making a successful of life. Knowledge is power & knowledge is strength & knowledge supplies you the know-how. To derive full benefit out of your knowledge you must act, work hard and put in sustained effort, becoming wishes by experience in the process.

The MBA program includes a position devoted to practical study where by each student is placed in a company during the summer’s affects completion of a semesters, the student is supposed to undertake a project with the company which allows an opportunity to select the theoretical knowledge taught to practical application besides giving them a feel of an actual workplace.

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Acknowledgement

No trainee can deny the intellectual debt that he receives from the organization during his training period, I cannot in full measure, reciprocate the kindness shown and contribution made by various persons in this endeavor of mine. I shall always remember them with gratitude and sincerity. I would like to take the opportunity to express my profound thanks to and gratitude to my guide respected Mr. Devang Jhaveri (MD, PUNYAM MANAGEMENT SERVICES PVT. LTD.) For his unceasing effort, encouragement, help and valuable guidance at every step which has contributed the most towards the success of this project. I am also thankful to staff of PUNYAM to for giving their full support and providing me necessary direction for the various topic related to the project.

JIGHESH SHAH

Ahmedabad, 18th July 2004

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Executive Summary

The research is carried out to identify potential of ISO: 9001-2000 & Calibration.

According to research ratio of people aware of name of

ISO is 1.9 to 1. But due to many misconceptions and

other reason we found people be able to answer a single

right name having ISO is 0.27 to 1. So we can say that

they are in awareness stage till now.

About 87.5% Respondents want to go for ISO for sales

growth, 80% for cost reduction.

Ignorable numbers of respondents are aware of name of

PUNYAM & NCQC.

About 72.5% of respondent answer as reason why they

not go for ISO till now is Punyam’s customers never ask

it.

Very few numbers of companies which do not required

to calibrate by law and certification purpose go for

calibration. Ratio of respondents doing internal &

external calibration is 0.96 to 1.

30% of respondents give high cost as reason for not

doing calibration.

No one is aware of NABL. So it is not giving any added

advantage to PUNYAM being NABL acridities

laboratory.

24% of clients prefer calibration to improve product

quality.

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It is important to understand consumer behaviors before going into

rural market so that we can get enough advantage of potential of this

market.

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Company profile

PUNYAM (PMSPL) was born in November'1995 in the field of consultancy for ISO: 9000, other international standard, and Management areas and is growing and having total 250 clients for various types of certification and very rich experience in ISO and management consultancy. Group of 12 qualified engineers and management graduates (M.B.A) having experience of different type of industry and done ISO: 9001, 2000 and other international certifications for many clients.

Having more than 225 clients Certified for ISO: 9000 and 1% of Total Certified Companies in India.

PUNYAM is having its office in Vapi for clients located near Vapi areas as well as Mumbai.

At present Punyam is taking 9 new clients per month and completing their work within 3 months. After every 3 days average 1 client of Punyam is getting ISO: 9001, ISO: 14001, HACCP, CE Mark or any other certificate.

All the Punyam clients have got ISO: 9000 series certificate from the leading certifying body like KPMG, BVQI, SGS, LLOYDS, DNV, TUV, U.L. LAB. Etc.

Punyam is also working for vendor Developments & Auditing of companies in India on behalf of leading international customers.

Punyam’s Clients include Capacity-wise No. 1 Companies in Asia as well Leading group of India like Reliance Industries Limited. Modern Terry Towels Limited. (Modern Group) Gujarat Telephone Cables Limited.(GTCL Group) Meghmani Group Of Companies Metrochem Industries Limited Shri Digvijay Cement Co. Ltd. Binani Cements Limited. INDEXTb (Industrial Extension Bureau., Govt. of Gujarat

OrganizationPay back of Punyam’s consultancy is less than 2 months because of

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quantification of measurable goals and providing continual improvement platform.

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PUNYAM GROUP ORGANIZATION STRUCTURE

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DIRECTORDEVANG JHAVERI

OFFICE ASSISTANT

ACCOUNT MANAGER

TECHNICAL MANAGER

MARKETING MANAGER

COMPUTER INCHARGE

CALIBRATION INCHARGE

QUALITY EXECUTIVES

SALES REPRESENTATIVE

ENGINEERS(MECH)

ENGINEERS(ELECT)

ENGINEERS(I/C)

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PUNYAM IS COMMITTED FOR Personal Involvement & Commitment from first day. Optimum Charges. To Complete Project in Minimum Period (Within three Months).

Professional Approach To Depute Dedicated Persons To Suit Client Requirements. Hard Work And Get Work Done From Others Strengthening clients by system establishment to make their house

in proper manner. Establishing system in Finance and other departments for Fund

flow Management. To establish strong internal control with the help of system.

WHY MANY UNITS HAD TAKEN PUNYAM’S CONSULTANCY LOW COST : Practical suggestions recommended and having vast experience in the bigger as well as small companies. Experience in all kinds of industry like Engineering, Textile, Chemical, Machine manufacturer, Electronics, Electrical, Pharmaceuticals, etc. Professional approach and more than 12 highly qualified persons comprise Engineers / MBA from various disciplines with extensive experience are involved in Punyam’s team. RELIABLE : Practical suggestions recommended and having vast experience in the bigger as well as small companies. Experience in all kinds of industry like Engineering, Textile, Chemical, Machine manufacturer, Electronics, Electrical, Pharmaceuticals, etc.

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Professional approach and more than 12 highly qualified persons comprise Engineers / MBA from various disciplines with extensive experience are involved in Punyam’s team. The Quantifiable measurable improvement objectives are made based on Punyam’s rich experience to establish continual improvement. FASTER (3 TO 5 MONTHS) : The painstaking work of documentation is done by us based on detail study of your system. Personal involvement and commitment from day one by us. Punyam’s team of professionals monitor your activity to gear up certification process. Punyam is working since 1995. Team:At present 12 Engineers are working having qualification of B. E. / M.B.A Work Area

1. ISO: 9001 series and international certification consultancy ISO: 9001 CE MARK SA 8000 ISO:14001 OHSAS 18001 WHO GMP HACCP BS 7799 ISO:17025 (NABL ACCREDITATION)

2. Management consultancy Strategic Management HRD

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Marketing Purchase Production and Quality Control Finance

3. Calibration of all type of instruments

NABL ACCREDITATION ISO 17025 Certification standard for requirements for the competence of Testing and calibration LaboratoriesApplicable to All type of testing and calibration laboratories blood banks, Pathology Laboratory etc.Accreditation issued byNational Accreditation Board for Testing and Calibration Laboratories (Dept. of Science and Technology) Govt. of IndiaRequirements Documented system for management requirements and technical requirements, Trained manpower, standard methods or Validated non-standard methods, Periodic checking for measurement of uncertainty, participation in inter lab comparison or proficiency testing, calibration of instruments through NABL Accredited Laboratory, Quality Policy, R&R Study, Quality Checks, Management System implementation

CE MARK CECommon product standard based on European Communities defined norms.Applicable to All machineries equipments, Electronic/ Electrical/ mechanical parts and many moreCE Certification issued bySelf-certification or certification by notifying Body.Requirements

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Selection of directives applicable to the products, preparation of design data of the products, preparation of Technical file, training to the employees, Risk assessment manufacturing and QC procedure,product safety, EC declaration for conformity (incase of MDD) Nomination of EU representative, product labeling as per CE mark, Inspection and testing as per directives, product standard implementation, updating of technical file as and when changes in the design.

WHO GMP Who GMPWorld Health Organization based Good Manufacturing Practices.Applicable to All food and pharmaceutical industries including bulk drug units.Certification issued byDrug Controllers/FDA Commissioners of the concerned statesRequirements Compliance with the requirements of schedule applicable considering product manufactured, validation of process and products, maintaining controlled environment, calibration of instruments, Preparation and follow-up of SOP's, preparation of site master file, separate area for dispensing, manufacturing, QC etc. Maintaining Master formulaic card and Batch manufacturing records, follow-up of sanitation schedule and hygienic conditions, Microbiol tests of the products.

OHSAS 18001 OHSAS 18001Occupation health and safety Management systemApplicable to All types of manufacturing and service organizationCertification issued byAccredited Certifying BodyRequirements Implementation of all applicable health, safety legal requirements, Hazard Risk, assessment and evaluation, Documentation, SOP to control risk, Health check-up of employees, Management plans,

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Auditing of system, Monitoring and Measurement of critical parameters, Management review.

SA 8000 SA 8000Social Accountability Certification.Applicable to Textiles, Garments, Suppliers to multinational company and International chain of stores.Certification issued byAccredited Certifying BodyRequirements Implementation of all applicable statutory and regulatory requirements for payment of wages, child labour, forced labour, working hours, work environment condition, documented system, monitoring, safe work practices, discrimination, disciplinary practices, compensation, management system etc. ISO: 14001Many Organizations are concerned to achieve and demonstrate sound environment practices. To ensure this, they are undertaking reviews or audits of their environmental performance. To be effective, these reviews and audits needs to be conducted within a structured management system, integrated with overall management activity and addressing all aspects of desired environmental performance as per ISO 14000 standard. Punyam Management Services Pvt. Ltd. having considerable experience in this filed assist the Indian industry to adopt these standards and as a result, certifying bodies are auditing companies for system implemented to conform to ISO 14001. Punyam with its experience of assisting a number of companies towards ISO 9000 certification in almost all industry sectors can assist company in the implementation of a certifiable Environmental Management System based on ISO 14001. BENEFITS OF IMPLEMENTING AN ENVIRONMENTAL MANAGEMENT SYSTEMS (ISO 14001):

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(A) ENVIRONMENTAL Reduce energy and other resource consumption. Use of natural resources. Disposal of unwanted resources. Address environmental issues before they become a problem. Establish regular reports and implement monitoring system.

( B ) FINANCIAL Increase efficiency and reduce wastage and pollution control cost. Bankers and Backers concerns. Reduce insurers requirements.

( C ) PUBLIC IMAGE Highly visible marketing tool . Make " GREEN " corporate image. Increase employee confidence.

( D ) LEGISLATION & REGULATION Ability to meet National / International legislation. Meet regional variation in legislation.

ENVIRONMENTAL MANAGEMENT SYSTEM ADDRESS Environmental objectives and targets beyond regulatory requirements. Changes in regulation and legislation. Adequacy of resources and environmental information. Environmental records. Environmental cost / benefit analysis and accounting methods. Environmental training. Environmental aspects of products and services. Incorporation of environmental considerations in design and marketing. Analysis of resources consumption (Energy, fuels, materials, etc.) Waste minimization and recycling initiatives. Uses of hazardous processes.

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Use and disposal of hazardous material. Transport policy Natural resource conservation.Recording complaints and follow up Visual impact, noise and odours Environmental probity of suppliers Environmental hazard and risk assessment Environmental aspects of emergency planning Environmental aspects of investment policies Areas of potential improvement in environmental performance PUNYAM STEPS FOR ISO : 14001 IMPLEMENTATION ISO : 14001 Awareness Training for top and middle management . Initial environmental review ( IER ) Advise in formulating environmental policy and setting environmental objectives & targets . Suggest in Developing Environmental management plans ( EMPs ) . Submission of document kit ( Environmental manual, procedures, SOPs , forms ) . Advise in preparation of Environment documents and aspect impact analysis.Workers awareness training for ISO : 14001. Adequacy audit of documents by PUNYAM . Internal auditor training . Presence in first internal audit and corrective action suggestion on NCRs. Second internal audit by PUNYAM auditors. Presence in pre-certification and certification audit by certifying body.

HACCP

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Hazard analysis and critical control point ( HACCP ) system is becoming very important and the basic requirement of ensuring the Quality of the product from the health and safety aspects. Most of the advance countries such as USA, AUSTRALIA, CANADA and UAE Countries have either fixed up or fixing up deadlines for implementation of the system in many food processing industries. Implementation of this system shall become mandatory for food processing industries with in a short span of time. The HACCP is a preventive system, which ensures very safe production of the food products. The entire system is based on technical and scientific system of food production and processing right from the field up to the point of its consumption by end users. It is also a systematic approach to identify the various hazards involved in the entire process of food production. System is backed by continuous assessment of the control point developed to overcome this hazard. The HACCP process consists of principles listed below, CONDUCT HAZARD ANALYSIS ( CCFH ).DETERMINE CRITICAL CONTROL POINTS ( CCP ). ESTABLISH CRITICAL LIMITS FOR EACH CCP. MONITOR CONTROL OF THE CCP.TAKE CORRECTIVE ACTION WHEN MONITORING INDICATES THAT A PARTICULAR CCP IS NOT UNDER CONTROL.DOCUMENTATION AND RECORD KEEPING.VERIFICATION TO ENSURE EFFECTIVENESS OF THE SYSTEM. PUNYAM ROLE & STEPS FOR HACCP IMPLEMENTATION ARRANGE HACCP AWARENESS PROGRAMMES.SELECTION OF HACCP TEAM AND CONDUCT MICRO LEVEL SURVEY FOR HAZARDS.IDENTIFY POTENTIAL HAZARDS AND CRITICAL CONTROL POINTS ( CCP ).ADVICE IN PREPARATION OF MONITORING SYSTEM, HACCP CONTROL CHARTS AND CONTROL LIMITS FOR EACH CCPS.

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ADVICE IN PREPARATION OF HACCP DOCUMENTS AND SUBMISSION OF MODEL DOCUMENT KIT.ADEQUACY AUDIT OF HACCP DOCUMENTS BY PUNYAM.

ARRANGE INTERNAL AUDITOR TRAINING.ARRANGE 1st AND 2nd INTERNAL HACCP AUDIT AND MONITOR CORRECTIVE ACTION.PRESENCE IN HACCP CERTIFICATION AUDIT.

PUNYAM IS PROVIDING HELP TO THE CLIENTS IN MANAGEMENT AREAS LISTED BELOW IN 4 MAIN WAYS. 1.ARRANGING IN-HOUSE TRAINING PROGRAMS2. ESTABLISHING SYSTEM ON PROJECT BASE.3. PROFIT SHARING BASED ON IMPROVEMENT ACHIEVED.

4. TOTAL MANAGEMENT ACTIVITY IS DONE BY US. SYSTEM CERTIFICATION Reliance Industries Limited.ISO : 9001(Quality System) ISO : 14001 ( Environment) HACCP ( Food Safety) CE mark WHO GMP OHSAS:18001 BS 7799 ( Information Security Mgt. System) SA 8000 ( Social Accountability) NABL Accreditation (ISO/IEC 17025)

STRATEGIC MANAGEMENT Competitive strategy Organisational leadership for 21st century Business Process Improvement(BPI) Six sigma

MARKETING

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International marketing Market research Managing retailing Institutional marketing Product policy & new product management Franchisees management Customer based business strategies SWOT analysis and marketing plans

PURCHASE Sharpening negotiation skills Vendor development and evaluation Supply chain management System audit for vendors

PRODUCTION AND QUALITY CONTROL Project management Process refinement Excellence in manufacturing Quality assurance establishment

FINANCE Creative solutions to finance problems Advanced data analysis for financial decisions Strategic finance management Finance and costing for non financial staff

HRD Human resource management Leadership & change management Key performance appraisal system (KRA Creative solutions to HR problems Goal setting & performance management Bench marking

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DEVANG K. JHAVERI, THE FOUNDER & CEO A Senior Technocrat with Managerial Background. Management Graduate with Brilliant Academic Career. Worked in Quality Area at Arvind Mills Ltd. Worked for ISO : 9000 & in Quality Area at ATIRA for four years

& helped 40 Companies. Published more than Five Articles for ISO : 9000 & Quality

System. EDUCATION B.E. (Textile Technology) Gold Medallist in Gujarat University (In 1986) & M.B.A. (Finance). SPECIALITIE Quality Control, ISO: 9000 Quality Management System, ISO:14000 EMS, HACCP & TQM Techniques, CE MARK, WHO GMP, ,OHSAS: 18001, BS 7799, SA 8000, ISO 17025, Management Areas. Third Party Audits, Vendor developments.

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IntroductionThis report is based on the data collected from the rural

market. The survey asks respondents about their views about ISO: 9001 & Calibration to identify potential of ISO & Calibration for any consultant & laboratory in the same business.

Problem StatementMarket Research to identify potential for ISO: 9001-2000 &

Calibration in Rural & Semi Urban area.

Research Objectives Carry out survey of both services as well as production sector

for identifying potential for ISO certification. Survey of industrial area for potential of calibration. Study prevailing misconceptions & needs of rural market. Promotional campaign for Punyam Management Services Pvt.

Ltd. & National Center for Quality Calibration. Find out product penetration percentage to supplement the

market potential (limit approached by market demand) as industry marketing expenditure approach infinity for a given marketing environment.

BackgroundTo carry out this project following theory and concepts are

used.

ISO: 9001- 2000

I S O 9 0 0 1 applies to all types of organizations. It doesn't matterwhat size they are or what they do. It can help both product andservice oriented organizations achieve standards of qualitythat are recognized and respected throughout the world.ISO 9001 2000 has replaced the old ISO 9001 1994 standard.In addition, the old ISO 9002 1994 and ISO 9003 1994 qualitystandards have been discontinued. They are now obsolete!

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If you're now ISO 9001 1994 certified, you're going to have to update your quality management system in order to meet the new ISO 9001 2000 requirements. And if you're now ISO 9002 or ISO 9003 certified, you're going to have to become ISO 9001 2000 certified!

ISO 9001: Systemic Requirements

1 Establish your quality systemDevelop your quality management system

Identify the processes that make up your quality system. Describe your quality management processes.

Implement your quality management system

Use quality system processes. Manage process performance.

Improve your quality management system

Monitor process performance. Improve process performance.

2 Document your quality system2.1 Develop quality system documents

Develop documents to implement your quality system. Develop documents that reflect what your organization does.

2.2 Prepare quality system manual

Document your procedures. Describe how your processes interact. Define the scope of your quality system.

2.3 Control quality system documents Approve documents before you distribute them. Provide the correct version of documents at points of use.

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Review and re-approve documents whenever you update them. Specify the current revision status of your documents. Monitor documents that come from external sources. Prevent the accidental use of obsolete documents. Preserve the usability of your quality documents.

2.4 Maintain quality system records

Use your records to prove that requirements have been met. Develop a procedure to control your records. Ensure that your records are useable.

ISO 9001: Management Requirements

1 Support quality Promote the importance of quality Promote the need to meet customer requirements. Promote the need to meet regulatory requirements. Promote the need to meet statutory requirements.

Develop a quality management system Support the development of a quality system. Formulate your organization's quality policy. Set your organization's quality objectives. Provide quality resources.

Implement your quality management system

Provide resources to implement your quality system.Encourage personnel to meet quality system requirements.

Improve your quality management system Perform quality management reviews. Provide resources to improve the quality system.

2 Satisfy your customers Identify customer requirements Expect your organization to identify customer requirements.

Meet your customers' requirements

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Expect your organization to meet customer requirements.

Enhance customer satisfaction

Expect your organization to enhance customer satisfaction.

3 Establish a quality policy Define your organization's quality olicy

Ensure that it serves your organization's purpose. Ensure that it emphasizes the need to meet requirements. Ensure that it facilitates the development of quality objectives. Ensure that it makes a commitment to continuous improvement.

Manage your organization's quality policy

Communicate your policy to your organization. Review your policy to ensure that it is still suitable.

4 Carry out quality planning4.1 Formulate your quality objectives

Ensure that objectives are set for functional areas. Ensure that objectives are set at organizational levels. Ensure that objectives facilitate product realization. Ensure that objectives support the quality policy. Ensure that objectives are measurable.

4.2 Plan your quality management system

Plan the development of your quality management system. Plan the implementation of your quality management system. Plan the improvement of your quality management system. Plan the modification of your quality management system.

5 Control your quality system5.1 Define responsibilities and authorities

Clarify responsibilities and authorities. Communicate responsibilities and authorities.

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5.2 Appoint management representative

Oversee your quality management system. Report on the status of your quality management system. Support the improvement of your quality management system.

5.3 Support internal communications

Ensure that internal communication processes are established. Ensure that communication occurs throughout the organization.

6 Perform management reviews6.1 Review quality management system

Evaluate the performance of your quality system. Evaluate whether your quality system should be improved.

6.2 Examine management review inputs

Examine audit results. Examine product conformity data. Examine opportunities to improve. Examine feedback from customers. Examine process performance information. Examine corrective and preventive actions. Examine changes that might affect your system. Examine previous quality management reviews.

6.3 Generate management review outputs

Generate actions to improve your quality system. Generate actions to improve your products. Generate actions to address resource needs.

ISO 9001: Resource Requirements

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1 Provide quality resources Identify quality resource requirements

Identify resources needed to support the quality system. Identify resources needed to improve customer satisfaction.

Provide quality system resources

Provide resources needed to support the quality system. Provide resources needed to improve customer satisfaction.

2 Provide quality personnel2.1 Use competent personnel

Ensure that your personnel have the right experience. Ensure that your personnel have the right education. Ensure that your personnel have the right training. Ensure that your personnel have the right skills.

2.2 Support competence

Define acceptable levels of competence. Identify training and awareness needs. Deliver training and awareness programs. Evaluate effectiveness of training and awareness. Maintain a record of competence.

3 Provide quality infrastructure Identify infrastructure needs

Identify building needs. Identify workspace needs. Identify hardware needs. Identify software needs. Identify utility needs. Identify equipment needs. Identify support service needs.

Provide needed infrastructure

Provide needed buildings. Provide needed workspaces. Provide needed hardware.

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Provide needed software. Provide needed utilities. Provide needed equipment. Provide needed support services.

Maintain your infrastructure

Maintain your buildings. Maintain your workspaces. Maintain your hardware. Maintain your software. Maintain your utilities. Maintain your equipment. Maintain your support services.

4 Provide quality environment Identify needed work environment

Identify factors needed to ensure products meet requirements.

Manage needed work environment

Manage factors needed to ensure products meet requirements.

Calibration The process of comparing an instrument's output signal with reality. Instruments that measure solar energy tend to "drift", that is, their output signals do not mean the same thing from one time period to another. Because of this, they are periodically (annually or semi-annually) re-calibrated against more reliable instruments. The picture below illustrates instruments being calibrated at SRRL. The radiometers on the calibration table are calibrated to a reference instrument traceable to the World Radiometric Reference (WRR).

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Methodology

Sampling DesignBy studying the available information about rural & semi

urban area which is our target population we have decided to go for complex probabilistic sampling-clustered sampling. Area sampling as it is the most economic way to reach respondents, easy & available heterogeneous within subgroup, homogeneous between subgroups.

By studying population we have selected sample size of 200 for ISO & 54 for calibration to have 90% level of confidence. Error 5% is allowed.

Population is divided into North, South, Saurastra & Middle Gujarat for clustering. North Gujarat is selected for the research as we found some of the area of north Gujarat as replica of whole rural area of Gujarat. As it contains Pharma, Stone, Textile, Electrical, Packaging etc. industry also service sector contains almost all kinds of services.

Research DesignMarket survey is decided to be carried out as it would be better

to have first hand and primary information and for promotional campaign. Two separate Questionnaires are prepared for ISO & Calibration (see appendix).

Design strategy:

Type: Exploratory research.

Purpose: Informational

Time Frame: Cross sectional.

Scope: Informational study.

Environment: Field research.

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Data CollectionData is collected by intercept personal interviewing of top

management person of the organizations. Try to satisfy their query, remove their misconceptions, note their views etc. activities are carried out during survey. One person is assigned survey task. Person is made aware of advantages of ISO and calibration, charging pattern of PUNYAM & NCQC to clients, how to contact top management and make them convinced for intercept interview & fill questionnaire etc. as pre-project exercises in initial days of project. Person has to report daily by phone, give potential client list by fax or e-mail and ask for necessary help to carry out project. Person does about 20 calls a day. So it took around 15 day for data collection. In field it was not easy to contact top management every time so as option middle management person like production manager or lower management persons like supervisors are needed to be interviewed. Many misconceptions are prevailing among rural people like they don’t find any difference between ISI and ISO, they don’t find any need to go for ISO or Calibration.

Data AnalysisData entry is being done thru computer program Microsoft

excel daily for analysis and interpretation.

LimitationsAs every coin has two sides project may have strengths as well

as some limitations. Research may have following limitations.

The questioning technique had its shortcoming, however. The major weakness is that the quality and quantity of information secured depends heavily on the ability and willingness of respondents to cooperate. Often, people refuse and interview of fail to reply to a mail survey. Certain people at certain time fail to see any value in participation; they may fear the interview experience for some personal reason; or they may view the topic as too sensitive and thus the interviews as potentially embarrassing or intrusive.

Even if respondent do participate, they may not have the knowledge sought or even have an opinion on the topic of concern. Under these circumstances, their proper response should be “don’t

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know” or “have no opinion”. Too often respondents feel obliged to express some opinion even if they do not have one. In those cases, it is difficult for researchers to know how true or reliable the answer is.

Respondents may also interpret a question or concept differently from what was intended by the researcher. This occurs when the respondent is answering a question different from the one being asked. A respondent may intentionally mislead the researcher by giving false information. It is difficult for a researcher to identify these occasions. Despite these weaknesses, communicating with research subject is a principle method of management research.

Non response error: When person don’t want to participate Response error: Interpretation differently so cant find answer

accurately Interview error: It occurs when interviewer fails to achieve

cooperation, interview is likely taken biased. Costs: Organization has to pay interviewers’ some kind of

wages like travel costs, and some allowances. As we have selected clustered sampling research may suffer

from limitations of clustered sampling like lower statistical efficiency (more error) due to subgroup being homogeneous rather than heterogeneous.

Using intercept personal interview method for contact sometimes being unable to contact top management person and interviewing best available respondent may not reflect views of owners which is very essential for reliable research results.

Questions may be altered or respondent coached by interviewers.

Same questionnaires are used for both areas where PUNYAM & NCQC are working and think to have some business so some of the questions are not lead to any finding or conclusion also some questions were part of brand promotion so they also have no relevance to research.

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Findings

ISO: 9001-2000

Findings:1. Rural client are still under awareness stage and have lots of

misconceptions about ISO: 9001.2. Rural customers have very less awareness about the

companies having ISO certification.

Question-1: Are you aware of ISO: 9001-2000 international quality management systems? a). Yes b). No

YES65%

NO35% YES

NO

Question-2: Have you heard any service sector company has got ISO: 9001-2000?

a). Yes Which? ________________ b). No.

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YES15%

NO85%

YES

NO

Question-3: Have you heard any of your competitors in your product line had got ISO: 9001 certificates?

a). Yes b). No

YES20%

NO80%

YES

NO

Findings:1. About 87.5% Respondents want to go for ISO for sales

growth, 80% for cost reduction.2. Few numbers of respondents want to go for ISO for govt.

tender or exports.

Question-4: What benefits you are looking for in implementation of ISO: 9001 in your Company?a). Cost reductionb). Sales Growthc). Market reputationd). Increase in Export/sales to NRI e). System establishment f). Improve Quality g). Win in competitive market

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h). Establish better control i). Government tender requirement

160 175 156

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125 10976

100

50100150200

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ION

SA

LES

GR

OW

TH

MA

RK

ET

RE

PU

TA

TIO

N

INC

RE

AS

EIN

EX

PO

RT

/SA

LES

TO

NR

I

SY

ST

EM

ES

TA

BLI

SH

ME

NT

IMP

RO

VE

QU

ALI

TY

WIN

INC

OM

PE

TIT

IVE

MA

RK

ET

ES

TA

BLI

SH

BE

TT

ER

CO

NT

RO

L

GO

VT

.T

EN

DE

RR

EQ

UIR

ME

NT

35

Page 36: rural and semi urban area

Findings:1. About 72.5% of respondent answer as reason why they not

go for ISO till now is our customers never ask it.2. Many respondents prioritize given reason in following

order expensive, not useful, difficult to get, increase staff strength and more record keeping.

Question-6: Why do you not opted for ISO:9001 certification in your company?a). More expensive b). Very difficult to get c). More record keeping d). Increase in staff strength e). Not useful in our industry f).Our customer never ask it

129110 100 103

127143

020406080

100120140160

MOREEXPENSIVE

VERYDIFFICULT TO

GET

MORERECORDKEEPING

INCREASE INSTAFF

STRENGTH

NOT USEFULIN OUR

INDUSTRY

OURCUSTOMERNEVER ASK

IT

Findings:1. 55% respondents wish to go for ISO within 2 to 3 year.2. 25% within 1 year, 16% never go for ISO.3. Some time is required to be more potential for ISO

consultancy firm.

Question-7: Are you having any further dream to get ISO: 9001 international certificates?a). With in 3 month b). With in 6 month c). With in 1 yeard). With in 2 to 3 year e). Never

36

Page 37: rural and semi urban area

3%1%

25%

55%

16%

WITH IN 3MONTH

WITH IN 6MONTH

WITH IN 1 YEAR

WITH IN 2 TO 3YEAR

NEVER

Findings:1. 95% customers are not aware of any consultant available to

get ISO certificate.

Question-8: Have you heard name of any firm for ISO: 9001 consulting or certification?a). PUNYAM Management (Market Leader) b). BVQI c). KPMG d). Not known

1 5 6

190

0

50

100

150

200

PUNYAM BVQI KPMG NOTKNOWN

Findings:1. Most of the companies are thinking to improve their sales

so they want help in marketing & sales.2. Very few numbers of respondents are thinking about HRD

& growth.

37

Page 38: rural and semi urban area

Question-10: Do you want to upgrade skill of your employees in any of the areas listed below?a). Marketing and Sales area b). HRD areac). Establish goal setting and control system d). Growth Management

110

10 20 10

020406080

100120

MARKETINGAND SALES

HRD AREA ESTABLISHGOAL SETTINGAND CONTROL

SYSTEM

GROWTH

Findings:1. Marketing expense of different companies is spreader and

different according to type and size of the organization.2. Less then 10% of firm spend over 10% of their sales for

marketing.

Question-11: How much you spent in advertising and marketing?a). Below 1 % b). Between 2 to 3 % c). Around 5 %d). Between 5 % to 10 % e). Above 10 %

38

Page 39: rural and semi urban area

25%

27%

23%

10%

15%

BELOW 1%

BETWEEN 2 TO3%

AROUND 5%

BETWEEN 5 TO10%

ABOVE 10%

Calibration

Findings:1. 83% of respondents are aware of what calibration is.2. Most of the respondents aware of calibration are in

electrical or chemical business.

Question-1: Are you aware of calibration of instruments? [ ] Yes [ ] No

YES83%

NO17%

YES

NO

Findings:1. Reason for not calibrating is in order of cost, no instrument,

not required by customer and no awareness. Apart from these reasons respondents give many other reasons responsible for not doing calibration.

Question-2: Why do you think calibration is not important for you?

[ ] High cost[ ] Not having awareness

39

Page 40: rural and semi urban area

[ ] Not required by customers[ ] Having no instruments[ ] Others

20

1113

17

23

05

10152025

HIG

H C

OS

T

NO

T H

AV

ING

AW

AR

EN

ES

S

NO

TR

EQ

UIR

ED

BY

CU

ST

OM

ER

HA

VIN

G N

OIN

ST

RU

ME

NT

S

OT

HE

RS

Findings:1. 48% of respondents are doing external calibration.2. 46% of respondents are doing internal calibration.3. 6% of respondents are not doing calibration or they don’t

have any instruments which need to be calibrated regularly.

Question-3: Which source are you using for calibration purpose?

[ ] Internal [ ] External. Which __________

INTERNAL46%EXTERNAT

48%

NOT DOING

6%INTERNAL

EXTERNAT

NOT DOING

Question-4: Why are you using external source of calibration?[ ] Accurate result

40

Page 41: rural and semi urban area

[ ] Quality of product[ ] Certificate purpose ( ISO or ISI)[ ] Reliable [ ] Required by customer[ ] Others

811

13

53

8

02468

101214

AC

CU

RA

TE

RE

SU

LT

S

QU

AL

ITY

OF

PR

OD

UC

T

CE

RT

IFIC

AT

EP

UR

PO

SE

(ISO

OR

ISI)

RE

LIA

BL

E

RE

QU

IRE

DB

YC

US

TO

ME

R

OT

HE

RS

Question-5: What benefits you want to achieve by calibration?[ ] Cost Reduction (Energy saving)[ ] Improve product quality[ ] Reduce rework[ ] Improve productivity[ ] Necessary for safety[ ] Time saving[ ] Market reputation during external audit[ ] Others

1713 11

1418

510

3

05

101520

CO

ST

RE

DU

CTI

ON

IMP

RO

VE

PR

OD

UC

TQ

UA

LITY

RE

DU

CE

RE

WO

RK

IMP

RO

VE

PR

OD

UC

TIV

ITY

NE

CE

SS

AR

YF

OR

SA

FE

TY

TIM

ES

AV

ING

MA

RK

ET

RE

PU

TATI

ON

OTH

ER

S

41

Page 42: rural and semi urban area

Question-6: Do you have any fixed time interval for calibration?[ ] Yes [ ] NoWhen (Month):

1 2 3 4 5 6 7 8 9 10 11 12

YES44%NO

56%

YES

NO

Question-7: Where will you prefer for calibration of your instrument?

[ ] NABL Accredited Laboratory[ ] Not NABL Accredited Laboratory[ ] No Calibration but give only certificate (Printing Certificate)[ ] Others

24%

50%

20%

6%

NABLACCREDITEDLABORATORY

NOT NABLACCREDITEDLABORATORY

NO CALIBRATIONBUT ONLYCERTIFICATE

OTHERS

Question-8: Which type of instruments you prefer for calibration?

[ ] Critical[ ] Frequently used

42

Page 43: rural and semi urban area

[ ] Accuracy oriented[ ] Production activity related[ ] Process activity related[ ] Laboratory

3023

18

3 4

32

05

101520253035

CR

ITIC

AL

FR

EQ

UE

NTL

Y U

SE

D

AC

CU

RA

CY

OR

IEN

TED

PR

OD

UC

TIO

N A

CTI

VIT

YR

ELA

TED

PR

OC

ES

SA

CTI

VIT

YR

ELA

TED

LAB

OR

ATO

RY

Question-9: Whom do you know as a leading calibration laboratory in Ahmedabad?[ ] NCQC[ ] ERTL[ ] National Center For Quality Calibration[ ] Others.

0 0

54

0

10

20

30

40

50

60

NCQC ERTL OTHERS

Question-10: Are you aware of National Accreditation Board for testing and calibration Laboratory?[ ] Yes [ ] No.Who are certified by NABL? ___________________

43

Page 44: rural and semi urban area

YES26%

NO74%

YES

NO

Question-11: Which are the problems you face during the calibration of the instrument?

[ ] Wrong report [ ] No sticker[ ] Delay[ ] Damage instrument[ ] Others

2 3 6 1

43

01020304050

WR

ON

GR

EP

OR

T

NO

STI

CK

ER

DE

LAY

DA

MA

GE

INS

TRU

ME

NT

OTH

ER

S

Question-12: Approximately how much money you spent for calibration?[ ] Below Rs. 1000 [ ] Rs. 1000 to Rs. 5000 [ ] Rs. 5000 to Rs. 10000

44

Page 45: rural and semi urban area

31%

20%11%2%

36%

BELOW RS. 1000

RS. 1000 TO RS.5000

RS. 5000 TO RS.10000

ABOVE RS.10000

NOT DOING

Question-15: Why are you not using calibration facility of NCQC?

[ ] High price [ ] Far distance[ ] Bad response[ ] Other

2%19%

0%

79%

HIGH PRICE

FAR DISTANCE

BAD RESPONSE

OTHERS

Question-16: How much importance are you giving to the calibration?

45

Page 46: rural and semi urban area

9%

40%

33%

11%7%

EXTREMELY

VERY

SOMEWHAT

NOT VERY

NOT AT ALL

46

Page 47: rural and semi urban area

Conclusion

Summary and ConclusionsThe main research findings for potential of ISO: 9001 &

Calibration shows that:1. There is many misconceptions are prevailing among

rural clients about ISO: 9001.2. Rural market is still in to the awareness stage for ISO.3. Major reason why companies don’t prefer to go for ISO

is their customers never demand for it. So awareness about the ISO in end customer in rural area is also very important.

4. People do not prefer to calibrate until it is not required or very essential. They do not go for calibration as precautionary measure.

RecommendationsRural market will have really great potential as some of the

companies have obtained ISO certificate and lots of companies planning for export and government contract will need to obtain ISO.

Certificates like ISI & ISO they have to calibrate their instruments.

Rural industrialists need awareness campaign like what benefits can be obtained thru ISO & Calibration.

At the same time company can go for brand promotion and sales promotion so that it can get maximum benefit form this potential market.

Rural market needs some time to be more potential. Till then no need to go to rural market is found.

47

Page 48: rural and semi urban area

Appendixes

Appendix AMARKET RESEARCH FOR

ISO: 9001-IMPLEMENTATION(STUDENT FROM NRIBM (GLS-MBA) COLLAGE)

1. Name of the firm: _________________________________________

2. Address of the firm: _______________________________________

3. Contact person and post: ___________________________________

4. Date of visit: _____________________________________________

5. Product details: ___________________________________________

6. Contact details( phone/e-mail/mobile): ___________________________________________

QUESTIONNAIRE

1. Are you aware of ISO: 9001-2000 international quality management systems? a). Yes b). No

2. Have you heard any service sector company has got ISO: 9001-2000?a). Yes Which? ________________ b). No.

3. Have you heard any of your competitors in your product line had got ISO: 9001 certificates? a). Yes b). No

4. What benefits you are looking for in implementation of ISO: 9001 in your Company?

a). Cost reduction b). Sales Growth c). Market reputationd). Increase in Export/sales to NRI e). System establishment f). Improve Quality g). Win in competitive market h). Establish better control i). Government tender requirement

5. Give priorities from above question from 1 to 9 according to importance.

1. 2. 3. 4. 5. 6. 7. 8. 9.

6. Why do you not opted for ISO:9001 certification in your company?a). More expensive b). Very difficult to get c). More record keeping d). Increase in staff strength e). Not useful in our industry f).Our customer never ask it

7. Are you having any further dream to get ISO: 9001 international certificates?a). With in 3 month b). With in 6 month c). With in 1 yeard). With in 2 to 3 year e). Never

8. Have you heard name of any firm for ISO: 9001 consulting or certification?a). PUNYAM Management (Market Leader) b). BVQI c). KPMG d). Not known

9. Have you heard any things related to PUNYAM Management?a). Having more than 250 clientsb). Market leader in ISO: 9001 and management consultancyc). Having rich experience of 12 to 15 yearsd). Big organization having 20 Engineers and MBAse). Helped more than 20 service sector companies including iNDEXTb

10. Do you want to upgrade skill of your employees in any of the areas listed below?a). Marketing and Sales area b). HRD areac). Establish goal setting and control system d). Growth Management

11. How much you spent in advertising and marketing?a). Below 1 % b). Between 2 to 3 % c). Around 5 %

48

Page 49: rural and semi urban area

d). Between 5 % to 10 % e). Above 10 %

49

Page 50: rural and semi urban area

Appendix BMARKET RESEARCH FOR CALIBRATION

(STUDENT FROM NRIBM (GLS-MBA) COLLAGE) Date: ____________

1) Name of the firm: ___________________________________Product Details:___________

2) Address of the firm: _______________________________________

3) Contact person and post: ___________________________________

4) Contact details ( phone/email/mobile):_____________________________

QUESTIONNAIRE

1) Are you aware of calibration of instruments? [ ] Yes [ ] No

2) Why do you think calibration is not important for you?[ ] High cost [ ] Not having awareness [ ] Not required by customers[ ] Having no instruments [ ] Others

3) Which source are you using for calibration purpose? [ ] Internal[ ] External. Which ___

4) Why are you using external source of calibration?[ ] Accurate result [ ] Quality of product [ ] Certificate purpose ( ISO or ISI)[ ] Reliable [ ] Required by customer [ ] Others

5) What benefits you want to achieve by calibration?[ ] Cost Reduction (Energy saving) [ ] Improve product quality[ ] Reduce rework[ ] Improve productivity [ ] Necessary for safety [ ] Time saving[ ] Market reputation during external audit [ ] Others

6) Do you have any fixed time interval for calibration? [ ] Yes [ ] No

When (Month): 1 2 3 4 5 6 7 8 9 10 11 12

7) Where will you prefer for calibration of your instrument?[ ] NABL Accredited Laboratory [ ] Not NABL Accredited Laboratory[ ] No Calibration but give only certificate (Printing Certificate) [ ] Others

8) Which type of instruments you prefer for calibration?[ ] Critical [ ] Frequently used [ ] Accuracy oriented[ ] Production activity related [ ] Process activity related [ ] Laboratory

9) Whom do you know as a leading calibration laboratory in Ahmedabad?

[ ] NCQC [ ] ERTL [ ] National Center For Quality Calibration [ ] Others.

10) Are you aware of National Accreditation Board for testing and calibration Laboratory?[ ] Yes [ ] No. Who are certified by NABL? ___________________

11) Which are the problems you face during the calibration of the instrument?[ ] Wrong report [ ] No sticker [ ] Delay [ ] Damage instrument [ ] Others

12) Approximately how much money you spent for calibration?[ ] Below Rs. 1000 [ ] Rs. 1000 to Rs. 5000 [ ] Rs. 5000 to Rs. 10000[ ] above 10000 [ ] Not doing

13) Have your heard any thing about NCQC (National Centre For Quality Calibration) ?[ ] Market Leader in calibration [ ] NABL accredited laboratory

50

Page 51: rural and semi urban area

[ ] Provide on site calibration and arranging calibration camp [ ] Dust free, vibration proof, properly illuminated, temperature and humidity controlled environment[ ] NCQC calibration reports are acceptable to all ISO 9000 certifying bodies,

Multinational companies and Govt. Tender requirements [ ] Quick delivery, reliability and cheaper rate

[ ] Free calibration training [ ] Having rich experience of 7 years

14) Do you want any help from NCQC?[ ] Free training on calibration with trained calibration engineers certificate[ ] Personal meeting for discussion [ ] Make annual contract [ ] Other HelpWhy are you not using calibration facility of NCQC?[ ] High price [ ] Far distance [ ] Bad response [ ] Other

15) How much importance are you giving to the calibration?

51

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Bibliography1. Bovee, Thill, Schatzman. “Business Communication Today”. Pearson

publication, 7th edition 2004, New Delhi.

2. Chase, Aquilano, Jacobs. “Production Operation Management”. TATA

McGraw-HILL, 8th edition, New Delhi.

3. Cooper D, Schindler P. : Business Research Methods, TATA McGraw

Hill, 6th edition, New Delhi.

4. Kotler P., “Marketing management”, Pearson publication, 11th ed, Delhi.

5. Rao S., “ Handbook for writers and editors”, Ahmedabad Management

Associated, 8th ed, Ahmadabad.

6. Web Site: www.punyam.com

52