Industrial management and safety short note

1. VIVEKANAND K
Reference Points in IMS
Module-2
QUALITY PLANNING AND DEVELOPMENT MATERIAL
&
SALES MANAGEMENT
No Topic Key Points
1 Quality Quality is fitness for use.
(Juran 1974)
2 Dimensions
(characteristics) of quality
1. Durability
2. Suitability
3. Dependability
4. Reliability
5. Affordability
6. Value of money.
3 Objectives of quality
planning.
A quality plan is a document, or several documents, that
together specify quality standards, practices, resources,
specifications, and the sequence of activities relevant to a
particular product, service, project, or contract.
Objectives
1. Create excellent operating culture.
2. Produce quality product and service
3. Prepare guidelines to keep quality
4. Quality assurance
5. Build up committed workforce
6. Analysis of quality cost
7. Define quality standards
4 Three prong approach to
quality planning.
 Product planning: Survey about the product,
customer requirement etc and understand demand
and manufacture accordingly.
 Managerial and operational planning: Prepare
organization structure, procedure, process,
resources etc.
 Quality plan preparation: Prepare document for
quality practices resources, Sequence of activity,
contact etc.
5 Developments in quality
planning.
Quality planning involves many levels
1. Level 1: Quality manual
2. Level 2: Quality procedure
3. Level 3: Quality instructions
4. Level 4: Quality records

2. VIVEKANAND K
6 ISO 9000 series. ISO 9000 is defined as a set of international standards on
quality management and quality assurance developed to
help companies effectively document the quality system
elements needed to maintain an efficient quality system.
They are not specific to any one industry and can be
applied to organizations of any size.
ISO 8402: Provides basic concept about quality policy,
Traceability etc.
ISO 9001: Ensures quality from designs, development,
production installation and service.
ISO 9002: It uses Installation and implementation.
ISO 9003: It uses foe final test and inspection
ISO 9004: Guidelines for technical administration,
humanity factors which is affecting quality of product etc.
Which uses only for internal use.
7 ISO 9000 installation 1. Preparatory step :
 Conduct awareness program to top level
management.
 Set up implementation committee
 Start ISO awareness program
 Find current status and prepare action plan
 Develop organizational structure
 Develop Quality system
2. Implementation step
 Implement the documented quality system
 Establish internal quality audit
 Monitor and stabilize quality system
 Conduct preregistration internal audit
3. Registering and certificate step
 Apply for registration
 Audit by certification body
 Compliance audit
 Certification

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8 Objectives of quality audit 1. Determining the conformity or non-conformity of the
quality system elements with specified requirements.
2. Ensuring whether the products are fit for use, safe for
the consumers and regulations are being followed.
3. There is conformance to specifications and that written
procedures are suitable and are being followed.
4. Finding out whether the quality policies of organisations
meet quality standards adequately.
5. The data system is able to provide adequate information
on quality to all concerned.
6. Corrective action is taken with respect to deficiencies.
7. Opportunities for improvement are identified.
9 Total Quality Management
(TQM)
TQM is defined as management philosophy to a journey to
organizational excellence through customer orientation.
1. Customer-focused: The customer ultimately
determines the level of quality. Integrating
quality into the design process, or upgrading
computers or software etc. improve the quality.
2. Total employee involvement: All employees
participate in working toward common goals.
Total employee commitment can only be
obtained after fear has been driven from the
workplace.
3. Quality system: A critical part of the
management of quality is the strategic and
systematic approach to achieving an
organization’s vision, mission, and goals. This
process, called strategic planning or strategic
management, includes the formulation of a
strategic plan that integrates quality as a core
component.
4. Continual improvement: A large aspect of
TQM is continual process improvement.
Continual improvement drives an organization to
be both analytical and creative way to improve.
10 Link between ISO and TQM.
TQM = ISO 9000 + Total Involvement +Focus on
customer+ Continuous improvement+ Top management
commitment and involvement.

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11 Ten “manthras’’ of TQM. 1. Quality is through continuous involvement and
effort.
2. Quality involves hard work and devotion
3. Quality is everybody’s business
4. Quality begins cleanliness
5. Take quality and quality will take care everything
6. Make it right for first time
7. Quality is achieved through team work.
8. Document is dependable.
9. Quality is end and begins with education
10. Quality used to evaluate product and services.
12 Mission, vision and quality
policy.
Vision: Vision can be described as desired future position
of company.
Eg: With in next 5 year company will take one fourth of
the market.
Mission : It is the statement it gives companies business ,its
objective and approach to reach those objectives.
Eg: By expanding production of dress we will achieve the
one fourth of the market.
Quality Policy: Top management expression of intension,
direction and aim regarding quality of product and process.
13 Material management
Objectives of purchase
department.
Material management is a service function. The supply of
proper quality of materials is essential for manufacturing
standard products. The avoidance of material wastage helps
in controlling cost of production. Material management is
essential for every type of concern.
1. Provide the needed materials, supplies, services, and
equipment requested on a timely basis and with a
minimum investment.
2. Procurement of requested materials and services from
vendors.
3. Better products, sources of supply, and improved ways
of meeting the needs of users.
4. Assist departments when emergency purchases are
necessary.
5. Educate and departments, through individual and/or
group training sessions, in the established procurement
practices and procedures.

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6. Protect against unethical or unfair trade practices and
unrealistic or unauthorized price increases.
7. Maintain liaison and good relations with the various
vendor’s related people.
8. Strive to improve procurement systems, practices, and
procedures to effect maximum efficiency and economy.
9. Conduct price evaluations and analysis from prospective
vendors to determine whether submitted prices are fair
and reasonable.
10. Maintain a vendor file and commodity/bidders list
15 State the buying techniques EOQ model
ABC model
16 Describe purchase procedure. Purchase procedure
Purchase request is given to purchase department. Purchase
section will invite tender and select best supplier. Purchase order
will be issued to the suitable supplier. Supplier will supply the
material, after inspection of material will be accepted and close
the file. Material will be given to the place where purchase
request received.
17 Inventory
Classify the inventory
Stock of physical asset which has economic value
Eg: Material, money, labor.
In manufacturing aspect the inventory is divided as
follows
1. Production inventory
2. Work in progress
3. Finished goods inventory
4. MRO inventory
5. Miscellaneous inventory
In controlling aspect the inventory is divided as follows
1. Class A
2. Class B
3. Class C

6. VIVEKANAND K
18 EOQ and ABC model EOQ (Economic order quantity) MODEL
The EOQ help to hold appropriate level of inventory. It helps to
give purchase order at right time. The important terms in EOQ is
explained below,
Max stock: Max limit of stock at a time.
Minimum stock: It is the minimum level of stock should kept
always in store.
EOQ or standard order: It’s the difference between max and
min order quantity.
Reorder point: This is the point where we have to initiate the
purchase order.
Lead time: It is the time difference between placing order time
and material receiving time.
ABC (Always better control) MODEL
In this model material is classified into three class A
class B and class C.

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Class A: It consists 10 % of the total no of items and 70 %
of the total money value for all the items.
High value item, high control and security is required.
Class B: It consists 20 % of the total no of items and 20 %
of the total money value for all the items.
It’s between Class A and Class C moderately control
materials.
Class C: It consists 70 % of the total no of items and 10 %
of the total money value for all the items.
It consist low value material.
19 Objectives of stores
management
1. After the completion of purchase procedure, the
next important aspect Of materials management is
storekeeping.
2. To ensure uninterrupted supply of materials and
stores without delay to various production and
service departments of the organisation.
3. To prevent overstocking and under stocking of
materials.
4. To protect materials from pilferage, theft fire and
other risks.
5. To minimise the storage costs.
6. To ensure proper and continuous control over
materials.
7. To ensure most effective utilisation of available
storage space and workers engaged in the process
of storekeeping.
20 Functions of store keeping 1. Issuing purchase requisitions to Purchase
Department as and when necessity for materials in
stores arises.
2. Receiving purchased materials from the purchase
department and to confirm their quality and
quantity with the purchase order.
3. Storing and preserving materials at proper and
convenient places so that items could be easily
located.
4. Storing the materials in such a manner so as to
minimise the occurrence of risks and to prevent
losses due to defective storage handling.
5. Issuing materials to various departments against
material requisition slips duly authorized by the
respective departmental heads.
6. Undertaking a proper system of inventory control,

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taking up physical inventory of all stores at
periodical intervals and also to maintain proper
records of inventory.
7. Providing full information about the availability of
materials and goods etc., whenever so necessary by
maintaining proper stores records with the help of
bin cards and stores ledger etc.
21 Describe the store keeping
records
Maintaining records is very important which help to
manage with minimum cost. The following are some of the
books or documents should keep in store.
1. Receipt of materials (Receipt book, bin card, stock
ledger etc)
2. Inspection of material( PO, Daily receipt voucher
stock ledger etc)
3. Issue of materials (Bincard, gate pass, material
requisition slip, store advice)
4. Verification of stores (Stock taking
sheet,Bincard,Stock leager etc)
5. Material control( Stock day sheet, stock ledger
etc)
22 Concept of store layout. Store layout is the design of a store’s floor space and the
placement of items within that store. It is the internal
arrangement of store is known as store layout.
Which can be arranged based on weight space required for
item, units should withdraw at a time, storage space, max
storage can be done at time, type of material etc.
23 Centralised and de-centralised
store
Centralized stores
A centralized store is that store which receives materials
for and issues them to all departments, divisions and
production floors of the company. The materials required
for all the departments and branches are stored and issued
by only one store.
The followings are the main advantages of centralized
stores.
1. A better supervision of store is possible because the
store is located under a single supervision.
2. A better layout of store and its control are possible.
3. Less space is occupied.
4. Investment in stock is minimized.
5. It is economical for storing materials.
6. Safety of materials is possible according to the
nature of materials.
7. Trained and specialized persons can be appointed.
8. Wastage of materials can be minimized.

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The followings are the main disadvantages of centralized
stores.
1. Delay in sending materials to the departments and
branches.
2. Increase in material handling cost.
3. Greater risk of loss by fire.
4. Not suitable for a large company.
Decentralized Stores
A decentralized store is that type of store which receives
materials for and issues them to only one department and
not to the whole company. The decentralized store may be
in many numbers in the company, as each department has
its own such store.
Advantages Of Decentralized Stores
1. Controlling and storing function can be
accomplished easily.
2. Delay in material handling will be eliminated.
Minimizes the chances of loss by fire.
3. No need of internal transportation costs.
Specific needs of individual departments can be
easily fulfilled.
4. Saving in material handling cost.
Disadvantages Of Decentralized Store
1. Higher cost of supervision.
2. More space is required for individual departments.
3. Higher amount of investment is required.
More time for stock taking and taking.
4. Higher cost of staff and stationary.
Improved technique is less possible for controlling
of materials.

10. VIVEKANAND K
24 The importance of sales
department
1. Profit is depend on sales
2. Sales department keeping the relationship between
customer and company.
3. Sales department will help to decide production
volume, quality etc.
4. Sales department help to form sales budget.
5. Keep sales records which help decide policies.
6. To prepare sale plan the sale department will
provide details.
25 The functions of sales
department
1. Analyze market
2. Study consumer habits and taste.
3. Study about competitor.
4. Sales research and planning.
5. Demand creation.
6. Advertising
7. Decide distribution network and policy.
8. Sales costs and budget.
9. Price fixations.
10. Development of products.
26 The process of sales
forecasting.
It is a process of estimation of future activities. The
demand of product depends upon the factors like
1. Competitors strategy
2. Future changes in the production process
3. Customer taste
4. Arrival new products from other places
5. Government policies
6. Economic situation