BC Quality Certification Case

8/8/2019 BC Quality Certification Case

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Group Membersy Arjun Malhotra 10HR-009

y Gargi Jalan 10DM-188y Aditi Pandey 10DM-006

y Ankur Shah 10DM-018y

Dhara Jain 10DM-042y Ajay Kumar Jha 10FN-006


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4/19

Stat emen t of th e Problemy T he fallacies which have been caused by wrong

procedural implementation of quality certificationhave to be done away with.


5/19

Ca se Overviewy A truck body builder in order to grab a huge contract

from the State T ransport Board of a neighbouring

country, needed ISO 9001/9002 certification.y Many consultants were approached to get the company

certified in shortest possible time.y In spite of the lack of resources for quality

management, the company gets the certification.


6/19

Ca se Overviewy T he company became the second highest bidder.y T he first order was built with high priority and

dispatched on timey Within one month problems are observed in the buses

dispatched in first order.y T his leads to rejection of the order.y T he required quality parameters were not maintained,

so as to meet the deadlines.


7/19

Scope of th e a na lysisy We need to analyse the reasons for the rejection of first

shipment.y We also need to ensure that appropriate correctiveactions are taken with regards to the current situationy We need to ensure that the fallacies of this project do

not affect other projects in terms of timelines and

costs.y T he brand image of the company needs to be taken

care of.


8/19

Scope of th e a na lysisy We need to ensure reduction in inventory costs and

losses for the company.y Deadlines and quality standards of the company needto be reviewed.y T he quality management has to match standards

defined by ISO I practical terms as well.


9/19

Maj or f a ul t sy Some had paint peeling off y Some had been badly weldedy Some had problem with windows opening and

shuttingy Some doors had developed snags


10/19

A ltern at ive solu t ions a nd

th eir ev a lu at ionSolution 1:y T he removal of defects could be outsourced to some

other company having the required ISO certificationand where buses have been supplied before.

y State T ransport corporation could be asked to givesome time to rework on the order.


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th eir ev a lu at ionSolution 1:y Advantage: T his could lead to reduction in charges of

shipping back the buses and also in reduction of theloss.

y Disadvantage: T he goodwill of the company couldreduce and the outsourcing may lead to heavy expenses.


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th eir ev a lu at ionSolution 2y T he company could offer reimbursement to State

Board on the contract for the first order.y T hey can offer discounts on the second batch in order

to keep the contract.y T hey have to ensure that the second order has the

appropriate quality and also meets the deadline.


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th eir ev a lu at ionSolution 2 :y Advantage: T he company doesn t loose upon a potential

customer and avoids incurring losses. It could be a noprofit no loss scenario for the first order and less profits forthe second. Future interests are therefore taken care of.

y Disadvantage: T he company shall have to use all resources

and workforce for one project and other potentialcustomers could be left ignored and unattended. Any current loans if incurred which were to be paid back usingprofits earned shall become bad debts.


14/19

B es t Solu t iony T he ISO standards need to be met practically.y As we know that the Quality Management Department has

defaulted to a great extent, care is needed to make sure thatthe future customers are not lost.

y T he staff should be involved in working with people of Quality Assurance Department.

y T he order which has been rejected should be recalled,

segmented into small divisions, so that good parts busesdon t get wasted, and repairs done on defects.y A maintenance centre should be established in the where

buses supplied can be serviced for the customers.


15/19

B es t Solu t iony Some works could be outsourced to some other

company having the required expertise.y

Hire the people with required expertise.y T he second order should be supplied to the State

T ransport Corporation with the required quality.


16/19

B es t Solu t ion Advantages

y T here will be a better co-ordination between the teams

from various department.y T he workshop in the factory will reduce future

maintenance costs.y Maintenance centre will inspire confidence in the

mind of customers.y Quality of the product will be improved and this will

lead to a better brand name.


17/19

B es t Solu t ionDisadvantagesy T his will lead to a lesser profit margin.y T he man power will need to be increased to meet the

needs of Quality Control thereby, increasing the costs.y T he second order if spoilt may destroy the goodwill of

the company so there is a lot of risk involved.y T he company will have to bear the additional costs and

losses incurred which might affect some long termplans.


18/19

Con clusiony It s easy to get the certification, but we have to work hard

for the quality.y Only ISO certification shouldn t be our goal.y To remain in the market we need to work on quality.y To ensure the quality the floor staffs should work in co-

ordination with the Quality Group.y We can use outsourcing for initial period. Major companies

like Microsoft, T A T A Steel, GE are doing this. So why can t we?y Hire people with the required expertise.y T ake a now or never approach.


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Thank You

Documents

BC Quality Certification Case