Pyramid Of Success

RESULTS DAILY ACTIVITIES WEEKLY ACTIVITIES MONTHLY ACTIVITIES SHORT RANGE GOALS LONG RANGE GOALS VISION PURPOSE -- MISSION PRINCIPLES -- VALUES Success is Progressive Realization of worthwhile Predetermined Personal Goals

Values & Goals

Goals for the future, Values are now. Goals are set, values are lived. Goals change, values are rocks you can count on. Goals get people going, values sustain the effort. Values guide all plans, decisions & actions. Values become real only when you demonstrate them in the way you act and in the way you insist others to behave.

Core Values Essential Tenets

Sony Elevation of the Japanese culture & national status Being a pioneer- not following others, doing the impossible Encouraging individual ability & creativity

Nordstrom
Service to the customer above all else Hard work & individual productivity Never being satisfied Excellence in reputation, being part of something special

QUALITY SYSTEM

People

Methods/ Processes

Management Environment Total Quality of Product Or Service

Equipments Instruments

Raw Material

CAPITAL ESSENTIAL

Quality
Quality is totality of characteristics & features of a product, service, system or part that bears upon its ability to satisfy stated &implied needs of a customer. Quality is no accident. Must be planned& there are no shortcuts. Quality is conformance to requirement & is achieved through prevention not appraisal.

Quality Management Principles

Customer focus. Leadership. Involvement of people. Process approach System approach to management Continual improvement. Factual approach to decision making. Mutually beneficial supplier relationship.

LEADERSHIP
Creating A Team Spirit Setting An Example ( ROLE MODEL ) Supporting Excellence Providing Direction & Guidance Providing Tools & Resources Empowering Nurturing & Supporting Growth Allowing Freedom In Implementation

Purchasing Cycle 01
Establishing & communicating the need for procurement Indent Raised by User / Stores with Specifications, Quantity, Delivery required. Scrutiny of purchase indent Scrutinize Accuracy, Authority, Quality Description, Source availability Last Supply position (pending or complete). Type of product requirement Capital / Regular /Maintenance Spares. Import /Local Market study & selection of sources of supply Refer Updated Suppliers Data Folder &Their ratings. New Product / New Supplier Availability. Purchase Enquiry Must cover Specifications ,Packing , Forwarding , Dispatch mode , Goods Inspection / Acceptance criteria , Right of Acceptance / Rejection of offer / tender.

Important Time Frame For Tender

Date of issue of Tender Sale of tender document Submission of sealed Bids Opening of technical bids Technical presentation by the bidders Intimation to short listed bidders Commercial bid opening Negotiation (if any) Placement of order Delivery of goods Installation, commissioning, & operation Completion of Installation, commissioning, & operation latest by

Purchasing Cycle 02
Analysis of the proposal Preparation of Comparative Statement First Technical Specification comparison. Any deviations get it approved by same committee who originally designed/provided it. Next Commercial-Consider Total Cost Basic Unit Price along with Spares, Packing & forwarding, cost of operation, maintenance, license fees, exchange rate variation, inspection. Insurance, Duties, Taxes, Clearance charges, Landed cost , Delivery.

Purchasing Cycle 03
Final negotiation/ selection. Order preparation -A Legal Document To be prepared after having the necessary internal sanctions. Release of L.O.I./F.O.I. or P.O .must be within Validity of offer Follow up. Receiving & Inspection Physical Verification, Samples, Test Reports. Storage & Record keeping- If accepted update the records. If rejected return back. Invoicing & payment Evaluation & rating of suppliers Disposal of scrap

Purchase Order Contents 02

Delivery date & schedule, Shipping instructions. Terms & conditions Definitions, Responsibilities, Warranty/Guarantee, Cancellation clause, Documentations required, Taxation, Jurisdiction, Force Majeure, Penalty clause, Insurance Other special terms & conditions like mentioning the end use , furnishing the drawings, tolerances, finish, referring to national or international standards/specifications, and the tests conducted for acceptance, samples

Supplier
Suppliers Registration Proof of ownership, partnership etc, along with address, telephone nos., fax no. website. Organization Structure Financial Stability Latest Balance Sheet, Previous years income tax clearance certificate, Sales tax registration certificate, Last two years performance record for contractual compliance & delivery times. Technical Experience, Production Capability & Capacity. Quality Management System. On acceptance Maintain approved suppliers Register. Supplier performance should be monitored to ensure that it meets contract conditions. Prior to contract closure evaluate his performance and use the feedback obtained to Up Date suppliers Register Regularly

Just In Time 01
J.I.T. Purchasing Fundamental Principals. Long term and mutually beneficial relationship. Mutual dependence to achieve quality and fair price. Supplier is an extension of the business. Elimination of Rejection. Joint identification of problems and non value added activities assisting suppliers in problem solving Early supplier involvement. Process control to improve and maintain quality. Use of standardized containers to protect product and simplifying counting of goods. Purchasing from qualified sources of suppliers Single source and long term contracts

Just In Time 02
Purchasing in small lots just enough Frequent deliveries Suppliers self certification of quality Minimum paperwork Packing in small standard containers for holding exact quantities Evaluating the suppliers on the basis of product quality, delivery, and price . Emphasis on on-time delivery Flexibility of product specifications to encourage innovation Quality at source Eliminate expediting from the system 5 S for workplace improvement Waste (MUDA) elimination

Basic Principles Involved In Quality At Source

Selecting the supplier based on their Quality Assurance capability. Educating & Training suppliers on various aspects of the quality requirements, measurements & method of inspection. Working closely with the supplier from the stage of assessing the technical capability, vendor development, sample validation, pilot/bulk supply stage up to establishing regular supplies of non standard materials. Lending them special tools & gauges. Introduce preshipment quality audit. Providing feed back on nature of defects & helping them to reduce/eliminate rejection. Encouraging them to improve their productivity & quality by adopting JIT concept. Adapting TQM as the philosophy of control & replacing Error Detection Base system by Error Prevention Base system.