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TABEL OF CONTENTS

PACKAGES
 INTRODUTION
 HISTORY
 Function of Quality Department

International Organization for Standardization (ISO)

 ISO 9000
 ISO 14000

Implementation in Packages

 Problems in implementation of ISO Standards
 Cost
 Benefits of ISO implementation

Auditing

 Internal Audits
 External Audit

References

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PACKAGES LIMITED
Introduction
Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and
Rausing of Sweden, Packages Limited provides premium packaging solutions for exceptional
value to individuals and businesses. We are the only packaging facility in Pakistan offering a
complete range of packaging solutions including offset printed cartons, shipping containers
and flexible packaging materials to individuals and businesses world-wide. Our clientele
includes illustrious names such as Unilever and Pakistan Tobacco Company, who have been
our customers for over 50 years. We employ over 3000 people and had sales of over US $
100 million in 2004.

Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a long-time
credit rating of AA. Our joint ventures and business alliances with some of the world's
biggest names reflect our forward-looking strategy of continuously improving customer value
through improvements in productivity.

Packages has always been at the forefront of new developments in packaging research and
has pioneered several innovations, including the use of wheat straw as a raw material for
paper and board manufacture. Our on-site paper and board mill, established in 1968, has
constantly increased its production capacity. A new plant with even greater capabilities is
planned for the near future.

Our people are our greatest asset. We seek and retain people who feel there is no compromising on
excellence, and a corporate culture in which our family can grow and thrive. Heading our multi-
talented team is our leadership of experienced senior management. Together, we know how to combine
our skills and knowledge to deliver state-of-the-art solutions to our customers.

BOARD OF DIRECTORS
Towfiq Habib Chinoy Syed Hyder Ali
(Chairman) (Managing Director)
Syed Aslam Mehdi Shamim Ahmad Khan
Khalid Yacob Mujeeb Rashid
Matti Ilmari Naakka Syed Shahid Ali
Shahid Aziz Siddiqui Tariq Iqbal Khan

ADVISOR COMPANY SECRETARY
Syed Babar Ali Adi J. Cawasji

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EXECUTIVE COMMITTEE AUDIT COMMITTEE
Syed Hyder Ali - Chairman Shamim Ahmad Khan - Chairman
Syed Aslam Mehdi - Member (Non-Executive Director)
Khalid Yacob - Member Tariq Iqbal Khan - Member
Mujeeb Rashid - Member (Non-Executive Director)
Syed Shahid Ali - Member
(Non-Executive Director)
Syed Aslam Mehdi - Member
(Director & General Manager)
Adi J. Cawasji – Secretary

BUSINESS STRATEGY COMMITTEE SYSTEM & TECH. COMMITTEE
Syed Hyder Ali - Chairman Mujeeb Rashid - Chairman
Mujeeb Rashid - Member Khalid Yacob - Member
Syed Aslam Mehdi - Member Suleman Javed - Member
Khalid Yacob - Member

History
Over the years,

Packages has continued to enhance its facilities to meet the growing demand of packaging
products.

The Bulleh Shah Project:

Packages is planning to relocate its paper manufacturing facilities from the existing location,
which has limited capacity for expansion, to a new site 54 km from the present one. This will
enable us to radically increase our paper and paperboard production from 100,000 to 300,000
tones per year. The packaging operation shall continue concurrently at the Lahore site.
In 2007-09, the company also invested in a new 35000 tons tissue paper machine which
commenced commercial production in 2008

In 2005, the company embarked upon its paper and board expansion plant at a new site
almost tripling its capacity from the current 100,000 tons per annum to 300,000 tons per
annum.

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In 2003,Packages entered into an agreement with Vimpex of Austria to provide management
and technical assistance to help in the operation, production optimization and capacity
expansion of a paperboard mill in Syria. A team from Packages is currently providing these
services and is close to optimizing mill production.
In 1999-2000, Packages Limited successfully completed the expansion of the flexible
packaging line by installing a new rotogravure printing machine and expanded the carton line
by adding a new Lemanic rotogravure inline printing and cutting creasing machine. A new 8-
color Flexographic printing machine was also installed in the Flexible Business Unit in 2001.
Packages Limited has also started producing corrugated boxes from its plant in Karachi from
2002.

In 1996, a joint venture agreement was signed with Printcare (Ceylon) Limited for the
production of flexible packaging materials in Sri Lanka. Packages Lanka (Private) Limited
commenced production in 1998. Packages Limited now owns 79% of this company.

In 1994, Coates Lorilleux Pakistan Limited, in which Packages Limited has 55% ownership,
commenced production and sale of printing inks.

In 1993, a joint venture agreement was signed with Mitsubishi Corporation of Japan for the
manufacture of Polypropylene films at the Industrial Estate in Hattar, NWFP. This project,
called Tri-Pack Films Limited, commenced production in 1995 with equity participation by
Packages Limited, Mitsubishi Corporation, Altawfeek Company for Investment Funds, Saudi
Arabia and the public. Packages Limited owns 33% of Tri-Pack Films Limited's equity.
Since 1982, Packages Limited has had a joint venture with Tetra Pak International in Tetra
Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market
Tetra Pak packaging equipment.

Packages commissioned its own paper mill with a production capacity of 24,000 tonnes in
1968. The mill produces paper and paperboard based on waste paper and agricultural by-
products like wheat straw and river grass. With growing demand the capacity was increased
periodically and in 2003 was nearly 100,000 tons per year.

Function of Quality Department
Quality Policy

We at Packages Limited are committed to producing quality products which conform to our
customer requirements and strengthen our position as a quality-managed company. Our
pledge is to provide the market with the best quality products at competitive prices through a
customer-driven and service-oriented, dynamic management team. To meet this obligation,
the company will continue updating skills of its employees by training, acquisition of new
technology, and regular re-evaluation of its quality control and assurance systems.
Appropriate resources of the company will be directed towards achieving the quality goals
through employee participation.

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QUALITY FOCUS

Manufacturing top quality products has always been our top priority. To achieve this, we
have implemented sound engineering policies which we are constantly improving. Today, our
idea of processes includes not only manufacturing policies but also business and management
processes. Supporting these processes are stringent quality assurance procedures and a
comprehensive system of internal audits

HIGHLIGHTS

 Our organization complies with the ISO 9001 standard
 Packages was the 6th company in Pakistan to adopt the ISO series as its quality
standard
 We have 57 Quality Improvement Teams in various departments to ensure continuous
improvement focus in the organization
 Key performance indicators (KPI) concept: Each division in the company sets
SMART (specific, measurable, achievable, recordable and time-based) targets for the
annual improvement of its key process parameters, reviewed by the management
every quarter
 We have a comprehensive set of engineering tools, rules, processes, training
materials, guidelines, best practices and other supporting documents to make sure our
products comply with every possible customer requirement.

ISO 19001:2000:
 Business Unit Flexible (BUF) in 1995
 Business Unit Carton (BUC) in 1997
 Consumer Products Division (CPD) & Tissue Line (TL) in 1998
 Business Unit Corruwall Products (BUCP) in 1999
 Pulp, Paper and Board Mill (PBM) in 1999

ISO 14001:2004:
 PBM in 2006
 BUF, BUC, CPD, TL and BUCP in 2007

Food Safety & Hygiene Systems (HACCP):
 BUF in 2007
 BUC in 2008

CONTINUOUS IMPROVEMENT

The first ISO 9001 certification in 1995 was also made the basis of the ultimate goal of total
quality management. In 2000, the concept of Quality Improvement Teams (QIT) was
introduced in various departments. There are 57 QITs today, working on the Japanese

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principle of continuous incremental improvement called KAIZEN. Their performance is also
monitored quarterly and cash awards and certificates of achievement given to the top
performing team. . . . and what does being ISO certified mean?

 Enhanced product quality and reliability at a reasonable price
 Greater compatibility and interoperability of goods
 Simplification for improved usability
 Improved health, safety and environment protection.
 Reduction of waste.
 Increased distribution efficiency and maintenance

International Organization for Standardization (ISO)
Discover ISO
Because "International Organization for Standardization" would have different acronyms
in different languages ("IOS" in English, "OIN" in French for Organisation
internationale de normalisation), its founders decided to give it also a short, all-
purpose name. They chose "ISO", derived from the Greek isos, meaning "equal".
Whatever the country, whatever the language, the short form of the organization's name
is always ISO

Founding
ISO was born from the union of two organizations - the ISA (International Federation
of the National Standardizing Associations),. established in New York in 1926, and
the UNSCC (United Nations Standards Coordinating Committee), established in
1944.

In October 1946, delegates from 25 countries, meeting at the Institute of Civil
Engineers in London, decided to create a new international organization, of which the
object would be "to facilitate the international coordination and unification of
industrial standards". The new organization, ISO, officially began operations on 23
February 1947.

 The Founding of ISO, Willy Kuert, Swiss delegate to the London conference in 1946
(from: Friendship among equals)
 The Formation of ISO, JoAnne Yates (MIT Sloan School) and Craig Murphy
(Wellesley College)

The early years
In April 1947, a meeting in Paris produced a recommended list of 67 ISO technical
committees, about two-thirds of which were based on previous ISA committees. By

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the early 1950s, ISO technical committees were starting to produce what were known
at the time as “Recommendations”.

The basic idea of postwar international standardization was to derive International
Standards from those already developed nationally, and then to re-implement them
nationally. ISO’s Recommendations were therefore only intended to influence
existing national standards.

 The early years, Roger Maréchal, Assistant Secretary-General of ISO, 1964-1979
(from: Friendship among equals)

The first ISO General Assembly was organized in Paris in 1949. It was inaugurated at
a public meeting held in the grand amphitheatre at the Sorbonne University.

As reported by Raymond Frontward, former Director-General of AFNOR, “a full
house, including the President of the French Republic, Vincent Auriol, and the
Director General of UNESCO, Jaime Torres-Bidet, listened to the speeches. Then
came the translations (consecutive of course - simultaneous interpretation had yet to
be invented). In English first, then in Russian …A quiver of curiosity runs through the
enormous assembly.

"Young people today find it difficult to imagine how far we were, at that time, from
the global view that now seems so familiar. The earth was an archipelago of distinct
worlds.”

 Standards-related activities, Raymond Frontard, Former Director-General of
AFNOR (from: Friendship among equals)

In the course of the 1950s and 1960s, an increasing number of new ISO member
bodies came from the developing world.

The International Standards developed by ISO are of high value to developing
countries. They offer indeed practical solutions to a variety of issues related to
international trade and technology transfer because they represent a reservoir of
technological know-how and of product, performance, quality, safety and
environmental specifications.

However, to take advantage of International Standards and to participate in their
development, developing countries had to face substantial additional problems in
comparison with industrialized nations, ranging from the lack of established industrial
infrastructures and related technical components (including national standards,
metrology and testing institutions and facilities), to the severe limitation of financial
and technical resources.

The first landmark in ISO’s attempts to respond to the needs of these members was
the establishment in 1961 of the DEVCO Committee on developing country matters

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(initiated on the basis of a memorandum to ISO Council from Mr. F. Hadass of
Israel). Other initiatives followed. In 1967, a developing countries conference was
held in Moscow and in1968 a new category of correspondent member was
established, so that developing countries could play a role in ISO’s work without
incurring the cost of full membership.

A further category of subscriber member was eventually added in 1992, allowing very
small economies to maintain a link with ISO for a minimum fee.

Since the 1960s, the membership and role of developing countries within ISO has
been continuously increasing. In parallel, the attention of the organization to the needs
of developing countries has substantially evolved, along with the undertaking of
programmes providing technical assistance and capacity building and a variety of
initiatives to facilitate developing countries' participation in international
standardization.

 ISO Action Plan for developing countries
 ISO Online's Resources for ... Developing countries

According to ISO’s first-ever Annual Review in 1972, the underlying causes of the
acceleration of the pace of international standardization included “an explosive
growth in international trade” caused by a “revolution in transportation methods”. By
the mid-sixties a demand, not only a desire, for International Standards had
developed. The sources of this demand included multinational companies, standards
institutions in developing countries and government regulatory authorities.

What had laid the foundation for the growth of the output of ISO during the seventies
was the turn in emphasis from national to International Standards which took place in
the late 1960s.

This change of emphasis was underlined by the decision in 1971 to begin publishing
the results of ISO’s technical work as International Standards rather then
Recommendations.

 The expansion of ISO, Olle Sturen, Secretary-General Emeritus of ISO (from:
Friendship among equals

Members

ISO has 163 national members, out of the 203 total countries in the world.

ISO has three membership categories:

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 Member bodies are national bodies that are considered to be the most representative
standards body in each country. These are the only members of ISO that have voting
rights.
 Correspondent members are countries that do not have their own standards
organization. These members are informed about ISO's work, but do not participate in
standards promulgation.
 Subscriber members are countries with small economies. They pay reduced
membership fees, but can follow the development of standards.

Participating members are called "P" members as opposed to observing members which are
called "O" members.

 ISO 9000

ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained
by ISO, the International Organization for Standardization and is administered by
accreditation and certification bodies. The rules are updated, as the requirements motivate
changes over time. Some of the requirements in ISO 9001:2008 (which is one of the
standards in the ISO 9000 family) include

 a set of procedures that cover all key processes in the business;
 monitoring processes to ensure they are effective;
 keeping adequate records;
 checking output for defects, with appropriate and corrective action where necessary;
 regularly reviewing individual processes and the quality system itself for
effectiveness; and
 facilitating continual improvement

A company or organization that has been independently audited and certified to be in
conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001
registered". Certification to an ISO 9001 standard does not guarantee any quality of end
products and services; rather, it certifies that formalized business processes are being applied.

Although the standards originated in manufacturing, they are now employed across several
types of organizations. A "product", in ISO vocabulary, can mean a physical object, services,
or software.

Quality management system

General requirements: The Company documents, implements, and maintains a quality
management system and continually improves its effectiveness in accordance with the
requirements of the ISO 9001:2008 International Standard. (BBS Holdings Limited):that
comprises of; . Guard Dog Security Services Ltd

a) determines the processes needed for the quality management system and their application
throughout Packages,
b) determines the sequence and interaction of these processes,
c) determines criteria and methods needed to ensure that both the operation and control of
these processes are effective,
d) ensures the availability of resources and information necessary to support the operation

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and monitoring of these processes,
e) monitors, measures where applicable and analyzes these processes,
f) implements actions necessary to achieve planned results and continual improvement of
these processes.

These processes are managed by Packages in accordance with the requirements of the ISO
9001:2008 International Standard. Where Packages chooses to outsource any process that
affects product conformity with requirements, Packages ensures control over such processes.
The type and extent of control of such outsourced processes are identified within the quality
management system.

NOTE: Processes needed for the quality management system referred to above include
processes for management activities, provision of resources, product realization,
measurement, analysis, and improvement.

Documentation requirements

General

The quality management system documentation includes:
a) documented statements of a quality policy and quality objectives,
b) a quality manual,
c) documented procedures and records required by the ISO 9001:2008 International Standard,
and
d) documents, including records determined by Packages to be necessary to ensure the
effective planning, operation and control of its processes
NOTE 1: Where the term “documented procedure” appears within the ISO 9001:2008
International Standard, means that a procedure is established, documented, implemented and
maintained.
NOTE 2: Documentation can be in any form or type of medium.

Management responsibility

Management commitment

Top management is committed to the development and implementation of the quality
management system and continually improves its effectiveness by: a) communicating to
Packages the importance of meeting customer as well as statutory and regulatory
requirements, b) establishing a quality policy, c) establishing quality objectives, d)
conducting management reviews, and e) ensuring the availability of resources.

Customer focus Top management ensures that customer requirements are determined and are
met with the aim of enhancing customer satisfaction.

Quality policy “Packages is committed to Exceeding Customer Expectations through
Implementation and Continuous Improvement of our Quality Management System. Absolute
Customer Satisfaction is the expectation and, will be achieved through supplying a Superior
Product, On-time, at a Competitive Price.” Top management ensures that the quality policy a)
is appropriate to the purpose of the quality policy, b) includes a commitment to comply with

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requirements and continually improve the effectiveness of the quality management system, c)
provides a framework for establishing and reviewing quality objectives, d) is communicated
and understood within Packages, and e) is reviewed for continuing suitability.

Planning

Quality objectives Top management ensures that quality objectives, including those needed to
meet requirements for product, are established at relevant functions and levels within
Packages. The quality objectives are measurable and consistent with the quality policy. 1.
Meet or exceed customer expectations by effective communication and review of customer
requirements. 2. Provide our customers high quality products and services, on time delivery,
and at a reasonable cost. 3. Effectively manage our products, processes, and services to
provide superior customer satisfaction. 4. Promote the safety, awareness, and well being of
employees through training and education.

Quality management system planning Top management ensures that: a) the planning of the
quality management system is carried out in order to meet the requirements given in 4.1, as
well as the quality objectives, and b) the integrity of the quality management system is
maintained when changes to the quality management system are planned and implemented.

Responsibility, authority and communication

Responsibility and authority Top management ensures that responsibilities and authorities are
defined and communicated within Packages to promote effective management of the quality
system. An Organizational Chart illustrates the responsibility and relative authority of the
personnel who manage, perform, and verify the activities affecting the QMS. Changes to the
quality system are planned within the framework of management reviews. These changes
may be in response to changing circumstances, such as product, process, capacity, or other
operational or organizational changes; or to improve the effectiveness and efficiency of the
quality system. Supporting Documentation Organizational Chart

Management representative Top management has appointed a member of the organization’s
management who, irrespective of other responsibilities, has the responsibility and authority
that includes a) ensuring that processes needed for the quality management system are
established, implemented and maintained, b) reporting to top management on the
performance of the quality management system and any need for improvement, and c)
ensuring the promotion of awareness of customer requirements throughout Packages. NOTE
The responsibility of a management representative can include liaison with external parties
on matters relating to the quality management system.

Internal communication Top management ensures that appropriate communication processes
are established within Packages and that communication takes place regarding the
effectiveness of the quality management system.

Management Review

General Top management reviews Packages’s quality management system, at planned
intervals, to ensure its continuing suitability, adequacy and effectiveness. The review includes
assessing opportunities for improvement and the need for changes to the quality management

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system, including the quality policy and quality objectives. Records from management
reviews are maintained Supporting Documentation QOP-56-01 Management Review

Review input The input to management review includes information on: a) results of audits,
b) customer feedback, c) process performance and product conformity, d) status of preventive
and corrective actions, e) follow-up actions from previous management reviews, f) changes
that could affect the quality management system, and g) recommendations for improvement.

Review output The output from the management review includes any decisions and actions
related to: a) improvement of the effectiveness of the quality management system and its
processes, b) improvement of product related to customer requirements, and c) resource
needs.

Resource management

Provision of resources Packages determines and provides the resources needed a) to
implement and maintain the quality management system and continually improve its
effectiveness, and b) to enhance customer satisfaction by meeting customer requirements.

Human resources

General Personnel performing work affecting conformity to product requirements are
competent on the basis of appropriate education, training, skills and experience. 6.2.2
Competence, training, and awareness Packages : a) determines the necessary competence for
personnel performing work affecting conformity to product requirements, b) where
applicable, provides training or takes other actions to achieve the necessary competence, c)
evaluates the effectiveness of the actions taken, d) ensures that its personnel are aware of the
relevance and importance of their activities and how they contribute to the achievement of the
quality objectives, and e) maintains appropriate records of education, training, skills and
experience. (Supporting Documentation QOP-62-01 Competence, Training, and Awareness

Infrastructure Packages determines, provides for, and maintains the infrastructure needed to
achieve conformity to product requirements. Infrastructure includes, as applicable: a)
buildings, workspace and associated utilities, b) Process equipment (both hardware and
software), and c) Supporting services (such as transport, communication or information
systems). Supporting Documentation QOP-63-01 Equipment Maintenance

Work environment Packages determines and manages the work environment needed to
achieve conformity to product requirements.

Product realization

Planning of product realization

Packages plans and develops the processes needed for product realization. Planning of
product realization is consistent with the requirements of the other processes of the quality
management system In planning product realization, Packages determines the following, as
appropriate:

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a) quality objectives and requirements for the product,
b) the need to establish processes, and documents, and provide resources specific to
the product,
c) required verification, validation, monitoring, measurement, inspection and test
activities specific to the product and the criteria for product acceptance, and
d) records needed to provide evidence that the realization processes and resulting
product meet requirements
b) The output of the planning is in a form suitable for Packagess method of operations.

NOTE 1 A document specifying the processes of the quality management system (including
the product realization processes) and the resources to be applied to a specific product,
project or contract, is referred to as the quality plan.

NOTE 2 Packages also applies the requirements given in 7.3 to the development of product
realization processes. Supporting Documentation

QOP-71-01 Planning of Product Realization

Customer- related processes

Determination of requirements related to the product

Packages determines:
a) requirements specified by the customer, including the requirements for delivery and post-
delivery activities,
b) requirements not stated by the customer but necessary for specified or intended use, where
known,
c) statutory and regulatory requirements applicable to the product, and
d) any additional requirements considered necessary by Packages.

Supporting Documentation
QOP-72-02 Order Processing & Review

Review of requirements related to the product

Packages reviews the requirements related to the product. This review is conducted prior to
Packagess commitment to supply a product to the customer (e.g. submission of tenders,
acceptance of contracts or orders, acceptance of changes to contracts or orders) and ensures
that:
a) product requirements are defined,
b) contract or order requirements differing from those previously expressed are resolved, and
c) Packages has the ability to meet the defined requirements.

Records of the results of the review and actions arising from the review are maintained
Where the customer provides no documented statement of requirement, the customer
requirements are confirmed by Packages before acceptance. Where product requirements are
changed, Packages ensures that relevant documents are amended and that relevant personnel
are made aware of the changed requirements.

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Customer communication

Packages determines and implements effective arrangements for communicating with
customers in relation to:

a) product information,
b) enquiries, contracts or order handling, including amendments, and
c) customer feedback, including customer complaints.

QOP-72-02 Order Processing & Review
QOP-85-02 Customer Complaints

Design and development Excluded

Purchasing

Purchasing process Packages ensures that purchased product conforms to specified purchase
requirements. The type and extent of control applied to the supplier and the purchased
product is dependent upon the effect of the purchased product on subsequent product
realization or the final product.
QOP-74-01 Purchasing

Purchasing Information

Purchasing information describes the product to be purchased, including where appropriate a)
requirements for approval of product, procedures, processes and equipment,
b) requirements for qualification of personnel, and
c) quality management system requirements.

Packages ensures the adequacy of specified purchase requirements prior to their
communication to the supplier.
QOP-74-01 Purchasing

Verification of purchased product

Packages establishes and implements the inspection or other activities necessary for ensuring
that purchased product meets specified purchase requirements. Where Packages or its
customer intends to perform verification at the supplier’s premises, Packages states the
intended verification arrangements and method of product release in the purchasing
information.


QOP-74-02 Verification of Purchase Product

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Production and service provision

Control of production and service provision

As applicable, Packages plans and carries out production and service provisions under
controlled conditions. Controlled conditions include:

a) the availability of information that describes the characteristics of the product,
b) the availability of work instructions, as necessary,
c) the use of suitable equipment,
d) the availability and use of monitoring and measuring equipment,
e) the implementation of monitoring and measurement activities, and
f) the implementation of product release, delivery and post-delivery activities.


QOP-75-01 Work Order and Production Records

QOP-63-01 Equipment Maintenance

QOP-76-01 Measuring and Monitoring Equipment

QOP-84-02 Final Inspection

QOP-75-06 Shipping

Validation of processes for production and service provision

Packages validates any processes for production and service provisions where the resulting
output cannot be verified by subsequent monitoring or measurement and, as a consequence,
deficiencies become apparent only after the product is in use or the service has been
delivered. Validation demonstrates the ability of these processes to achieve planned results.
As applicable, Packages establishes arrangements for these processes including:

a) defined criteria for review and approval of the processes,
b) approval of equipment and qualification of personnel,
c) use of specific methods and procedures,
d) requirements for records and
e) revalidation.

Note: Packages has no Special Processes at this time.

Identification and traceability Where appropriate, Packages identifies the product by suitable
means throughout product realization. Packages identifies the product status with respect to
monitoring and measurement requirements throughout product realization. Where traceability
is a requirement, Packages controls the unique identification of the product an maintain
records. Supporting Documentation

QOP-75-04 Product Identification and Traceability

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Customer property

Packages exercises care with customer property while it is under Packagess control or being
used by Packages. Packages identify, verifies, protects and safeguards customer property
provided for use or incorporation into the product. If any customer property is lost, damaged
or otherwise found to be unsuitable for use, Packages will report this the customer and
maintain records.

Note: Customer property can include intellectual property and personal date.

Note: Packages has no Customer Property at this time.

Preservation of product

Packages preserves the product during internal processing and delivery to the intended
destination in order to maintain conformity to requirements. As applicable, preservation
includes identification, handling, packaging, storage and protection. Preservation also applies
to the constituent parts of a product.

Control of monitoring and measuring equipment

Packages determines the monitoring and measurement to be undertaken and the monitoring
and measuring equipment needed to provide evidence of conformity of product to determined
requirements. Packages establishes processes to ensure that monitoring and measurement can
be carried out, and is carried out in a manner that is consistent with the monitoring and
measurement requirements. Where necessary to ensure valid results measuring equipment is:

a)calibrated, verified or both at specified intervals, or prior to use, against measurement
standards traceable to international or national measurement standards; where no such
standards exist, the basis used for calibration or verification shall be recorded,
b)adjusted or re-adjusted as necessary,
c)have identification in order to determine it’s calibration status,
d)safeguarded from adjustments that would invalidate the measurement result, and
e)protected from damage and deterioration during handling, maintenance and storage.

In addition, Packages assesses and records the validity of the previous measuring results
when the equipment is found not to conform to requirements. Packages takes appropriate
action on the equipment and any product affected. Records of the results of calibration and
verification are maintained

Note: Confirmation of the ability of computer software to satisfy the intended application will
typically include its verification and configuration management to maintain its suitability for
use Supporting Documentation
QOP-76-01 Monitoring and Measuring Equipment

Measurement, analysis and improvement

General Packages plans and implements the monitoring, measurement, analysis and
improvement processes needed: a)to demonstrate conformity to product requirements, b)to
ensure conformity of the quality management system, and c)to continually improve the

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effectiveness of the quality management system. This includes determination of applicable
methods, including statistical techniques, and the extent of their use.

Monitoring and measurement

Customer satisfaction As one of the measurements of the performance of the quality
management system, Packages monitors information relating to customer perception as to
whether Packages has met customer requirements. The methods for obtaining and using this
information are determined. Supporting Documentation QOP-82-01 Customer Satisfaction

Internal Audits Packages conducts internal audits at planned intervals to determine whether
the quality management system: a)conforms to the planned arrangements to the requirements
of ISO 9001:2008 and to the quality management system requirements established by
Packages, and b)is effectively implemented and maintained. An audit program is planned,
taking into consideration the status and importance of the processes and areas to be audited,
as well as the results of previous audits. The audit criteria, scope, frequency and methods are
defined. The selection of auditors and conduct of audits ensure objectivity and impartiality of
the audit process. Auditors do not audit their own work. The responsibilities and
requirements for planning and conducting audits, and for reporting results and maintaining
records are defined in a documented procedure. The management responsible for the area
being audited ensures that any necessary correction and corrective actions are taken without
undue delay to eliminate detected nonconformities and their causes. Follow-up activities
include the verification of the actions taken and the reporting of verification
results.Supporting Documentation QOP-82-02 Internal

Quality Audits

Monitoring and measurement of processes Packages applies suitable methods for monitoring
and where applicable, measurement of the quality management system processes. These
methods demonstrate the ability of the processes to achieve planned results. When planned
results are not achieved, correction and corrective action is taken, as appropriate.

8.2.4 Monitoring and measurement of product Packages monitors and measures the
characteristics of the product to verify that product requirements have been met. This is
carried out at appropriate stages of the product realization process in accordance with the
planned arrangements (see 7.1). Evidence of conformity with the acceptance criteria is
maintained. Records indicate the person(s) authorizing release of product for delivery to the
customer (see 4.2.4). The release of product and delivery of service to the customer does not
proceed until the planned arrangements (see 7.1) have been satisfactorily completed, unless
otherwise approved by a relevant authority and where applicable, by the customer.
Supporting Documentation QOP-82-03 In Process Inspections QOP-82-04 Final Inspection

8.3 Control of nonconforming product Packages ensures that product which does not conform
to product requirements is identified and controlled to prevent its unintended use or delivery.
A documented procedure is established to define the controls and related responsibilities and
authorities for dealing with nonconforming products. Where applicable Packages deals with
nonconforming product by one or more of the following ways: a)by taking action to eliminate
the detected nonconformity, b)by authorizing its use, release or acceptance under concession
by a relevant authority and, where applicable, by the customer, and c)by taking action to
preclude its original intended use or application. d)by taking action appropriate to the effects,

17


or potential effects, of the nonconformity when nonconforming product is detected after
delivery or use has started. When nonconforming product is corrected the product is subject
to re-verification to demonstrate conformity to the requirements. When nonconforming
product is detected after delivery or use has started, Packages takes action appropriate to the
effects, or potential effects, of the nonconformity. Records of the nature of nonconformities
and any subsequent actions taken, including concessions obtained, are maintained.
Supporting Documentation QOP-83-01 Control of Nonconforming Product

Analysis of data Packages determines, collects and analyzes appropriate data to demonstrate
the suitability and effectiveness of the quality management system and to evaluate where
continual improvement of the effectiveness of the quality management system can be made.
This includes data generated as a result of monitoring and measurement and from other
relevant sources. The analysis of data provides information relating to:customer satisfaction
conformity to product requirements characteristics and trends of processes and products
including opportunities for preventive action and suppliers, Supporting Documentation QOP-
56-01 Management Review

Improvement

Continual improvement

Packages continually improves the effectiveness of the quality management system through
the use of the quality policy, quality objectives, audit results, analysis of data, corrective and
preventive actions and management reviews. Supporting Documentation QOP-85-01
Continual Improvement

Corrective action Packages takes action to eliminate the causes of nonconformities in order to
prevent recurrence. Corrective actions are appropriate to the effects of the nonconformities
encountered. A documented procedure is established to define requirements for: a) reviewing
nonconformities (including customer complaints), b) determining the causes of
nonconformities, c) evaluating the need for action to ensure that nonconformities do not
recur, d) determining and implementing action needed, and records of the results of action
taken reviewing the effectiveness of the corrective action taken. Supporting Documentation
QOP-85-02 Customer Complaints QOP-85-03 Corrective and Preventive Actions

Preventive action Packages determines actions to eliminate the causes of potential
nonconformities in order to prevent their occurrence. Preventive actions are appropriate to the
effects of the potential problems. A documented procedure is established to define
requirements for: a) determining potential nonconformities and their causes, b) evaluating the
need for action to prevent occurrence of nonconformities, c) determining and implementing
action needed, d) records of results of action taken and e) reviewing the effectiveness of the
preventive action taken. Supporting Documentation QOP-85-03 Corrective and Preventive
Actions

1987 version

ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three 'models' for
quality management systems, the selection of which was based on the scope of activities of
the organization:

18


 ISO 9001:1987 Model for quality assurance in design, development, production, installation,
and servicing was for companies and organizations whose activities included the creation of
new products.
 ISO 9002:1987 Model for quality assurance in production, installation, and servicing had
basically the same material as ISO 9001 but without covering the creation of new products.
 ISO 9003:1987 Model for quality assurance in final inspection and test covered only the final
inspection of finished product, with no concern for how the product was produced.

ISO 9000:1987 was also influenced by existing U.S. and other Defense Standards ("MIL
SPECS"), and so was well-suited to manufacturing. The emphasis tended to be placed on
conformance with procedures rather than the overall process of management—which was
likely the actual intent.

1994 version

ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking
final product, and continued to require evidence of compliance with documented procedures.
As with the first edition, the down-side was that companies tended to implement its
requirements by creating shelf-loads of procedure manuals, and becoming burdened with an
ISO bureaucracy. In some companies, adapting and improving processes could actually be
impeded by the quality system.

2000 version

ISO 9001:2000 combines the three standards 9001, 9002, and 9003 into one, called 9001.
Design and development procedures are required only if a company does in fact engage in the
creation of new products. The 2000 version sought to make a radical change in thinking by
actually placing the concept of process management front and center ("Process management"
was the monitoring and optimizing of a company's tasks and activities, instead of just
inspecting the final product). The 2000 version also demands involvement by upper
executives, in order to integrate quality into the business system and avoid delegation of
quality functions to junior administrators. Another goal is to improve effectiveness via
process performance metrics — numerical measurement of the effectiveness of tasks and
activities. Expectations of continual process improvement and tracking customer satisfaction
were made explicit.

The ISO 9000 standard is continually being revised by standing technical committees and
advisory groups, who receive feedback from those professionals who are implementing the
standard

ISO 9001:2008 only introduces clarifications to the existing requirements of ISO 9001:2000
and some changes intended to improve consistency with ISO 14001:2004. There are no new
requirements. Explanation of changes in ISO 9001:2008. A quality management system
being upgraded just needs to be checked to see if it is following the clarifications introduced
in the amended version.

ISO 14000
The ISO 14000 is a family of internationally-recognized standards for environmental
management systems that is applicable to any business or organization, regardless of size,

19


location or income. These standards are developed by the International Organization for
Standardization (ISO), which has representation from committees all over the world. The ISO
14000 family includes most notably the ISO 14001 standard, which represents the core set of
standards used by organizations for designing and implementing an effective environmental
management system. Other standards included in this series are ISO 14004, which gives
additional guidelines for a good environmental management system, and more specialized
standards dealing with specific aspects of environmental management.

The ISO 14000 environmental management standards exist to help organizations minimize
how their operations negatively affect the environment. The major objective of the ISO
14000 series of norms is "to promote more effective and efficient environmental management
in organizations and to provide useful and usable tools - ones that are cost effective, system-
based, flexible and reflect the best organizations and the best organizational practices
available for gathering, interpreting and communicating environmentally relevant
information"

It offers a source of guidance for introducing and adopting environmental management
systems based on the best universal practices, in the same way that the ISO 9000 series on
quality management systems, which is now widely applied, represents a tool for technology
transfer of the best available quality management practices. In structure the ISO 14000 series
is similar to ISO 9000 quality management and both can be implemented side by side.

ISO 14001

The International Standard ISO 14001 sets out requirements for an Environmental
Management System (EMS) which can be employed by an organization to measure and
document their environmental impact. EMS’s that meet the ISO 14001 requirements can be
externally audited and certified by an accredited Certification Body. The certification body
must be accredited by the ANSI-ASQ National Accreditation Board in the USA, the United
Kingdom Accreditation Service in the UK, or the National Accreditation Board in Ireland.
Certification auditors need to be accredited by the International Registrar of Certification
Auditors.

To check whether an organization is ready for certification to ISO 14001 they can use an ISO
14001 Self Assessment Checklist aimed at outlining the required elements.

In 2004, the ISO 14001 standard was updated to reflect changes in environmental
consciousness. The updated systematic ISO 14001:2004 approach requires the organization
to take a hard look at all areas where its activities have an environmental impact. It can lead
to benefits such as the following: reduced cost of waste management, savings in consumption
of energy and materials, lower distribution costs, improved corporate image among
regulators, customers and the public, and framework for continual improvement of
environmental performance.

ISO 14000 series standards

 ISO 14001 Environmental management systems—Requirements with guidance for
use
 ISO 14004 Environmental management systems—General guidelines on principles,
systems and support techniques

20


 ISO 14015 Environmental assessment of sites and organizations
 ISO 14020 series (14020 to 14025) Environmental labels and declarations
 ISO 14031 Environmental performance evaluation—Guidelines
 ISO 14040 series (14040 to 14049), Life Cycle Assessment, LCA, discusses pre-
production planning and environment goal setting.
 ISO 14050 terms and definitions.
 ISO 14062 discusses making improvements to environmental impact goals.
 ISO 14063 Environmental communication—Guidelines and examples
 ISO 14064 Measuring, quantifying, and reducing Greenhouse Gas emissions.
 ISO 19011 which specifies one audit protocol for both 14000 and 9000 series
standards together. This replaces ISO 14011 meta-evaluation—how to tell if your
intended regulatory tools worked. 19011 is now the only recommended way to
determine this

Implementation

The first ISO 9001 certification in 1995 was also made the basis of the ultimate goal of total
quality management. In 2000, the concept of Quality Improvement Teams (QIT) was
introduced in various departments. There are 57 QITs today, working on the Japanese
principle of continuous incremental improvement called KAIZEN. Their performance is also
monitored quarterly and cash awards and certificates of achievement given to the top
performing team.

The ISo-14000 (EMS) was implemented for environmental protection and to minimize
negative effects on environment.ISO-14001-2004 is applied in organization.

Problems in implementation of ISO Standards
There are many problems faced by organization in implementation of ISO standards.

Documentation

A common criticism of ISO 9001 is the amount of money, time and paperwork required for
registration. According to Barnes, "Opponents claim that it is only for documentation.
Proponents believe that if a company has documented its quality systems, then most of the
paperwork has already been completed.

Management Commitment

For implementation of ISO Standards there must be management commitment because there
people in organization always adverse in changes. So in there was the problem of
management commitment in organization.

Cost
The cost of implementation is main problem in ISO Standards. Because there must be some
changes in organization’s structure.

21


Registration

A common criticism of ISO 9001 is the amount of money, time and paperwork required for
registration. Opponents claim that it is only for documentation. Proponents believe that if a
company has documented its quality systems, then most of the paperwork has already been
completed.

Training

For practice of ISO Standards the organization the employee must be trained and well known
to standard. So there is need to train employees to practice ISO Standard in organization
which high cost.

Benefits of ISO implementation
Packages plans and implements the monitoring, measurement, analysis and improvement
processes needed: a)to demonstrate conformity to product requirements, b)to ensure
conformity of the quality management system, and c)to continually improve the effectiveness
of the quality management system. This includes determination of applicable methods,
including statistical techniques, and the extent of their use.

Customer satisfaction As one of the measurements of the performance of the quality
management system, Packages monitors information relating to customer perception as to
whether Packages has met customer requirements. The methods for obtaining and using this
information are determined. Supporting

Monitoring and measurement of processes Packages applies suitable methods for monitoring
and where applicable, measurement of the quality management system processes. These
methods demonstrate the ability of the processes to achieve planned results. When planned
results are not achieved, correction and corrective action is taken, as appropriate.

Monitoring and measurement of product Packages monitors and measures the characteristics
of the product to verify that product requirements have been met. This is carried out at
appropriate stages of the product realization process in accordance with the planned
arrangements Evidence of conformity with the acceptance criteria are maintained. Records
indicate the person(s) authorizing release of product for delivery to the customer release of
product and delivery of service to the customer does not proceed until the planned
arrangements have been satisfactorily completed, unless otherwise approved by a relevant
authority and where applicable, by the customer.

Control of nonconforming product Packages ensures that product which does not conform
to product requirements is identified and controlled to prevent its unintended use or delivery.
A documented procedure is established to define the controls and related responsibilities and
authorities for dealing with nonconforming products. Where applicable Packages deals with
nonconforming product by one or more of the following ways: a)by taking action to eliminate
the detected nonconformity, b)by authorizing its use, release or acceptance under concession
by a relevant authority and, where applicable, by the customer, and c)by taking action to
preclude its original intended use or application. d)by taking action appropriate to the effects,
or potential effects, of the nonconformity when nonconforming product is detected after

22


delivery or use has started. When nonconforming product is corrected the product is subject
to re-verification to demonstrate conformity to the requirements. When nonconforming
product is detected after delivery or use has started, Packages takes action appropriate to the
effects, or potential effects, of the nonconformity. Records of the nature of nonconformities
and any subsequent actions taken, including concessions obtained, are maintained

Analysis of data Packages determines collects and analyzes appropriate data to demonstrate
the suitability and effectiveness of the quality management system and to evaluate where
continual improvement of the effectiveness of the quality management system can be made.
This includes data generated as a result of monitoring and measurement and from other
relevant sources. The analysis of data provides information relating to: a)customer ,
b)conformity to product requirements c)characteristics and trends of processes and products
including opportunities for preventive action (d)suppliers

Continual improvement

Packages continually improves the effectiveness of the quality management system through
the use of the quality policy, quality objectives, audit results, analysis of data, corrective and
preventive actions and management reviews.

ISO 14001:2004 is a tool that can be used to meet internal objectives

 provide assurance to management that it is in control of the organizational
processes and activities having an impact on the environment
 Assure employees that they are working for an environmentally responsible
organization.

ISO 14001:2004 can also be used to meet external objectives:

 provide assurance on environmental issues to external stakeholders – such as
customers, the community and regulatory agencies
 comply with environmental regulations
 support the organization's claims and communication about its own
environmental policies, plans and actions
 provides a framework for demonstrating conformity via suppliers' declarations of
conformity, assessment of conformity by an external stakeholder - such as a
business client - and for certification of conformity by an independent certification
body.

Auditing
Two types of auditing are required to become registered to the standard: auditing by an
external certification body (external audit) and audits by internal staff trained for this
process (internal audits). The aim is a continual process of review and assessment, to verify
that the system is working as it's supposed to, find out where it can improve and to correct or
prevent problems identified. It is considered healthier for internal auditors to audit outside
their usual management line, so as to bring a degree of independence to their judgments.

23


Internal Audits

 Ayesha M.khalid Azeem

(Assistant manager QMS &EHS)

 Muhammad Asif

External Audit

Packages have SGS as external audit to oversee implementation of ISO Standard in
organization.

SGS Pakistan (Pvt.) Ltd

SGS, a world's leading multinational inspection, verification, testing and certification
Company, is recognized as the global benchmark for quality and integrity having a workforce
of 53'000 employees and operating a network of over 1 200 offices and laboratories around
the world.

References;

1. http://en.wikipedia.org/wiki/International_Organization_for_Standa
rdization
2. http://www.iso.org/iso/about/discover-iso_isos-name.htm
3. Ayesha M.khalid Azeem (Assistant manager QMS &EHS)
4. Muhammad Asif
5. http://www.sgs.com

24


Project
On

Packages Ltd
Subject

Total Quality Management
Submitted to;
Prof. Ahamad Usman
Submitted by;
Abdul-Majeed……………………………………………219

M.Shahid…………………………………………………..229

Abdul-Rauf………………………………………………..243

Abdur-Rehman Moeen……………………………………252

Abdul-Wahab Khan……………………………………….259

Mlik Jamshid Awan………………………………………264

Hailey College of Commerce
University of the Punjab, Lahore

25

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