Identify main operations, The core processes of the organization, External and internal customers and suppliers related to the organization.

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Assignment # 1
Group Members
Muhammad Jamshed 1871-2017
Muhammad Qazal Bash 1821-2017
Furqan Qazi 2488-2017
Taufiq Alam 2157-2017
Submitted to Haris Ahmed Khan
Class: MBA
Semester: 6th
Submission Date: 02-05-2020
Department of Management Science
Indus University Karachi
Gulshan Campus

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Contents
Question -1
1) Identify main operations that comprise the total business cycle of the organization.
HorizonSteel (Pvt) Ltd. 5
2) Identify the core processes of the organization and briefly describe each process in few
lines.
Importof Vessel 5
Clearance fromGovernmentDepartment 6
Oil cleaning&RemovingSpare parts(ferrousandnonferrousItems) 6
Cutting 7
3) List down main external and internal customers and suppliers related tothe organization.
External Supplier 7
Raw Material 7
EngineeringService 8
Internal Supplier 8
Internal Customer 9
External Customer 10
Question -2
Briefly describe each of the following (500-1000 words) Total Quality Management (TQM)
Factors:
Continuous Improvement 11
PDCA / Deming Wheel 11
Six Sigma 11
Conceptof Six sigma 12

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How Six SigmaWorks 13
Six SigmaMethodologies 13
DMAIC Roadmap 13
Six sigmaOrganizationStructure 14
Advantage 14
International QualityDocumentationStandards 14
Understandingthe needforISODocumentationstandards 15
EnsuringISODocumentationstandardsare met 15

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Question -1
Select any Company/Organization/Enterprise and:
1) Identify main operations that comprise the total business cycle of the organization.
Horizon Steel (Pvt) Ltd.
Horizonisa shipbreakingcompany, importscrapedvessels those have done theirlifespan orwhenthey
are no longereconomicallyviabletheyare soldforre-use orforthe extractionof raw materialschiefly
scrap. It mayalso known asshipdismantlingorshiprecycling. Shipbreakingprovides raw material for
steel industryaswell asfixture andother equipmentonboardthe vessel canreused.
2) Identify the core processes of the organization and briefly describe each process in few
lines.
Importof Vessel
Clearance fromGovernmentDepartment
Oil cleaning&RemovingSpare parts(ferrousandnonferrous Items)
Cutting
Import of Vessel
Companycontact to sellerorbrokerwhowantto sale outtheirvessel fordismantling.Theyaskthemto
sendthe copy of documentsof the vessel afterthe reviewof the documentandprice,vesselcome to

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the outerof Gadani beach or at Karachi Port Company sendtheirinspectionteamonthe vessel tocheck
the vessel accordingtothe documents andphysical conditionof the vessel. Afterthe inspectionand
conformationandphysical conditionof the vessel companyopenthe LCwithBankfor payment,after
conformationof paymentvessel beachatgadani shipbreakingyard.
Clearance from GovernmentDepartment
Before startinganyoperationactivityonthe vessel companyrequire clearance fromdifferentGovt.
departmentSuchas Custom (FBR),BaluchistanDevelopmentAuthority (BDA), Pakistan
TelecommunicationAuthority(PTA) andEnvironmentalProtectionAgency (EPA)etc.
Afterthe beachof vessel custom,EPA and PTA inspectorcomeswiththeirinspectionteamandcustom
the vessel tolistdownthe spare parts andequipmenttocalculate andapplyimportduty.Theyissue a
latterto company to submitpayorderwithin20 daysafterthe beach of vessel toissue cutting
permissionletter.
Once get cuttingpermission fromcustomcompanysubmitthe copyof thatlatterwithvessel’s
documentcopy and BDA tonnage fee tothe BDA Office andgetthe NOCfrom them.
Oil cleaning& RemovingSpare parts (ferrousand nonferrousItems)
Theyfirststart Oil cleaningfromvessel afterthe clearance fromthe Govt.department.SuchasDiesel,
Mobile Oil,ChamberOil,Furnace andSludge Oil etc.

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Theyget off the spare parts, Kitchenitems,store,andworkshopfromshiptoopenfurniture andfixture
Cables,Motor,pumpsand all ferrousandnonferrousitemssuchas steel,copperbrassandpipesetc.
Cutting
WhenOil cleaningprocesscompleted andall the equipment getoff cuttingwithnaal orBottomof the
shipand stepbystepremove the tanksand bottomsandmake space to remove generatorof the vessel
whentheyreach at the engine roomtheyremove engineandthe lasttheyremove propellerof the
vessel.
3) List down main external and internal customers and suppliers related to the
organization.
External Supplier
Raw Material

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The main raw material thatuse forcuttingof shipisLPG andOxygen. LPGprovidedby PARCOand
Oxygenprovidedby LINDEPAKISTAN and GHANI GASESetc.
EngineeringService
Engineeringservicesuse forrepairingof equipmentsuchaswench, cuppy,lifter,crane andgas cutter
etc.
AL- Moin Engineering
Khanworkshop
AdnanEngineering
Wahab Gas cutter
ZahidEngineering
Internal Supplier

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Internal supplierare the laborof the organization.Shipweldercannotstarttheirworkbefore Oil Labor
not done theirwork.Kinaraweldercannotstartcuttingbefore shipweldersame asplotweldercannot
start cuttingbefore Kinaraweldersupplycuttingmaterial.
Internal Customer
Internal customerof the firmare company’sstaff and dailywageslabor of the organization.
Office staff
Store In charge
LoadingSupervisor
Watchman
DailywagesLabor
Welder
Helper
Forman
Lifteroperator
Crane Operator
Lohar

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External Customer
External customersare steel barmanufacturingcompanies,traders,brokers etc.
Associatedrollingmills
FaizanSteel
NewShalimar
Gull Badshah
Sameeryousf
Masood Farooq

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Question -2
Briefly describe each of the following (500-1000 words) Total Quality Management (TQM)
Factors:
1) Continuous Improvement
2) PDCA / Deming Wheel
3) Six Sigma
4) International Quality Documentation Standards
Continuous Improvement
Continuousimprovementisasthe name suggesta practice of constantlyre-examiningandimproving
processesbasedupon Japanese conceptkaizenthatmean(goodchange) makingchangesforthe better.
It’snot justany kindof improvementbutactuallysmall improvementforthe better.Kaizenis
incremental itssmall progressthatovertime amount’stoextraordinaryresult.
For Example:
A soapcompanywas facingcustomercomplainforreceivingemptysoapboxes.Sinceentireprocessof
soap makingisautomated.Simpleeffective kaizensolutionof keepingamancooler(industrial fan) at
the final stage of packingso that the emptyboxeswill flyandcustomercomplainwill be eliminated.
PDCA / Deming Wheel
PDCA cycle or DemingWheel isa continuousqualityimprovementmodelconsistingoutof logical
sequence of fourrepetitivestepsforimprovementandlearning:Plan,Do,Check(Study) andAct.
For Example:
Your customersatisfactionscore hasdecline onthe website.Customerare complainingaboutlate
delivery andproductare beingdamage intransit.
You decide torun a small pilotprojectfora monthusinga new suppliertodeliveryourproducttoa
small sample of yourcustomer.The feedbackfromthese customerispositive.Asaresultyoudecide to
use the newsupplierforall yourorders.
What youhave just done isto go once arounda loopcalledthe PDCA cycle,whichhelpsyoutostrive for
continuousimprovementtoyourbusiness
Six Sigma

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Six sigmais a qualityimprovement,problemsolvingtool orsimply aimprovementmethodologyfor
manufacturingprocessaswell asadministrative andservice applicationsthathelpus tofocuson
developinganddelivering nearperfectproductsandservice.
It was introducedbyengineerBillSmithwhile workingatMotorolain1986 in response toreduce
productfrailerlevel.
Six sigmaisnamedaftera statistical conceptwhere aprocess onlyproduce 3.4 defectspermillion
opportunities.
Six sigmatherefore be alsothoughtof asa goal,where processesnotonlyencounterlessdefect,but do
so consistently(Lowvariability).
Sigma Level DefectsPer Million Yield
6 3.4 99.99966%
5 230 99.977%
4 6,210 99.38%
3 66,800 93.32%
2 308,000 69.15%
1 690,000 30.85%

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How Six Sigma Works
Six SigmaStrategiesseektoimprove the qualityof the outputof a processbyidentifyingandremoving
the causesof defectandminimizingvariability inmanufacturingandbusinessprocesses.
It usesa setof qualitymanagementmethods,mainlyempirical,statistical methods,andcreatesaspecial
infrastructure of people withinthe organizationwhoare expertsinthese methods.
Each six sigmaprojectcarriedout withinanorganizationfollowsadefinedsequenceof stepsandhas
specificvalue targets.
For Example:Reduce processcycle time,reduce pollution,reducecost,increase customersatisfaction,
and increase profit.
Six Sigma Methodologies
DMAIC: It referstoa data drivenqualitystrategyforimprovingprocesses.Thismethodologyisusedto
improve anexistingbusinessprocess.
DMADV: It refersto a data-drivenqualitystrategyfordesigningproductandprocesses.This
methodologyusedtocreate newproductdesignsorprocessdesignsinsuchawaythat it resultina
more predictable,mature defect free performance.

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Advantages
Seta performance goal foreveryone
Enhancesvalue tocustomer
Acceleratesthe rate of improvement
Promoteslearningacrossteam
Executesstrategicchange
Minimize the processvariability
Improve the reliabilityof productandservices.
International Quality Documentation Standards
If your businesshasmanyspecificpolicies,procedures,processesandguidelines,itisbesttodocument
theminway that easyto understandforbothinternal employee andexternal regulators.The
international organizationforstandards,orISOhas developedaseriesof standardsonhow to create
documentsthatensure quality,efficiencyandsafetyinthe workplace throughaqualitymanagement
system.Use the ISO 9000 seriesto create documentsinyourorganizationthatmeetregulatory
standards.

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Understandingthe needfor ISO Documentation standards
ISO9000 seriesisnotspecifictoone industry,sobusinessneedtounderstandthe regulationandapply
whatrelevanttotheirbusiness.
The goals of creatingdocumentationthatabidesbyISOstandardsinclude:
Meetingindustryregulatoryrequirements.
Offeringhighqualityproductsandservices.
Continuallyimprovingthe efficiencyof processes.
Satisfyingthe needsof customers.
Ensuring ISO Documentationstandards are met
There are manydifferenttypesof documentationthatare requiredinordertomaintainanefficient
qualitymanagementsystem.Tomaintain ISOstandards,yourbusinessdocumentationneedstoinclude:
Qualitypolicyandqualityobjective.
Qualitymanual.
Documentprocedures.
Planning,Operationandcontrol documentsforinternal processes.
Records.
It isimportantto note that writingdownaprocedure forthe qualitymanagementsystemisn’tenough.
ISOrequire thatthe procedure alsohasto be implementedandmaintained.

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