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COR / Q / CM / 001                ISSUE 5                 APRIL 2002

                               ITI LIMITED
                     REGISTERED & CORPORATE OFFICE
                         ITI BHAVAN, BANGALORE
                            BANGALORE 560 025


                       CONTENTS SHEET

   SECTION                  SECTION TITLE
   0                   Amendment Record Sheet
   0                   Chairman’s Statement of Approval
   0                   Revision History of the Company Quality Manual
   1                   Profile of the Company
   2                   Scope of the Manual
   3                   Administration of the Manual
   4                   Quality Management System
   5                   Management Responsibility
   6                   Resource Management
   7                   Product Realization
   8                   Measurement, Analysis and Improvement
                                    SECTION 0

                     AMENDMENT RECORD SHEET

Amendment        Section No. &    Details of Amendments*                       Signature
No. / Date       Clause No.
1/12-08-2002     -                Content sheet is revised to include
                                  Amendment Record Sheet, Chairman‟s
                                  Statement of Approval, Revision
                                  History of the Company Quality Manual
                                  as Section “0” and placed in that order.
1/12-08-2002     Section 3,       The clauses are rewritten and rearranged
                 Clause No.       to bring clarity
                 3.4.2, 3.4.3,
                 3.4.6 and 3.7

Note : i) * Please indicate in this column, the amended word / line / sentence / text as
       given in amendment sheet with in the comma “------------” In case entire page
       is replaced please indicate the page No. and revision No.

       ii) For revision details of previous issues please see the revision history of the
       Company Quality Manual.
                                SECTION O

                   Chairman‟s Statement of Approval

The Company Quality Manual No. COR/Q/CM / 001 issue 5, prepared in line with the
requirements of the International Quality Management System Standard ISO 9001:2000,
replaces issue 4 of the Manual. The Manual reflects the Management‟s Intentions,
Commitment and Direction with regard to Quality of the product and services offered by the
Company to the Customers.

We have to update our Quality Management System in tune with the new requirement, as
implementation of ISO 9001:2000 is perceived as our next milestone in Company‟s journey
through Total Quality Management (TQM).

I hereby approve the Manual for implementation in the Company. Implementation of the
Manual is mandatory for all manufacturing plants and other service units of the Company.

The Head of Corporate Quality Management is authorised to monitor the implementation of
the Manual and give periodic feed back to the undersigned on its effectiveness.

                                                (Lakshmi G. Menon)
       Bangalore                           Chairman & Managing Director
       Date: 23 April, 2002                         ITI Limited
                                           SECTION 0


i.       Quality Manual was first brought out in the Company during March 1980, as Issue
         No. 1.
ii.      Quality Manual, issue No. 1 was revised and brought out as Issue No. 2 during June
         1982, This revision was based on the input given by Mr. A.K. Muller, the West
         Germany expert on Quality Management, recommended by the World Bank.
iii.     The Quality manual was rewritten to align with the requirements of ISO 9001 : 1987
         Standard and brought out as Company Quality Manual, No. COR / Q / CM / 001,
         Issue No. 1 during September 1992.
iv.      The Company Quality Manual, No. COR / Q / CM / 001 Issue No. 1 was revised
         based on the feedback from the Units, Certification agencies and own experience and
         issued as Issue No. 2 during March 1993.
v.       The Company Quality Manual, No. COR / Q / CM / 001 Issue No. 2 was revised to
         incorporate the requirements of ISO 9001 : 1994 Standard and brought out as Issue
         No. 3 during April 1995.
vi.      The Company Quality Manual No. COR / Q / CM / 001, Issue No. 3 was again
         revised based on the feedback from the Units, Certifying agencies and own
         experience and brought out as Issue No. 4 during January 1996.
vii.     The current issue of the Manual prepared based on the requirements of ISO 9001 :
         2000 and brought out as Issue No. 5, during April 2002.


          We invite your comments / feedback / suggestions to improve this Manual.
                                 Please address it to the

       Corporate Quality Management; ITI Bhavan; Dooravaninagar; Bangalore - 560 016

                              FAX No. : +91 - 80 - 5613785

                              E-Mail :
                                             SECTION – 1

                                  PROFILE OF THE COMPANY

ITI Limited is the premier Public Sector Undertaking of the Country, established in the year
1948 with Registered and Corporate Office located at Bangalore and is the largest telecom
company in the country. From a small beginning, it has grown into a mammoth Multi Unit
Enterprise with state-of-the-art manufacturing Plants located at Dooravaninagar and
Electronics City in Bangalore in the State of Karnataka, Mankapur, Naini and Rae Bareli in
the State of Uttar Pradesh, Palakkad in the State of Kerala and Srinagar in the State of Jammu
& Kashmir.

In addition to these manufacturing Plants, the Company has Network Systems Unit located at
Bangalore for undertaking installation and maintenance of telecommunication equipments,
throughout the country. The Company has a network of Sales and Service Offices
comprising Regional Offices located at Bangalore, Chennai, Kolkata, Lucknow, Delhi,
Mumbai, Bhubaneshwar, Hyderabad, Bhopal and Ahmedabad and a number of sub-offices
under each region to represent the company in every significant town. In order to provide
prompt repair services to the customers, the Company has established Regional Repair
Centres at Bangalore and Lucknow. Enriched with the experience of pioneering telecom
infrastructure for over half a century, the company offers leading edge state-of-the-art
technologies through strong in house R&D and select collaborations, strategic alliances and
joint ventures. The main R & D centres are located at Bangalore and Naini.

The R & D is engaged in continuous innovation and development to meet ever-demanding
customer requirements and is facilitated by state-of-the art design aids. Continuous up-
gradation of technology is the key to satisfy changing needs of the customers on

The company is dealing with diverse technologies, continuously phasing out old technologies
and phasing in new technologies.

In order to update the technology and to meet emerging needs of our
customers, the company has technology collaboration / alliance with reputed
telecommunication giants. Prominent among the collaborators are Alcatel of France for large
Digital Switches, NERA of Norway, Bosch of Germany and NEC of Japan for Digital
Microwave equipments. Tel labs of Denmark for Fibre Optic Communication Systems,
Lucent Technologies of USA for GSM mobile

communication systems and ASCOM of Switzerland for Switch Mode Power Supply. The
centre for Development of Telematics (C-DoT) has provided indigenous technologies for
Rural Automatic Exchanges (RAX) and Main Automatic Exchanges of medium and large

ITI has whole range of telecom products starting from simple telephone
instrument   to    the   state-of-the-art digital switching   system,  transmission
systems like Satellite communications and optical communication equipments, Mobile
Communication systems, meeting the requirements of                   the   Department   of
Telecommunication, Railways and other telecom service providers.

Besides meeting the civilian communication requirements, company also manufactures a
wide range of ruggedized telecom products for Defence and paramilitary needs. ITI also
provides                customized         networks                for            special
application of Defence, Railways, Power sectors, Oil sectors, Steel sectors and Police &
internal security requirements.

ITI‟s contribution to the National Telecom Network is over 70 percent.


                                     SECTION – 2

                            SCOPE OF THE MANUAL
                                                                   ISO 9001 – CL No. 4.2.2

This manual prepared in line with all the requirements of ISO 9001: 2000, is
applicable to all manufacturing plants and service units of the company and shall be
complied with. However, in case if any of the plants / units find that some of the
requirements are not applicable, such requirements may be excluded from their
Quality Management System with justification but it shall not affect the plant‟s /
unit‟s ability or responsibility to provide product that fulfill customers‟ and applicable
regulatory requirements. Such exclusions shall be limited to the requirements of
clause No. 7 of ISO 9001: 2000 or section 7 of this manual.

The Manufacturing Plants and Service Units are hereinafter referred commonly as
Units in the Manual. The units which do not have any in-house design facility, but
manufactures products and / or provides services based on the bought out technology
and are responsible for the Quality of the design / answerable to the customers for any
design deficiency and not the collaborator, such units shall not exclude the
requirements of clause No. 7.3 on design & development of ISO 9001: 2000 and they
shall clearly define either in the supplement to this manual or process document how
exactly design quality is ensured while entering in to collaboration and how the design
deficiency reported by the customer is resolved. Such units may consider design and
development activity / process as out sourced process and ensure control over it.

Plants may exclude Clause No. 7.3 on Design and Development in case the Plant is
totally not responsible for answering to the customers on design deficiency, like
Srinagar Plant where in customer complaints on design deficiencies if any are being
answered by the R&Ds located at Naini and Bangalore.
The units which do not handle any customers property with in their premises may
exclude requirements of clause No. 7.5.4 on Customer Property of ISO 9001: 2000.
However, they shall not exclude the requirements of the clause No. 7.5.4 if customer
returned cards / equipments for repair / service are being handled with in their

The scope of the Unit Quality Management System with exclusions including out
sourced processes if any shall be defined in the Unit Supplement to The Company
Quality Manual.


                                     SECTION – 3


                                                                  ISO 9001 – CL No. 4.2.3

       To establish procedure for preparation, distribution and control of the Company
       Quality Manual.

       The section deals with the preparation, review, distribution, approval, amendment and
       revision of the Company Quality Manual.

3.3.1 The Company Quality Manual here after termed as the Manual is prepared with the
      intention to meet the requirements of the International Quality Management System
      Standard: ISO 9001 : 2000 and work towards the Company Quality Policy.
3.3.2 The Manual describes the quality system of the company, in addition meeting the
      requirements of ISO 9001 : 2000, Quality Cost is also included as a guide for
      continual improvement. Numbers within the flower brackets, given at the end of Sub
      headings corresponds to the relevant clause Nos. of ISO 9001 : 2000.
3.3.3 The Manual shall be revised consequent upon changes in the ISO 9001: 2000
      standard, change in quality policy / objectives and change in organization. Revision
      may also take place due to new developments, standardization activities, advancement
      of technology, changes in procedures or code of practicesand feedback from Units /
      Certification bodies.
3.3.4 The entire Manual shall be reviewed once in five years to determine and ensure its
      continued suitability.
3.3.5 If required by the contract with a customer, each amendment / revision shall be
      communicated to them. The certifying bodies may also be informed about the
      amendments / revisions.

3.4.1 The Head of Corporate Quality Management shall be responsible and authorized for
      the preparation, review, issue amendments, revisions and distribution of the Manual.
3.4.2 The Chairman and Managing Director (CMD) has the authority to approve the
      Manual before its release for implementation.
3.4.3 The Head of Corporate Quality Management has the authority to approve
      amendments or revisions of the manual.
3.4.4 The amendments or revisions affecting the policies and objectives of the Company
      shall need the approval of the CMD before issue.

3.4.5 The Head of Corporate Quality Management has the authority to monitor the
      implementation of Quality Management system defined in the Manual and give
      feedback to the CMD.
3.4.6 The holder of controlled copy of the Manual is authorized to incorporate amendments
      in the Manual based on the amendments issued by the Corporate Quality

3.5.1 A committee under the Quality System Group of Corporate Quality Management,
      shall prepare draft manual. The draft manual shall be circulated to all plants for their
      feedback / comments. The committee shall review the draft along with the feedback /
      comments received and prepare a final draft. The final draft shall then be put up to the
      CMD for approval and formally released.
3.5.2 The Quality System Group shall review the manual as in Clause 3.3.3 & 3.3.4 and
      prepare amendment or revise the manual if required. Before issue of amendment or
      release of the revised manual, approval shall be obtained from the competent
      authority as in clause 3.4.
3.5.3 Whenever the Manual is revised and reissued, it shall be given next or subsequent
      issue number.
3.5.4 The entire Manual shall be revised, in case too many amendments have been effected
      or major changes have been enforced due to policy decisions.
3.5.5 All amendments shall be done through amendment sheets indicating section no.,
      clause no., details of changes, date and authorized signature.
3.5.6 All amendments shall be identified by a unique number. The revision Nos. of the page
      / pages effected by the amendments shall be advanced by „1‟.

3.6.1 The Manual shall be distributed within the organization as per the approved
      distribution list, in controlled modes through the Chiefs of Unit Quality Assurance /
      Management Representatives.
3.6.2 Each distributed copy is identified by a number, name and designation / function of
      the holder.
3.6.3 Uncontrolled copies are issued for general information and commercial purposes,
      primarily to outside agencies clearly indicating their status at the time of distribution.
      A Manual with uncontrolled status has no contractual binding on the Company.
3.6.4 Separate records and sequential numbers shall be maintained for both controlled and
      uncontrolled copies.
3.6.5 All    amendments shall be distributed to all controlled copy holders as per the
      distribution list through the Chiefs of Unit Quality Assurance / Management
3.6.6    New issue of the Manual shall be distributed as in clause No. 3.6.1 above, to all the
        holders of controlled copy of the manual or as per the revised distribution list. Once
        the new issue is released, old or previous issue of the manual becomes obsolete and
        shall be withdrawn.

        Controlled copy holders of the Manual shall record the amendments in the
        Amendment record sheets provided in the beginning of the manual with signature and
        date and incorporate the amendments in the manual by replacing the corresponding
        sheet / sheets with revised sheet / sheets. The copy of the amendment sheets received
        shall be maintained by the holder of the manual separately.

                                               ****

                                       SECTION – 4
                      QUALITY MANAGEMENT SYSTEM

                                                                     ISO 9001 – CL No. 4

        To establish and describe the Quality Management System of the company.
      This section covers brief description of the Quality Management System, Quality
      Management System documentation, control of documents and control of records.

4.3 GENERAL {4.1}
      The Quality Management System (QMS) is established and implemented to
      continually improve the company‟s performance with regard to quality of products
      and services offered to the customers and enhance customer satisfaction. The QMS is
      guided by the following eight quality management principles :

     a)   Customer focus;
     b)   Leadership;
     c)   Involvement of people;
     d)   Process approach;
     e)   System approach to management;
     f)   Continual improvement;
     g)   Factual approach to decision making;
     h)   Mutually beneficial supplier relationship.
      Entire operation of the company is managed as numerous inter-linked activities.
      Process management concept is adopted to these activities for its effective
      management. These processes are grouped as Management Processes, Resource
      Management Processes, Product Realization Processes and Measurement and
      Analysis Processes.
4.3.1 Management Processes
      The Management Processes comprise:

       i) Identifying and meeting customer needs with the aim of enhancing customer
      ii) Identifying and defining processes needed for effective and efficient performance
          of the company, including their sequences and interaction;
    iii) Defining criteria and methods needed to ensure that both operation and control of
          the above process are effective;
     iv) Identifying and defining processes to be out sourced to meet the Company‟s
          objectives and control to be exercised on it.
      v) Establishing quality policy at Company level and quality objectives at Company,
          Unit, Division and all Process levels;
     vi) QMS planning to meet the quality objectives;
    vii) Defining responsibility and authority of personnel at various levels in order to
          achieve the quality objectives;
   viii) Establishing internal communication process on effectiveness of the QMS;
     ix) Using the results of analysis of data for directing continual improvement;
      x) Establishing suitable improvement processes and its continuous evaluation;
     xi) Management review on QMS to ensure its suitability, adequacy and effectiveness
         and identifying opportunities for improvement.
4.3.2 Resource management processes
      Resource Management Processes comprise determining and providing resources such
      as human resources, infrastructure and work environment needed to implement and
      maintain QMS, continually improve its effectiveness and achieve desired customer
      satisfaction level.
4.3.3 Product realization processes
      Product Realization Processes comprise :

       i)   Determining customer requirements and its review;
      ii)   Design and development process;
     iii)   Purchasing process;
     iv)    Production and service provision process;
      v)    Control of monitoring and measuring devices.
4.3.4 Measurement and analysis processes
      Measurement and Analysis Processes comprise :

       i)   Measurement of customer satisfaction level;
      ii)   Internal audit;
     iii)   Monitoring and measurement of processes and products;
     iv)    Control of nonconforming products;
      v)    Analysis of data.
4.3.5 Process levels
      The Company‟s operational and product realization processes are performed at
      Corporate and Unit levels.
      Corporate level processes are preparation of business plan and growth plan, company
      level policies and objectives, production plans & targets, marketing, product
      identification and project planning, mobilizing and controlling resources, monitoring
      of production & service provisions and its quality.
      Unit level processes are preparation of unit level plans and targets, identification of
      products, marketing to a limited extent, resource management including finance in
      consistence with the Corporate directives, establishing unit level objectives,
      identifying, defining and implementation of product realization and support processes
      including its improvement. The unit level objectives are defined in the Unit
      Supplement to this manual.
      Next level processes are defined and documented by the process owners defined in
      this manual and Unit Supplements.
      A typical product realization process map along with support processes showing
      interaction between processes and applicable ISO 9001 clauses are given in Annexure
      IA and IB respectively.
      Corporate Functional Heads and Unit Heads are responsible for identifying the
      processes needed for efficient and effective performance of the Company.
      Authority and responsibility for preparation and approval of quality system
      documents are given in the table at Annexure IC and for other documents as given in
      the system procedures issued by the Units.

      The Quality Management System is documented and structured as follows:

       i)   Documented statement of quality policy;
      ii)   Documented statement of quality objectives;
     iii)   Company Quality Manual and Unit Supplements to it;
     iv)    System procedures on :
            a) Control of documents;
            b) Control of records;
            c) Internal audit;
            d) Control of nonconforming products;
            e) Corrective action;
            f) Preventive action;

     v) Process documents to ensure effective planning, operation and control of
    vi) Work Procedures / Work Instructions;
    vii) Records to be maintained.

4.5.1 Company Quality Manual {4.2.2}
      The Company Quality Manual that describes the Quality Management System of the
      Company, is prepared in line with the requirement of ISO 9001 : 2000. Preparation,
      review and control of the manual is described in section 3 on Administration of the
      manual. The manual shall be supported by Unit Supplements to describe completely
      the Quality Management System of the unit.
4.5.2 Unit Supplement to the Company Quality Manual
      Unit Supplement to the Company Quality Manual shall be prepared covering the
      following :

       i) Administration of the Unit Supplement;
      ii) Statement of acceptance of the Company Quality Manual by the Unit Head;
     iii) The Unit profile;
      iv) Scope of the Quality Management System including details of exclusions /
          deviations from the Standard / Company Quality Manual with justification and out
          sourced processes, if any;
       v) Quality objectives of the unit;
      vi) List of identified processes needed for implementation of the Quality Management
          System, including out sourced processes and process owners;
     vii) Interactions between the processes;
    viii) Authority and responsibility of process owners / functional heads including
          organization structure and internal communication processes;
      ix) Nomination of Management Representative (MR);
       x) Formation of Management Review Committee;
      xi) Reference to system procedures and other process documents / quality plans;
     xii) Reference to procedures for measurement of customer satisfaction;
    xiii) Reference to the procedure for collection of performance data on processes,
          products and services and cost of quality and its analysis;
    xiv) Criteria and methods employed for use of results of analysis for continual
          improvements of processes.
4.5.3 System procedure
       Each Unit shall prepare system procedures in line with the requirement of the
       Standard for each process defined in clause No. 4.5 (iv) of the Manual.
4.5.4 Process documents
       For each process / function / department, process document / procedure shall be
       prepared covering :

       i)   Measurable process objectives and targets for each objective;
      ii)   Process owners who have the authority and responsibility for the processes;
    iii)    Human resources needed including competence required;
     iv)    Infrastructure and work environment;
      v)    Identification of internal and external suppliers and customers;
     vi)    Process inputs and outputs;
    vii)    Identification of interactions with all other related processes, suppliers and
    viii)   Actual process covering criteria and methods employed for effective operation of
            process including equipment, production aids, fixtures, gauges, monitoring and
            measuring devices. This may be either in text form or in the form of flow chart;
     ix)    Identification of monitoring and measurement requirements to ensure the quality
            of input, output and to control the process to enable achievement of the objectives
            and to ensure continual improvement;
      x)    Control of monitoring and measuring devices, where applicable;
     xi)    Handling and preservation of products, where applicable;
    xii)    Data to be collected / records to be maintained;
      xiii) Analysis of data to arrive at customer satisfaction level, conformance of the
            product / service to the specified requirements and process trends, identifying
            opportunities for corrective and preventive actions and continual improvement;
      xiv) Analysis of supplier / vendor performance or vendor rating where applicable;
       xv) Review of process performance viz-a-vis objectives and also review of objective
            itself with a view to refix the targets and continually improve it.
4.5.5 Work Procedures / Instructions

        Work Procedures / Instructions shall be prepared and issued for the work where its
        absence affects the quality of the product / service. The respective sub-process
        owners are responsible for preparation and issue of work procedures / instructions.
        The work procedure / instructions describe the activities in sequence and make
        reference to applicable documents if any, tools, fixtures, instruments, equipment and
        precautions, if any, to be observed and records to be maintained.

4.6     CONTROL OF DOCUMENTS {4.2.3}
         All documents including Quality Management System shall be controlled to ensure its
         adequacy for the purpose and shall be approved by authorized personnel prior to
         issue. The control shall ensure that:
         i) All documents have title, control or identification no., issue no., revision status,
             approval for its adequacy and are legible and free from any ambiguity;
        ii) The documents are reviewed whenever need for change is felt;
       iii) All revisions or updations resulting on review are approved by authorized
             personnel identified by appropriate issue No. or revision No.;
       iv) Distribution of documents is controlled to ensure that only appropriate documents
             of relevant revision status or issue status are available at all points of use;
        v) If any obsolete documents are retained for any specific purpose, they are suitably
             identified and controlled to prevent its unintended use;
       vi) The documents of external origin are also suitably identified and its distribution is

        The media of documents are paper, magnetic, electronic, optical, computer disc,
        photograph, master sample or a combination thereof. If the documents are
        maintained in soft form like magnetic / electronic / optical media, appropriate
        additional controls are exercised to prevent modifications / change / updation /
        copying by unauthorized personnel. The details of controls including authority and
        responsibility exercised are given in the System procedure on “Control of

     Records, which provide evidence of conformity to the specified requirements and
     effective operation of the QMS shall be maintained and controlled. The control shall

      i)   Identification of records;
     ii)   Ensuring legibility;
    iii)   Storage for easy retrieval and protection from deterioration or damage;
    iv)    Retention period and disposal after the expiry of retention period.
     The media of records are in any form as in the case of documents. Details of controls
     to be exercised are given in the System procedure on “Control of Records”.


                                      ANNEXURE - I A

     Typical Product Realization Process Map with Support Processes

  Marketing and              R & D (2)               Engineering              Production
    Sales (1)                                        Services (3)             Planning 4)

   QA / Customer             Production and service provisions –         Purchasing (5)
   Acceptance (7)               Manufacturing / Assembly /
                                 Inspection and Testing (6)

    Packing and                    Customer (9)                After Sales
    Shipping (8)                                               Support (9)

                                     MAIN PROCESSES

           Document              HRD (ii)            Plant – Civil,          Information
           Control (i)                                Elec. And              Services (iv)
                                                      Mech. (iii)
               (i), (ii), (iii) and (iv) are Common Support Processes have interactions with all
               the Main Processes

         Calibration                Vendor Dev.                 Component                     Reliability
         (v)                        & Vendor                   Approval (vii)                 Lab (viii)
                                    Rating (vi)

                Processes (v), (vi), (vii) & (viii) have interactions with 2, 6 & 7 of the Main Process,

               Processes (vi) & (vii) have interaction with Purchase and Production Planning
               processes also

                                        SUPPORT PROCESSES
        (1)             Indicated process flow and supplier / customer chain
        (2)             Each of the above processes may be broken-down to next level or next to
                        next level processes depending on operational convenience.
        (3)             Customers requirements and feedback received are the inputs to Marketing /
                        Sales processes

                                            ANNEXURE – I B


a) Main Processes

   Sl. No. Process                         Applicable ISO 9001:             Interacting Processes
                                           2000 Clauses
   1.         Marketing & Sales            5.2, 7.2, 7.5.1, 7.5.2,          R & D, Engg. Services,
                                           7.5.4, 8.2.1                     Planning, Production /
                                                                            Service Provision,
                                                                            Packing & Shipping, QA,
                                                                            After Sales
   2.         R&D                          5.2, 7.2.1, 7.2.2, 7.3,          Marketing, Engg.
                                           7.5.3, 7.6, 8.2.4                Services, Production /
                                                                            Service Provision, QA
   3.         Engg. Services               7.2, 7.3.6, 7.3.7, 7.4,          R & D, Marketing,
                                           7.5.4, 8.2.1                     Planning, QA, Production
                                                                            / Service Provision and
                                                                            Document Control
   4.         Production Planning          7.2.2, 7.4, 7.5                  R & D, Marketing, Engg.
                                                                            Services, Purchase, IGI,
                                                                            Production / Service
                                                                            Provision, QA, Packing &
   5.      Purchasing                 7.4, 8.3, 8.4 (d)            Finance, Planning,
                                                                   Production / Service
                                                                   Provision, QA, R & D
   6.      Production &               5.2, 7.1, 7.4.3, 7.5, 7.6,   Planning, Purchase,
           Service Provision          8.2.3, 8.2.4, 8.3            marketing, Engg.
           (Mfg. / Assy. / Insp.                                   Services, Manufacturing,
           & Test)                                                 Methods, QA
   7.      QA / Customer              5.2, 5.6, 7.1, 7.2, 7.3.6,   Marketing, R & D, Engg.
           Acceptance                 7.3.7, 7.4.3, 7.5.3,         Services, Production /
                                      7.5.5, 7.6, 8.1, 8.2.1,      Service Provision,
                                      8.2.4, 8.3                   Packing / Shipping,
   8.      Packing &                  7.2.1, 7.5.1, 7.5.3, 7.5.5   QA, R & D, Production /
           Shipping                                                Service Provision
   9.      After Sales Support        7.2.1, 7.5.1, 7.5.3,         R & D, Engg. Services,
                                      7.5.4, 7.5.5, 7.6, 8.2.1,    Planning, QA, Marketing
                                      8.2.4, 8.3

                                   ANNEXURE – I B (CONTD.)


b) Support Processes

   Sl. No. Process                    Applicable ISO 9001:         Interacting Processes
                                      2000 Clauses
   i.      Document Control           4.2.3                        All Processes / Functions

   ii.     HRD                        6.2                          All Processes / Functions

   iii.    Calibration                6.3, 7.6                     R & D, Production /
                                                                   Service Provision, QA,
                                                                   After Sales

   iv.     Information Services       5.3.3, 6.3, 7.2.3, 8.2.1,    All Processes / Functions

   v.      Plant - Civil,             6.3                          All Processes / Functions
           electrical & mech.

   vi.     Vendor Development         7.4, 7.5, 8.2.4              Purchasing and
       and Vendor Rating                              Production Planning

vii    Component Approval    7.3.3, 7.4, 8.2.4        Purchasing, R & D,
                                                      Production Planning

viii   Reliability Lab.      7.3, 7.4, 8.2.4          R & D, QA

                              ANNEXURE – I C


Sl. No. Documents            Responsibility for       Authority for Approval
                             Preparation / Revision
i.     Company Quality       Corporate Quality        Chairman & Managing
       Manual                Management               Director

ii.    Unit / Divisional     Management               Unit Head
       Supplement to the     Representative
       Company Quality

iii.   System Procedures     Management               Unit Head / Divisional
                             Representative           Head

iv.    Process Documents     Process Owners           Controlling Officer of the
                                                      Process Owners

v.     Work Instructions     Sub Process Owners       Process Owners

vi.    Formats for Records   Sub Process Owner /      Process Owner / Unit
                             process owner            Industrial Engg. /
                                                      Designated Authority
                                  SECTION – 5
                                                                   ISO 9001 – CL No. 5

     To enunciate commitment of the top management to the development and
     implementation of the Quality Management System and continually improve its

     This section covers determination of the customer requirements, establishing quality
     policy, objectives, quality planning, defining responsibility and authority, role of
     Management Representative, internal communication and Management Review.

     Leadership, commitment and active involvement of the top management are the
     essence of effective and efficient Quality Management System (QMS) to derive
     benefits to the company and enhance customer satisfaction level. Management
     commitment is seen through Company‟s Vision / Mission statement, Policies and
     Strategic Objectives which form a base for development of effective and efficient
     Quality Management System and its continual improvement. The Quality
     Management System, aiming to continually improve effectiveness and efficiency of
     the Company‟s performance shall define the authority and responsibility of the
     personnel to enable them to contribute in achieving the objectives through
     involvement, motivation and commitment.

    The top management‟s commitment in the company is evident through:
    a) Establishing vision / mission statement;
    b) Establishing company quality policy;
    c) Establishing quality objectives;
    d) Conducting periodic management reviews;
    e) Defining and communicating authority and responsibility;
    f) Ensuring availability of resources for implementing Quality Management System
       and its continual improvement;
    g) Promoting the importance of meeting the customers‟ and statutory / regulatory
       requirements throughout the company.
     In order to enhance customer satisfaction level, current and future needs and
     expectations of the present and potential customers as well as end users, such as key
     product characteristics, dependability with respect to conformity of the product to the
     requirements, delivery and after sales services and response time are determined
     through survey or sending questionnaire and obtaining feedback. Such needs are
     converted into customer requirements and communicated throughout the company for
     meeting the same with the aim of enhancing customer satisfaction level.

     Quality policy forms the part of the company‟s overall business plan and strategy.
     The quality policy is framed based on the future needs of the company for its success
     and desired degree of customer satisfaction level. It shows top management‟s
     commitment for Quality Management System and its continual improvement. It
     provides frame work for establishing Quality Objectives and its review.
     The Quality System Group under Corporate Quality Management prepares draft
     quality policy based on the decisions taken by Corporate Steering Committee for
     Quality or CMD‟s directives and feedback from the units.
     The draft policy is then circulated to all units for comments / suggestions. The draft
     policy is reviewed based on the suggestions / comments and final draft is put up to the
     steering committee for ratification.
     After ratification by the Steering Committee, the quality policy is formally released
     with the approval of the CMD. The quality policy is communicated throughtout the
     organizations by displaying it at strategic locations and through training the personnel.
     The quality policy is periodically reviewed by the Steering Committee for its
     continuing suitability in meeting the overall business plan and strategy. The review is
     also based on the performance and feedback from the customers. After the review,
     policy is revised if required in the same way as original issue of the policy as
     mentioned above.

     The company‟s quality policy and strategic plans provide a framework for setting
     quality objectives leading to improvement in its performance.
     Measurable quality objectives shall be established at company, unit, divisional,
     department and process levels. Targets for each measurable quality objective shall be
     fixed and reviewed for continual improvement.

     Each unit shall prepare Quality Management System plan, defining the processes
     needed to meet the Unit level quality objectives and targets. The Unit Head shall
     constitute a committee comprising Heads of Production, Marketing, QA, R&D /
     Engineering, any other function as appropriate and MR for preparing Quality
     Management System plan.
The plan shall be based on:

      a)   Business strategy / production plan;
      b)   Unit level objectives;
      c)   Customer needs and expectations;
      d)   Statutory and regulatory requirement if any;
      e)   Product and process performance data;
      f)   Previous experience
      g)   Improvement opportunities.

       The Quality Management System plan shall define the product realization and support
       processes and it shall cover:

        i) Process level objectives in consistent with the unit / divisional objectives;
       ii) Responsibility and authority for each process and its implementation;
      iii) Resources needed such as human resources, infrastructure, finance and work
      iv) Metrics for evaluating the achievement of unit‟s performance, product and process
           performance and performance improvements;
       v) Documentation required for process management including product quality plan,
           records / data collection methods, its analysis and use for continual improvement.
       The plan shall be reviewed periodically and / or whenever the quality objectives are
       revised. The integrity of the Quality Management System or requirements of the
       Standard shall be ensured whenever any change is made in the plan.

5.9.1 Authority and Responsibility {5.5.1}
       The Chairman and Managing Director (CMD) has the overall responsibility for the
       entire activities of the Company. The CMD has authority to define the Company‟s
       business plan / strategy, quality policy and objectives. The CMD has full authority to
       direct and control all activities to meet company‟s policies and objectives.
       The CMD sub delegates authority commensurate with the responsibility to the
       following Functional Heads at Corporate Office and Heads of Unit. The Corporate
       Functional Heads and Unit Heads are the overall process owners in their respective
       areas. The reporting structure is as shown in the Company level Organization Chart
       given at Annexure II. The Head of Corporate Finance is responsible for control of all financial matters of
        the Company, which include mobilization of financial resources and allocation of the
        same towards various operations carried out by the company. The Head of Research and Development (R&D) is responsible for Research and
        Development activities of the Company, to continuously upgrade the existing
        products with new technology and bring out new products in line with the customer
        needs and expectations. The Head of Production Operations and Coordination is responsible for planning and
        monitoring the Production Operations of the Company to ensure that the Company‟s
        targets are met. The Head of Projects & Planning is responsible for identifying new products to meet
        the Company‟s production plan, Company‟s planned growth, customers‟ expectations
        and formulate new projects for its implementation. The Head of Marketing (DoT customers and Business coordination) is responsible
       for marketing the Company‟s products to the Corporations under the Department of
       Telecom (DoT) in order to ensure that the projected target of the Company is
       achieved. The Head of the Marketing (Non-DOT customers and Export) is responsible for
        Marketing Company Products among Non-DOT customers and create export market
        and to ensure that customer‟s requirements are adequately defined and documented.
        The Head of Marketing is also responsible for Regional Sales and Service Offices,
        Customer Care Organizations, and Regional Repair Centres, Corporate Information
        System and Information Technology group. Heads of Units have full authority to plan, execute and control all activities of the
        Unit to meet the Unit level objectives in line with company policy, business plan,
        objectives and targets. The non exclusive responsibilities of the Heads of Units are:

        i)   Defining unit level objectives;
       ii)   Identifying and defining processes to realize the objectives;
     iii)    Defining process owners and their authority and responsibility;
      iv)    Nominating management representatives;
       v)    Conducting unit level management reviews;
      vi)    Review of resources needed and providing essential resources on time;
     vii)    Approval of Unit Supplement to the Company Quality Manual;
    viii)    Approval and Issue of System Procedures on.
             a) Control of documents;
             b) Control of records;
             c) Internal audit;
             d) Control of nonconforming products;
             e) Corrective action;
             f) Preventive action;
             g) Measurement of customer satisfaction or perception and its use for
                improving Customer perception;
             h) Traceability requirements;
             i) Vendor rating and its usage meeting the requirements specified in the
                Company Manual on Materials Management;
             j) Control of out sourced processes if any;
      ix) Establishing a system for capturing of Quality Cost data, its analysis and use for
          waste elimination and quality improvement;
       x) Participation in Corporate Steering Committee meetings on quality;
      xi) Defining authority for approval of positive recall requests and documenting it;
     xii) Defining authority and responsibility and arrangement for effective
          communication with customers as required in clause of this manual. The Head of Personnel and Administration is responsible for all activities related to
        human resources at Company level including recruitment, career planning, industrial
        relations and welfare. The Head of Human Resource Development is responsible for conducting and
        monitoring of HRD activities in the Company through intervention of training of
        executives in grade 5 and above, induction training of executives at Grade 2 level and
        also associating with Corporate P & A in formulation of human resource polices and
        Organizational Development interventions. The head of Corporate Quality Management is authorized to plan, direct, coordinate
       and monitor quality activities of the company to ensure that products or services
       offered meet the customer expectations. Further details are given at clause
5.9.2 Quality function Management
       In order to achieve quality objectives a balance of centralized and decentralized
       approach has been adopted for quality function management. In line with this
       approach, distinct quality organization exists both at Corporate and Unit levels. The
       Head of Corporate Quality Management, reports directly to the CMD and is on the
       same hierarchy level as other Corporate Functional Heads and Unit Heads.
       Head of Unit Quality Assurance reports directly to the Unit Head and is on the same
       hierarchy level as other functional heads in the units. The Head of Unit Quality
       Assurance who functionally reports to the Head of Corporate Quality Management, is
       authorized to plan, implement and monitor quality activities in the Unit and reports
       the quality status to Corporate Quality Management. Further details are given at
       clause No. Authority and Responsibility of Head of Corporate Quality Management
       The Head of Corporate Quality Management is authorized and responsible for :

        i) Compiling quality status reports including quality cost reports from all the Units
           and putting it up to Management, highlighting the areas of concern and giving
           feedback to the units;
       ii) Advising and guiding the Units for suitable corrective and preventive actions,
           based on the status report and customer feedback;
      iii) Providing necessary counsel to the Management on quality objectives, quality
           issues affecting business of the Company;

      iv) Fixing Company level quality targets for specific products in consultation with the
          Units and periodically reviewing to ensure achieving the set target and sustaining
       v) Standardization activity in the Company;
      vi) Vendor Development, Components Approval and Reliability Engineering. and
          coordination for Vendor Rating.
     vii) Identifying quality related training needs and organizing the same either directly
          or through Unit QA departments;
    viii) Initiation and propagation of Total Quality Management (TQM) concept in the
      ix) Organizing for inspection and testing of products for export or products which are
          not inspected by the customer‟s representative before its dispatch, in association
          with the Head of the Unit Quality Assurance. Authority and Responsibility of Heads of Unit Quality Assurance
      The Heads of Unit Quality Assurance are authorized and responsible for :

        i) Ensuring that Product Quality Plans are prepared and used;
       ii) Ensuring that quality targets are fixed at different stages of production / servicing
           and its monitoring through collection and analysis of inspection / test data,
           customer feedback and initiating suitable corrective measures to ensure that the
           targets are met;
     iii) Coordination with Corporate Quality Management to decide on specific quality
           programmes and their implementation in the Units;
      iv) Ensuring that only products that have successfully passed all inspection and
           testing stages are offered to the Customer Inspection or dispatched to the
       v) Coordination with Customer Inspection and providing necessary records as per the
           contract if any;
      vi) Associating with Corporate Quality Management for inspection of products for
           export or products which are not inspected by customer‟s representative before its
     vii) Presenting quality status and quality cost reports identifying opportunities for
           improvement to Unit Steering Committee for review;
    viii) Submission of quality status and quality cost reports to the Unit Head and
           Corporate Quality Management;
      ix) Implementation of directives issued by the Corporate Quality Management in the
       x) Conducting quality audits to ensure that all activities are carried out as per the
           Product Quality Plan, recommending to the Unit Head for stopping production in
           case of major deviations and reporting to Corporate Quality Management;
      xi) Identification of quality related training needs and organizing the training through
           Unit HRD or Corporate Quality Management;

     xii) Submission of reports on customer perception and major customer complaints
          which require actions at corporate level to Corporate Quality Management.
5.9.3 Management Representative {5.5.2} Company level
       Head of the Corporate Quality Management is the Management Representative (MR)
       at the Company level. The MR is responsible for :

        i) Establishing and maintaining Company Quality Manual including policy &
               objectives and other Company level Quality System documents;
       ii) Ensuring that all Units comply with the requirements specified in the Company
           Quality Manual;
     iii) Providing assistance and support to the Units in implementation of QMS and ISO
           9000 Certification;
      iv) Ensuring that processes needed for Quality Management System are established,
           implemented and maintained effectively, in coordination with Corporate
           Functional and Unit Heads;
       v) Organizing pre-assessment audit by Corporate Audit Team before the certification
           or re-certification audit of the Units by certification bodies;
      vi) Organizing special internal audits by Corporate Audit Team on request by the
           Unit or on Corporate Quality Management‟s own initiative or as directed by
     vii) Reporting on the performance of the Quality Management System to the CMD for
           review and seek directions for making improvement in the Quality Management
    viii) Promotion of customer‟s requirements through out the company;
      ix) To liaise with certifying bodies on matters relating to Quality Management
           System including certification of the Units;
       x) Convening Corporate Steering Committee meetings. Unit level
       Heads of Units shall nominate Management Representatives, whose authority and
       responsibilities are:

        i) Establishing Unit level quality system documents like Unit Supplement to the
           Company Quality Manual and system procedures in coordination with the head of
           Unit Quality Assurance, process owners and functional Heads;
       ii) Coordination with departmental heads / process owners to establish other Quality
           System Documents like Departmental Procedure / Process documents, Work
           Procedures / Work Instructions and Quality Plans;
      iii) Ensuring implementation, maintenance, reviewing and updating the Quality
           Management System;
      iv) Ensuring that periodic Internal Audits on effective implementation of QMS
           covering all functions and processes are carried out;

       v) Presenting brief reports on major observations of the internal audits to the Unit
          Steering Committee for review and taking decisions on improvements to be made;
      vi) Reporting to the top management of the unit / Unit Steering Committee on the
          performance of the Quality Management System through a report on targets set
          and current status and any need for its improvement;
        vii) Coordinating with certifying bodies for ISO 9001 certification and related
       viii) Ensuring promotion of awareness of customer‟s requirements throughout the Unit;
         ix) Convening Management Review meetings.

5.10     MANAGEMENT REVIEW {5.6}
5.10.1 Management Review Committees At Corporate level
          Corporate Steering Committee for quality is the apex body at the Company level to
          review all quality related activities.
          The Chairman and Managing Director is the Chairman of the Steering Committee and
          Chief of Corporate Quality Management is its Convener. All Corporate Functional
          Heads and Unit Heads are members of this Steering Committee. The Committee shall
          meet at least once in a year. At Unit level
          At Unit level, Unit Steering Committee for Quality is responsible for Management
          Review of all Quality related activities. The Unit Head is the Chairman of the
          Committee, the Unit Management Representative / Quality Chief is Convener and all
          Functional Heads of the unit are its Members. The Steering Committee shall meet at
          least once in three months. For the Organization‟s convenience the Head of the Unit
          may form next level of Management Review Committees in a multi divisional
          environment for effective review.
5.10.2 Review Process
          The Management Review Committee shall review Quality Management System to
          ensure its continuing suitability, adequacy and effectiveness in meeting the quality
          policy and objectives and assess opportunities for its improvement on continual basis.
          The Convener of the Management Review Committee shall collect data on points to
          be reviewed well in advance and circulate to the members to enable them to come
          prepared for effective review meeting.
          The input / points for the Management Review shall be:

          i)   Results of Internal Audit / External audit by the Certification Agency;
         ii)   Customer feedback;
        iii)   Process performance, product conformity and quality status;
        iv)    Status of corrective and preventive actions;
         v)    Status on follow up actions on decisions taken in the previous meetings;

         vi)   Planned changes that could affect the Quality Management System;
        vii)   Recommendations for improvement / preventive actions;
       viii)   Market related information and customer perceptions;
         ix)   Review and use of vendor performance data;
          x)   Quality cost data;
    xi) Objectives and achievements;
   xii) Resources needed including training requirements.
     The out put of the Management Review as decisions and actions to be taken shall be
     recorded in the form of minutes, which shall include :

    a) Improvements to be made to the Quality Management System and processes to
       enhance its effectiveness;
    b) Improvement to be made in the Product / service Quality to meet the customer
    c) Preventive actions to be taken;
    d) Additional resources needed in terms of human and infrastructure resources for
       effective operations;
    e) Training to be organized;
    d) Revised objectives and targets.

     The effectiveness of the Quality Management System in meeting the objectives and
     customer‟s requirements shall be reviewed at Top Management, Divisional,
     Departmental and Process level meetings. The results of review and decisions on
     actions for continual improvements are communicated to all concerned through
     minutes of meetings or circular or display in notice boards at strategic locations or
     briefing all concerned during the daily, weekly and monthly process performance /
     production review meetings.

                                           ****

          Head of

          Head of

          Head of

         Heads of

                        Bangalore Unit
          Head of       Electronic City Unit
         Project &
CMD      Planning       Network System Unit

          Head of       Palakkad Unit
         Corporate      Naini Unit
                        Rae Bareli Unit
          Head of
                        Mankapur Unit
           HRD          J & K Unit
          Head of       VLSI Unit

         Head of

          Head of
                                    SECTION – 6

                                                                      ISO 9001 – CL No. 6

      To determine and provide resources essential for implementation of business
      strategies including implementation, maintenance and continual improvement of the
      Quality Management System to achieve the set objectives and enhance customer
      satisfaction level.

      This section covers identification of human resources, infrastructure, work
      environment and its timely provision.

      Identification of resources and provision of essential resources on time, plays a vital
      role in achieving objectives, meeting the customer requirements and improving the
      company‟s performance.

      The functional heads / department heads / process owners are responsible for
      determining the resources including training needs essential for effective
      implementation of Quality Management System (QMS) and its continual
      improvement. The Top Management at the Company level and Unit heads at unit
      levels are responsible for review of the resource requirements and are authorized to
      provide essential resources on time. The Unit HRD is responsible for providing
      training to employees, junior management executives and customers, training under
      apprentice scheme and training related to skill up-gradation. Corporate HRD is
      responsible for training executives of middle & senior management level and
      induction training for new executives. The Corporate Quality Management is
      responsible for training on Quality related topics.

      Resources such as human resources, infrastructure and work environment apart from
      financial resources shall be determined and provided for meeting the company‟s
      objectives and targets and also to improve company‟s performance and enhance
      customer satisfaction level.

6.5.1 Human resources {6.2}
      Human resource requirements to meet the objectives and targets including production
      and service provisions are assessed on annual basis for all processes, identified in
      Quality Management System Plan.
      Competence required to perform each and every activity of the processes are
      determined and personnel are deployed with appropriate competence to ensure that
      processes are carried out efficiently and effectively. While determining the
      competence required, due consideration is also given to future needs of the company
      with regard to anticipated workforce and managerial succession needs and
      development of leadership skills.
      This is achieved through the following steps:

      a) Determination of competence and quantum of human resources required for each
         work / function and preparation of matrix for job versus competence required;
      b) Assessment of available employees‟ competence based on the educational
         qualification, training provided and skills/experience on the particular job and
         preparation of employee competence matrix;
      c) Bridging the gap between the requirements and available competence by transfer
         of personnel from the area where such competence exists or by providing training
         or by recruitment as appropriate. Effectiveness of such actions is evaluated and
         corrective measures are taken to ensure the required competence;
      d) Ensuring that personnel at all levels are aware of the importance and relevance of
         their work / function and how they contribute in meeting the objectives and
         customer satisfaction. This is achieved through training or briefing by process /
         sub-process owners.
      For every employee, record of competence, covering educational qualification,
      training imparted, experience and skill acquired shall be maintained. Access to such
      records, to all process / sub-process owners is ensured to take decision on deployment
      of the employees based on factual data.
6.5.2 Infrastructure {6.3}
      Infrastructure necessary for the product realization and meeting the customer
      requirements shall be identified and provided.
      The infrastructure includes plant, machinery, work space, tools, jigs, fixtures,
      equipments including software support services, utilities like power, water,
      intellectual property / information, communication, transport and data processing
      facilities. While determining the infrastructure requirement, due consideration is
      given to the objectives and targets, customer service requirements, conservation of
      natural resources, minimization of impact on the environment like pollution and
      Resources required for collection of data from various processes and customers and
      analysis of these data to convert into information for making factual decisions and
      innovation, shall also be identified and provided.

      Infrastructure requirements are generally identified at the project planning stage and
      provided during project implementation. Infrastructure is augmented, whenever
      production target is increased beyond the installed capacity or change in
      manufacturing technology.
      Suitable maintenance methods shall be developed and implemented to ensure that the
      infrastructure continues to meet the needs, covering periodic verification of
      infrastructure elements, the type and frequency of maintenance such as preventive
      maintenance based on its criticality and usage either through in-house resource or
      through annual maintenance contract.
6.5.3 Work Environment {6.4}
      Work environment required for ensuring product quality and improved performance is
      determined and provided.
      The work environment factors identified for improved performance are:

     a) Conducive work methods that enhance the involvement of people for continual
        improvement of processes;
     b) Safety guidance and use of protective equipments;
     c) Ergonomics of work place;
     d) Conditions such as heat, humidity, light, airflow, hygiene, cleanliness, noise,
        vibration and pollution;
     e) Use of electro static discharge protection devices;
     f) Protection of moisture sensitive components.

                                           ****

                                   SECTION – 7
                          PRODUCT REALIZATION

                                                                   ISO 9001 – CL No. 7

      To ensure effective and efficient operation of all processes involved in product
      realization and provision of services to meet customers‟ expectations.

      This section covers planning of realization processes, customer related processes,
      design and development process, purchasing process, production and service
      provision processes, identification and traceability, control of customer property,
      preservation of products and control of monitoring and measuring devices.
      Process is a sequence of activities involved in converting inputs into desired output.
      It is important to define the desired process outputs clearly and then identify the
      required inputs, resource required, activities involved in converting the input, control
      or monitoring points and parameters to be measured within the process to ensure that
      desired output is achieved. It is desirable to verify and validate the processes for its
      effectiveness and efficiency before putting it in to regular practice. The data collected
      during the monitoring and measurement shall help in making continual improvement
      of the processes. The entire product / service realization processes may involve many
      sub processes requiring networking of all such sub processes in which output of one
      process may become the input to other process. Continual improvement of process
      performance shall be the objective.

      The Heads of Corporate functions and Units are the overall process owners in their
      respective functions / units, whose authority and responsibility are given in clause No.
      5.9.1 of this manual. The overall process owners are authorized to identify next levels
      of processes and its owners and define their authority and responsibility in the process
      documents / Unit Supplements. The process owners are responsible and authorized to
      plan, execute, control and review the processes and ensure continual improvement in
      the process performance.

7.5.1 Planning of product realization {7.1}
      Processes shall be planned in consistence with requirements of Quality Management
      System (QMS).
      Processes and sub processes including processes to be out sourced, needed for product
      / service realization shall be planned and developed by the process owners for its
      effective and efficient operation and suitably documented to the extent necessary.
      Following shall be the steps of process planning and development:

      a) Defining the process objectives and targets in consistence with the unit / divisional
         objectives and concurred by the QMS planning committee as in Clause 5.8 of this
         Manual and finalized by the Product Quality Committee;
      b) Listing the process inputs such as specifications, drawings, materials /
         components, intellectual information, customer requirements / order and
      c) Determining resources required such as competent personnel, infrastructure and
         service and maintenance including safety / protective equipment;
      d) Listing down the activities in sequence, identifying the interaction between the
         activities within the processes and with external processes. Reference to the
         documents such as work instructions, methods documents or procedures
         wherever applicable;
      e) Defining the product / service acceptance criteria based on the internal / external
         customer requirements / expectations;
      f) Defining the stages / points of verification, validation, monitoring, inspection and
         testing as applicable to optimize and / or ensure repeatability of the process and
         product / service quality;
      g) Identifying and defining the control / monitoring parameters to be monitored for
         effective operation of the processes;
      h) Identifying control / monitoring and measuring devices;
      i) Identifying the records to be maintained to provide evidence that the realization
         processes and resulting product meet the requirements;
      j) Mechanism for reviewing process performance vis-à-vis objectives and targets at
         pre defined intervals and deciding on improvement of performance and revising
         original targets for continual improvement.
7.5.2 Customer related processes {7.2}
       The customer related processes covers determination and review of customer
       requirements related to products and services to ensure that requirements are clear and
       capability exists to execute the order. The authority and responsibility for review shall
       be as follows:

       i) The Corporate Marketing Group for Department of Telecom (DoT) customers
          shall be responsible and authorized to review the requirements against tenders /
          orders floated / released by the headquarters of the corporations under DoT and
          submit quotations / convey order acceptance.
          The Corporate Marketing Group for non-DoT customers and exports shall be
          responsible and authorized for review the requirements against tenders / orders
          floated / released by customers other than corporations under DoT and submit
          quotations / convey order acceptance.
          In both the above cases, wherever necessary, services of the units or other
          corporate functions like R & D, Finance, Projects and Planning, Operations and
          Quality groups shall also be availed.

      ii) The Marketing groups located at the Units or Sales or Engineering Services or any
          other designated group as detailed in the Unit Supplement shall be responsible and
          authorized for review the requirements against tenders / orders floated / released
          by the local offices of the corporations under DoT and other customers and submit
          quotations / convey order acceptance.
          These groups shall also avail the services of other departments like R &
          D/Technical, Engineering, Finance, Production Planning, Manufacturing and
          Quality Assurance wherever necessary.

     iii) The officers in-charge of Regional Offices shall be responsible and authorized for
          review the tenders / orders floated / released by the customer with in the
          respective jurisdictional areas and submit quotations / order acceptance.
          Wherever required, concurrence of Corporate Marketing or Units shall be
          obtained before submitting quotations / convey order acceptance. Determination of requirements related to the product / service {7.2.1}
       The customer requirements specified in the tender / enquiry / customer order /
       contract documents / order amendment as applicable shall be studied to understand:
       i)   Requirements related to product / service;
      ii)   Delivery time and post delivery service requirements;
     iii)   Statutory and regulatory requirements if any;
     iv)    Requirements necessary for products‟ specific use or known intended use. Review of requirements related to the product {7.2.2}
       The customer requirements determined as above shall be reviewed prior to
       submission of tenders / communication of acceptance of contracts or orders and / or
       acceptance of changes to contracts / orders.
      The review shall be carried out to ensure that:
      a) Customer requirements are adequately and clearly defined;
      b) Resources and capability to meet the specified requirements of the product /
         service, on time delivery and post delivery services exist;
      c) Design and Development capability in case of new product or to upgrade the
         existing products to meet the specific requirements exist;
      d) Differences if any between offer submitted against tender and the actual contract
         or order received from the customer are identified.
       After completion of review of tender / order, if any clarifications or concessions /
       permission for deviations or confirmations required from the customers, the
       respective reviewing authority shall take up with the customer and obtain concession
       or resolve differences if any.
       After completion of the above activities, formal quotation or acceptance of contract /
       order shall be submitted / communicated to the customer. The details of the accepted
       contract / order shall be communicated to all concerned in the company for
       However, the top management has the authority to accept order / contracts which are
       difficult to execute in time as a business strategy.
       In case customers do not provide any written statement of the requirements like order
       through telephone, or internet, such requirements are also reviewed, documented and
       confirmed by return fax / E-mail before its acceptance.
       During execution of the contract or order if any changes in requirements received
       from the customers, the same are also reviewed as above before committing its
       acceptance. Amended communication is also sent to all concerned in the company for
       At any stage of execution of the contract / order if there is any difficulty in meeting
       the customers‟ requirements, the reviewing authority shall take up with the customer
       and resolve the same.
       Details of mutually accepted contract / order amendments shall be communicated to
       all concerned for compliance. Review of order / order amendments received from corporate office at Units
       The reviewing authority as in clause 7.5.2 (ii) above shall also review the
       requirements of the order / contract / order amendments received from Corporate
       Marketing Groups including Regional Offices, to ensure that the requirements are
       clear and capability exits to execute the order and deliver in time. Any clarifications
       required after the review are obtained before accepting it for execution. Monitoring the execution of Order / Contract
       The Unit shall nominate a person for monitoring the progress made in executing the
       orders and ensure on time delivery. In case of any likely delay in delivery, the
       nominated person shall bring it to the notice of the management well in advance to
       enable appropriate actions to ensure timely delivery or in exceptional cases inform
       reviewing authority to take up with customer for delivery time extension. Customer communication {7.2.3}
       Marketing process owners and customer support groups in the units, Customer Care
       Organizations and Regional Offices are responsible for ensuring effective
       arrangements for communicating with the customer so that :

      a) Information related to products / services are made available to the present /
         prospective customers;
      b) Contact points related to enquiries, order handling, amendments etc. are made
         known to the customers;
      c) Customer feedback including customer complaints are dealt effectively.

       The Head of the Unit shall define authority and responsibility and arrangements for
       effective communication related to the above in the Unit supplement. This shall cover
       identification of requirements of different functions / departments of the customer,
       related to the supply of products / services and personnel responsible in the Unit
       meeting the requirements, so that communication channel is clear to all concerned.
       The arrangements for dealing with customers‟ feedback including complaints shall
       cover registration of all such feedback / complaints received by any personnel by any
       means like phone, FAX, E-mail, letters or in person by a nominated central agency in
       the Unit, recording of follow up actions taken in meeting the customer requirements /
       actions on complaints and corrective actions taken to prevent its recurrence. This
       shall also cover preparation of periodic status report to the management for review. Review records
       Records of review and decisions on actions to be taken shall be maintained.
7.5.3 Design and development {7.3}
       Research and Development (R&D) units of the company shall take up design and
       development of new products in order to:

      a) Introduce innovative products to keep ahead of competitors and to delight the
         customers by offering products with features beyond their expectations;
      b) Design and develop products specific to customers against contracts;
      c) Enhance the performance of existing stabilized products. Product identification
       R&D in coordination with marketing and projects planning group shall identify
       products to be designed and developed. The inputs for identifying products are
      market study reports, intelligence on competitors‟ plans, information gathered through
      contacts with the present and future customers and product brief prepared by the
      marketing or any external agencies. A brief report on the product / project identified
      for design and development is put up to management for review, on its viability and
      approval. The brief shall include expected cost, market potential, prospective
      customer etc.
      After selection and approval for design and development of a product, a design and
      development plan is prepared for systematic and time bound actions. Design and development planning {7.3.1}
      Design and development planning plays an important role in effective and efficient
      design and development process and in meeting the customer‟s needs and
      expectations. Factors that contribute in meeting the product performance like safety,
      usability, dependability and maintainability, shall be considered during design and
      development planning. The project leader shall be responsible for preparation of
      design and development plan and head of R&D is authorized to approve the plan.
      The design and development planning shall cover :

     a) Composition of design and development team / group;
     b) Determining competence required for the project;
     c) Identification of training needs in case there is gap between the requirement and
         the available competence;
     d) Identification and action for providing design and development aids and facilities
         like instruments, equipment and computer utilities;
     e) Identification of external resources required in case in house facilities cannot be
      f) Identification of systems / subsystems whose design and development is to be out
         sourced, if any;.
     g) Identification of stages of design and development and time frame for completion
         of each stage either in parallel or in sequence;
     h) Identification of design review, verification and validation stages;
      i) Constitution of design review committees;
      j) Defining authority and responsibility of design groups and interfaces within the
         design group and other functions like Marketing, Production and QA;
     k) Identification of technology to be adopted for the design and construction
      l) Identification of manufacturing processes / technology either existing / proposed;
     m) Identification of subsystem which are already designed that could be used.
      The design and development progress shall be periodically reviewed with respect to
      the plan and updated as the design progresses. Design and development inputs {7.3.2}
      The product brief prepared as in clause No. and any other information
      received on the identified product / project shall be evaluated and design and
      development input document describing the product requirements is prepared.
      The design and development inputs shall include:
      a) Functional and performance requirements;
      b) Product configuration;
      c) Contractual requirements if any;
      d) Product usage environmental conditions;
      e) Applicable statutory and regulatory requirements, if any;
      f) Technology to be adopted;
      g) Interfacing requirement with equipment in operation with the customer where
      h) Dependability or redundancy requirements;
      i) Information derived from previous similar design or subsystems and processes;
      j) Factors that are critical for safe operation / function and maintenance;
      k) Preferred component technology and likely obsolescence;
      l) Product coding scheme and standards.
      The input documents shall be reviewed for its completeness and adequacy and any
      inadequate, ambiguous or conflicting information shall be resolved. Records of design
      input and review shall be maintained. Design and development outputs {7.3.3}
      Design and development outputs shall be documented to enable verification of
      outputs against the design inputs, production, installation, operation, maintenance and
      servicing of the product.
      The design and development outputs shall cover:

      a) Product specifications;
      b) Manufacturing / process specification including fabrication and assembly
         drawings, circuit diagrams, bill of material, purchasing information and packing
      c) Inspection and test procedure with acceptance criteria;
      d) Details of system / product and test software;
      e) Installation, commissioning, operation and maintenance details;
      f) Specific information essential for safe and proper use of the product;
      g) Design validation data to demonstrate that the product meets the specified
         requirements and known intended use;
      h) Configuration control documents both for software and hardware.
      The design and development output documents are reviewed for its adequacy and
      approved prior to its release. Design and development review {7.3.4}
      At the end of each identified stage of the design and development process, the design
      and development results shall be reviewed to ensure that they meet the specified
       requirements. A committee comprising representatives from peer design groups and
       from the same design group shall carry out the review. At certain important stage of
       design process, representatives from Production, Quality Assurance and Component
       approval group shall also form part of the review committee to ascertain
       produciability and quality of the product.
       Records of the results of the reviews and any actions necessary shall be maintained.
       Apart from ensuring that the Design and development results meet the specified
       requirements, the review shall also ensure that the design:

      a) Results in consistent quality and production repeatability;
      b) Satisfies the specified environmental conditions;
      c) Meets the dependability, availability or redundancy, maintainability and
         ergonomics requirements;
      d) Meets the applicable safety standards, Electro Magnetic Interference (EMI) and
         Electro Magnetic Compatibility (EMC) and other statutory and regulatory
         requirements if any;
      e) Is produceable and compatible with the process capability;
      f) Meets the interchangeability as applicable;
      g) Uses appropriate technology which ensures availability of raw materials and
      h) Takes care of possible obsolescence of components.
      i) Design and development verification {7.3.5}
       At identified stages of design and development, verification shall be done to ensure
       that the design and development output satisfies the design and development input
       requirements. Verification is done through conducting tests on laboratory model or
       by alternate calculations to establish that output meets the input requirements.
       Potential failure risk assessment tools like Failure Mode and Effect Analysis (FMEA)
       and reliability prediction tools are used.
       Records of verification of results and any actions necessary shall be maintained. Design and development validation {7.3.6}
       As identified in the design and development plan, validation shall be carried out to
       ensure that the product is capable of meeting the customer‟s specified requirements
       and known intended use.
       The validation is carried out through:

      a) Evaluation test on laboratory model / prototype model;
      b) Field trial test;
      c) Evaluation test on pilot production sample.
       All evaluation tests are conducted at simulated conditions of actual usage or
       operations like climatic and durability conditions. Representative from QA shall be
       involved in the design validation. The customers may also be involved in validation
       test if called for in the contract.
       Records of validation observation and actions proposed if any shall be maintained. Control of design and development changes {7.3.7}
       The design and development review, verification and validation may result in design
       and development changes. In addition design and development changes may also
       arise based on feedback from production and field, corrective and preventive actions
       and as part of performance improvement and / or enhancement. All design and
       development changes are reviewed, verified and validated as appropriate and
       approved by authorized personnel prior to implementation. The effect of the changes
       if any on constituent parts and product already delivered are also evaluated and
       actions if any are proposed. The design change document shall also cover its
       implementation plan.
       Records of review of changes and actions proposed if any shall be maintained.
7.5.4 Purchasing {7.4}
       The material such as components, raw materials and subassemblies procured from
       external sources have direct bearing on the quality of the products / services offered
       by the company and hence the company has developed and implemented an effective
       procurement process. Purchase process {7.4.1}
       The heads of Integrated Material Management (IMM) have the authority to procure
       all the requirements for manufacturing, installation and servicing in line with the
       purchase process described in Company Manual on Materials Management No.
       COR / M / CM / 001.
       The company has put into practice well defined processes for vendor (supplier)
       evaluation, vendor approval, component approval and vendor rating. Criteria for
       selection, evaluation and re-evaluation are also documented. Records of all such
       evaluations and actions to be taken are maintained. Purchasing information {7.4.2}
       Purchasing information on the requirements shall be furnished to the purchase group
       under IMM in the Purchase Requisition (PR) format and where applicable, additional
       information shall also furnished as an enclosure to PR by the originator.
       The information include code, drawings / specifications including its issue No.,
       processes to be followed, requirement of sample approval, specific requirements for
       the items with limited shelf life, packaging requirement, qualification of processes,
       equipment and personnel, delivery schedule and Quality Management System
       requirements where appropriate.
       The information given in PR is incorporated in to purchase enquiry and finally in to
       Purchase Order (PO). Adequacy of purchase information shall be reviewed before
       release of the enquiry and purchase order. Verification of purchased product {7.4.3}
       Purchased products shall be subjected to inspection and testing as per the Inward
       Goods Inspection procedure, prepared by the respective Units. Only products meeting
       specified requirements shall be accepted for use. In unavoidable circumstances
       production may be permitted to use the products before inspection and testing under
       positive recall system. For details refer Clause No.
       In case company or company‟s customers intend to perform verification at the
       supplier‟s premises, verification arrangements are also indicated in the purchase
7.5.5 Production and Service provision {7.5}
       Production and service provision involve many processes either directly or indirectly
       linked, that is, output of one process becomes input to the next process directly or
       indirectly. These processes shall be planned and controlled to ensure quality of the
       product or services offered to both internal and external customers. Control of production and service provision {7.5.1}
       The planned processes shall be performed and controlled through the following

      a) Use of documents describing product or service characteristics or specifications,
         production / assembly drawings, procedures, work instructions, quality plan,
         process / methods layouts, workmanship standards, standard sample, and test /
         inspection methods / procedures as applicable;
      b) Use of suitable production equipment, machines, tools, fixtures and software as
      c) Use of monitoring and measuring devices like instruments, gauges, test
         equipments, test jigs and test software to ensure the quality of product or service
         at all identified control points [refer clause 7.5.1 (f) and 7.5.9 of this section];
      d) Collection and analysis of monitoring and measurement data and taking
         appropriate action for continual improvement;
      e) Safe handling, movement and release / delivery of products;
      f) Providing the defined Post delivery / after sales support requirements to ensure
         that product performs well in the field. Validation of production and service provision processes {7.5.2}
       The processes whose results cannot be fully verified by subsequent inspection and
       test, but deficiencies surface out only after the product is put into use or while
       providing service, shall be validated and periodically revalidated to ensure its
       ability to achieve planned results.
      The validation process involves the following activities as applicable :
      a) Identification of critical process parameters;
      b) Study of capability of the equipment and its approval;
      c) Optimization of critical process parameters / methods and its approval;
      d) Evaluation of the competence of personnel and their qualification;
      e) Periodic revalidation with a view to make continual improvement;
      f) Maintaining records of validation / revalidation.
7.5.6 Identification and traceability {7.5.3}
       All items like components, materials, products, etc., purchased, manufactured, used in
       production / service provision shall be identified at all stages of production, providing
       services and its storage. Identification is made to ensure that only specified items are
       procured, processed or assembled, used and wrong usage is avoided. Control of identification codes
       The designer / components approval group and methods / standardization group shall
       be responsible for issuing and controlling identification codes as applicable. The
       production and service provision process owners shall be responsible for
       identification of items during procurement, storage, processing or assembly, testing,
       packing, shipping and while providing services. The methods of identification are
       either writing the codes on the items or attaching tags / stickers to individual items or
       its containers or route cards as appropriate. Actual methods followed for identification
       shall be given in the respective process documents. However, in case customer has
       specified any coding practice, the same shall be followed. Traceability
       Unique identification of the items for its traceability purposes shall also be practiced
       in the following cases.

      a)      Specific requirements of the customer;
      b)      Item that may require positive recall;
      c)      Critical components / sub systems;
      d)      Products which are proven for repeated field failure;
      e)      Item used are under limited approval.
       The Heads of Units are responsible for issuing suitable procedure for maintaining the
       traceability and respective process owners are responsible for its implementation. Status Marking
       For effective control and to avoid usage of items for unintended purposes, suitable
       status identifications shall be maintained at all stages and specifically at the points
       where items are subjected to monitoring and measurement, indicating the status
       before and after the monitoring and measurement.
       The means of status identification are any one or combination of the following as
       given in the respective process documents:
       i)        Stamp / sticker;
       ii)       Tag / label;
       iii)      Route card / delivery ticket;
       iv)       Physical location with specific marking;
       v)        Accompanying records.
7.5.7 Customer property {7.5.4}
      Appropriate control shall be exercised to protect the value of the properties that
      belongs to customer, whenever received for:

       i) Repair, maintenance, service or upgradation;
      ii) Incorporating in the product to be supplied;
     iii) Reference / usage such as intellectual property like specification, drawing,
            software, etc.

      The control exercised on customer property include:

      a) Product / property identification;
      b) Verification / inspection before its acceptance;
      c) Maintaining identification for Traceability;
      d) Safe handling and storage to prevent damage and deterioration;
      e) Reporting to the customer in case of loss, damage or otherwise found not suitable
         for use;
      f) Maintenance of records of customer property.

7.5.8 Preservation of product {7.5.5}
      Appropriate methods of handling, storage, packing and delivery of the product shall
      be identified, documented and practiced to prevent its damage, deterioration or misuse
      during internal processing, transportation internally / externally and at the time of
      final delivery.
      The methods / processes of handling, storage and movement of products during
      production or providing service shall be developed, documented and practiced by the
      respective process owners based on the category of the products like, electronic
      component, raw materials, hazardous material, software, electronic components
      sensitive to static charges and moisture, products with limited shelf life, PCB
      assemblies and equipment assemblies to protect against damage / deterioration.
      Appropriate packing procedure and drawings including marking shall be prepared by
      the designer / process owners to prevent damage / deterioration during transportation
      and delivery.
      Safe handling and usage and requirements to prevent damage or deterioration during
      installation and operation are communicated to customers through installation and
      maintenance documents.
7.5.9 Control of monitoring and measuring devices {7.6}
      For effective control of the production and service provision processes and to assess
      the quality of the product, it is essential to have an efficient monitoring and
      measurement mechanism. The integrity and accuracy of such monitoring and
      measurement depends on the selection of suitable devices, their proper use and
       Unit Heads shall define authority and responsibility for identification, provision,
       maintenance, calibration / validation of monitoring and measuring devices.

       The respective process owners shall be responsible for providing necessary training or ensuring
       competence of the personnel involved in using the devices and performing monitoring and
       measurements.     Identification / selection of monitoring and measuring devices

       For each monitoring and measurement point / stage identified in the clause no 7.5.1 of
       this Section, appropriate devices with required accuracy, precision and range for each
       of the parameter, characteristic or performance to be monitored and measured shall be
       identified and selected.
       The term monitoring and measuring devices refers to all types of measuring
       instruments, equipments, gauges, test jigs and test software, measurement standard,
       reference standards, etc. Procurement of monitoring and measuring devices
       The process owners or any other designated agency are responsible for initiating
       procurement action. The procurement process is as described in the Company
       Manual on Materials Management No. COR / M / CM / 001.
       The monitoring and measuring devices procured are verified to ensure that they meet
       the specified requirements before its acceptance for use. A control number is
       assigned before it is put into use. Calibration
       In order to ensure validity of measurement results, the measuring devices shall be
       validated against a known reference or calibrated against reference standards traceable
       to national standards. Where results of measurement are used for deciding the quality
       of the product based on its acceptance criteria, such measuring devices shall be
       calibrated periodically. The frequency of calibration is decided based on the
       criticality of the measurement and usage. In addition, some measuring devices are
       verified at specified intervals against a reference sample or standard and adjusted or
       readjusted if necessary.
       The calibration group maintains a master list of measuring devices requiring
       calibration, indicating the control no. of the device, its user location and calibration
       Annual calibration schedule is prepared in consultation with user and communicated
       to user to send the devices for calibration. The calibration group organizes calibration
       as per the schedule either using in house facility or through external agencies ensuring
       traceability to national standards. After successful completion of calibration,
       calibration status sticker is afixed indicating the date of calibration, next due date for
       calibration, calibration limitation if any, wherever applicable. Where no national or
       international standard for calibration exist, such measuring devices are validated
       based on known good reference standard or actual try out in multiple locations. After
       validation / calibration, adjustments made if any are safeguarded with suitable means
       against any tampering.
      The test software shall also be validated to ensure their efficiency to perform the
      specified measurements or to conform its ability to satisfy the intended applications.
      In case during calibration / validation the device is found not conforming to the
      requirements / out of calibration, the calibration group shall inform the user and also
      review the calibration frequency of the device. The user / process owner, shall
      reassess and record the validity of results of the previous measurements taken with the
      measuring device and take appropriate action.
      Records of all calibration and validation results like history cards with control No.,
      calibration frequency, date of calibration, permissible limits of calibration, major
      observations, calibration results, limitations etc. are maintained. Maintenance of monitoring and measuring devices
      The monitoring and measuring devices shall be carefully handled and stored to protect
      against any damage or deterioration. The devices are maintained to ensure its
      capability and performance. Any maintenance activities involving repair which has
      an effect on its accuracy or calibration, shall be followed by calibration prior to its
      usage after repair.


                                    SECTION – 8
                                                                      ISO 9001 – CL No. 8

      To plan and implement monitoring and measurement requirements to ensure product
      quality and effective implementation of Quality Management System. Also to analyze
      the data collected during monitoring and measurement to identify opportunities for
      improvement and to continually improve the Product / Service Quality and the
      effectiveness of the Quality Management System.

      This section covers planning and implementation of monitoring and measurement of
      customer satisfaction, realization processes, products / services and quality cost. It
      also covers internal audit, control of nonconforming products, analysis of data and
      improvement activities including corrective and preventive actions.

      Effective and efficient monitoring and measurement of the processes and product /
      services are the means of assuring and demonstrating to the management and
     customers that planned quality is achieved and sustained. Hence, monitoring and
     measurement processes needed are planned and implemented. Collection and
     analysis of monitoring and measurement data are vital to assess the process
     performance, identify process trends, product / service quality and identify
     opportunities for its continual improvement. The information gathered through data
     analysis is used for factual based decisions.

     Process owners, as defined in Clause No. 5.9.1. of this manual and in the unit
     supplements shall be responsible for planning and implementation of monitoring and
     measurement of processes and products / services. Process owners shall also be
     responsible for analyzing the monitoring and measurement data to identify
     opportunities for improvement and are authorized to take actions for continual
     improvement of the processes and product quality to meet the objectives.
     Product Quality Committees (PQC) constituted in each Unit / Division shall be
     responsible for review of the performance of the products and processes. The PQC is
     authorized to review the process performance and product Quality vis-à-vis objectives
     / targets and decide further actions for effective and continual improvement. The
     constitution and responsibility of PQC are given at Annexure – III.

     Monitoring and measurement of customer satisfaction level and effective
     implementation of Quality Management System (QMS) are performed through review
     of customer related information and internal audit reports respectively. Assessment of
     the ability of processes in achieving the planned results and measurement of product
     characteristics to ensure its conformance to the specified requirements are performed
     at identified control points / stages as documented in the process document and
     quality plans respectively.
     The monitoring and measurement data shall be analyzed to identify opportunities for
     improvement of processes and product / service quality.
     Methods of monitoring and measurement, data collection and use of appropriate
     statistical techniques are described in the respective process documents.
     Recommended common statistical techniques for the above purpose are:

     i) Visual presentations              :      Line Graphs, Bar Charts, Pie Charts,
                                                 Symbol Charts, Gantt Charts,
    ii) Data Analysis and problem         :      Histogram, Scatter Diagram, Pareto
           solving                               Analysis, Cause & effect diagram,
                                                 Check Sheet, Stratification.
    iii) Control Charts                   :      Control Charts for Variables
                                                 e.g. X – R Charts
                                                 Control Charts for Attributes
                                                 e.g.. p- chart, C- chart, np - chart
    iv) Process Capability                :      Normal distribution. Cp, Cpk
       v) Acceptance Sampling                  :      Sampling plan, AQL, AOQL.
      vi) Advanced Techniques                  :      Correlation & regression Analysis,
                                                      Design of Experiments.

8.5.1 Monitoring and measurement of customer satisfaction {8.2.1}
       Customer satisfaction level is one of the measure of performance and effectiveness of
       the Quality Management System. Hence, an effective and efficient process of
       collection, analysis and review of customer related information to assess the customer
       satisfaction level shall be established. The process shall also include to use of results
       of the assessment to enhance customer satisfaction level. Suitable formats for
       customer satisfaction survey shall be developed at unit level covering the following
       factors which influence the customer perceptions of the company. For each factor a
       scale of 1 to 10 or equivalent from low to high level of satisfaction is used.

        i)   Supply of defect free products or services to customer;
       ii)   Timely delivery of products or services;
     iii)    Providing after sales service within / out of warranty period;
      iv)    Response time to customer complaints;
       v)    Dependability / reliability / major outage of the product per month;
      vi)    Product features;
     vii)    Effectiveness of documentation and training.
       Survey shall be carried out periodically. The survey results along with information
       from the following sources are evaluated to asses and arrive at the customer
       perception of the company in meeting their requirements.

       i)    Customer complaints / feed back;
      ii)    Report from media;
     iii)    Sector specific survey by independent agencies or consumer organizations if any;
     iv)     Product return rate / repair data;
      v)     Routine inspection by service personnel.
       Authority, responsibility, methods of collection, analysis of the information and its
       use for continual improvement shall be described in the procedure on customer
       satisfaction level measurements.
       The report on customer perception shall be communicated to all process owners to
       review their processes to enhance the customer satisfaction level. The customer
       perception report is one of the important inputs to the management review.
8.5.2 Internal Audit {8.2.2}
       Periodic internal audits shall be carried out to examine the effective implementation
       of Quality Management System and its conformance to ISO 9001 : 2000 standard.
       The Management Representative (MR) is responsible and authorized for planning and
       organizing internal audits. The frequency of audits shall be decided depending on the
       status and importance of the processes / functions being audited and the results of the
      previous audits. However each process / function shall be audited at least once in six
      Auditors shall be selected and trained to ensure effective and objective audit process.
      Audit shall be carried out only by personnel who are not directly responsible for the
      processes / functions being audited. The MR has the authority to draw the services of
      the auditors as and when required for carrying out audits.
      Process owners or heads of functions shall be responsible for identifying the causes of
      non-conformances reported during audit, timely actions to eliminate them and then
      informing the MR. The auditor who has performed the audit or any other auditor
      nominated by the MR shall be responsible for verification of the corrective actions
      taken, its effectiveness and reporting of verification results in the nonconformity
      Details of responsibility, planning, conducting audits, corrective actions and follow up
      audits, including records to be maintained are given in the system procedure on
      internal audit.
8.5.3 Monitoring and measurement of processes {8.2.3}
      Monitoring and measurement methods to evaluate performance of the processes and
      to take actions for continual improvement shall be identified and implemented. These
      methods shall be suitable for determining the ability of the processes to achieve
      planned results and shall be documented in the respective process documents. The
      respective process owners shall be responsible for defining the methods of monitoring
      and measurement of processes and its improvement.
      The monitoring and measurements of processes includes following as applicable:

        i) Monitoring the process inputs like components, raw materials, documents, data;
       ii) Ensuring availability of process documents, equipments, jigs and fixtures,
           instruments, tools and its maintenance including calibration;
     iii) Ensuring availability of necessary consumable;
      iv) Conducting process capability studies to verify that the machines and equipments
           used are capable of delivering desired quality;
       v) Monitoring and measurement of process parameters requiring regular monitoring
           and control to ensure the quality of the output;
      vi) Ensuring handling, storage and movement of material as per the process document
           to protect it from damage or deterioration;
     vii) Ensuring the use of safety gadgets like, safety gloves, ESD protection devices;
    viii) Monitoring of progress of processes to enable its tracking to the plan;
      ix) Effect of moisture on moisture sensitive devices.
      The results of monitoring and measurement activities are analyzed and used for
      improving the process performance, reduce cycle time, increase throughput or yield,
      reduce wastage and cost. The results of analysis are also used to take appropriate
      corrective actions to ensure that process gives the desired results and its continual
8.5.4 Monitoring and measurement of product {8.2.4}
       Monitoring and measurement of product characteristics shall be planned and
       performed to ensure that product requirements are met. The results of monitoring and
       measurement activities shall be used for continual improvement of product quality.
       The head of the unit Quality Assurance, is responsible for identification of monitoring
       and measurement points in consultation with the concerned process owners. The
       acceptance criteria for each of the product characteristics shall be fixed, in
       consultation with the process owner and R&D. The monitoring and measurement
       points and criteria for acceptance shall be indicated in the respective Product Quality
       Process owner shall be responsible for preparation of procedure for visual / physical
       inspection in consultation with the chief of Unit QA indicating the inspection
       methods, plan of inspection and inspection set up, acceptance criteria, sampling plan
       and formats for recording the inspection / measurement results, as appropriate.
       Wherever necessary, work instructions / work procedures shall be prepared.
       The designers shall be responsible for preparation of test procedures for testing of sub
       assemblies and systems. However, in the case of bought out technology, the
       documents given by the collaborators shall be reviewed for adequacy and if found
       meeting the requirements, the same shall be adopted and used. If found not meeting
       the requirements, the process owner shall develop suitable test procedures.
       The inspection and test procedures shall be adequate for ensuring the product meeting
       the specifications, customer order / contract requirements, applicable National /
       International standards and statutory and regulatory requirements, if any. Stages of Monitoring and Measurement of Products
       The monitoring and measurement activities are performed at the following stages:

       i) Incoming inspection & testing as given in Clause of this manual;
      ii) In-process inspection & testing;
     iii) Final or finished product inspection & testing including packing inspection. Inspection and Testing activities
       Unit Heads are responsible for defining the inspection and testing process owners and
       their authority and responsibility in the unit supplement. Inspection and testing
       activities involve:
       i) Obtaining, scrutinising and understanding appropriate documents of pertinent
           issues related to the product;
      ii) Planning of inspection and testing activities as per the Quality plans and
           inspection and test plans;
     iii) Establishing inspection and test facilities including monitoring and measuring
           devices as identified in Clause No. of this manual and ensuring its
     iv) Carrying out inspection and testing activities as per the documented procedures
           and work instructions / work procedures;
       v) Identifying inspected products / materials with appropriate inspection status;
      vi) Recording inspection and test results with acceptance criteria in appropriate
          formats that form the evidence of conformity to the specified requirements;
     vii) Releasing of products to the next stage of processing, if they meet the specified
    viii) Returning the nonconforming products to the production process owner along
          with the rejection / nonconformance reports;
      ix) Re-inspection and retesting of rejected / nonconforming products after its rework;
       x) Assessing and recording the validity of the previous measuring results when
             measuring device reported, as out of calibration by calibration agency as given
             in clause No. Inspection and Testing of Finished Products
       In case of inspection and testing of finished products, following additional activities
       are also involved :

        i) Ensuring that the product or service has successfully passed all previous stages of
           inspection and testing as per the Product Quality plan;
       ii) Certifying that the product / service meets the specified requirements and / or as
           per the customer order / contract;
      iii) Offering product along with the test results to Unit Quality Assurance or
           Customer Quality Assurance through Unit Quality Assurance or directly and
           obtaining clearance;
      iv) Releasing the product for packing and despatch by the authorized personnel, after
           ensuring the appropriate evidence of conformity to the specified requirements and
           / or as per customer order / contract;
       v) Ensuring the following before packing:
           a) Availability of the products and accessories as per the requirement list;
           b) Authenticity of accompanying documents;
           c) Physical condition of the product;
      vi) Ensuring the following before shipping:
           a) Packing as per the relevant drawings;
           b) Availability of items as per the packing list;
           c) Markings on the packing as per the relevant documents. Positive recall system
       In unavoidable circumstances the materials / items / products are permitted for use or
       further processing before they are inspected or tested for its suitability. Materials /
       items / products which are released prior to inspection or testing are covered under
       positive recall system. Traceability records of such items shall be maintained to recall
       in case non-conformities found later. Positive recall requests are approved by
       competent authority as defined in the unit supplement by the unit head. Positive recall
       system shall not be applicable in the following cases:

      a) At incoming inspection stage when:
         i) Items are supplied by a new vendor;
            ii) Component are identified as critical;
            iii) Items are covered under 100% inspection;
            iv) Subassemblies, subsystem, modules etc.;
      iv) Product / material supplied by the customer.

       b) At in-process Inspection stages when:
          i) Items have under gone special processes;
          ii) Items are covered under 100% inspection.

d) At final / finished product stage, unless authorized by competent authority and / or by the

8.5.5 Monitoring and measurement of quality cost
       Cost of Poor Quality or Quality Cost is considered as one of the important measure of
       efficiency of processes and product quality, which helps in identifying areas for waste
       elimination and quality improvement activities.
The quality cost is broadly categorized as:

        i)   Prevention cost;
       ii)   Appraisal cost;
      iii)   Internal failure cost;
      iv)    External failure cost. Prevention cost
       The cost incurred generally prior to start of production to ensure prevention of non-
       conformances is termed as prevention cost. This includes investments made in the
       activities such as:

     a) Establishing and implementing Quality Management System
     b) Design review;
     c) Vendor development;
     d) Quality Assurance;
     e) Quality training;
e) Maintenance and calibration of measuring devices. Appraisal cost
       The cost incurred in planned appraisal activities relating to purchased products /
       subassemblies at Inward Goods Inspection stage and manufactured products at
       various inspection stages is termed as appraisal cost. Broadly these activities are:

       a) Inspection and testing of purchased items;
       b) In-process and final inspection and testing;
       c) External assistance for testing wherever utilized; Internal failure cost
       The cost incurred due to rework of nonconforming products, scrapping and wastages
       is termed as internal failure cost. The following are examples :

      a)   Rework and repair of non conforming products;
      b)   Excess material drawn to compensate losses;
      c)   Inspection and testing of reworked / repaired items;
      d)   Scrap. External failure cost

       The external failure costs are associated with free repair / rework or replacement of
       products delivered to the customers. It broadly covers expenses due to the following:

      a) Deputation of engineers and technicians to attend field failures and its cost not
         charged to the customers;
      b) After sales service within warranty period;
      c) Free replacement of components / subassemblies / products;
      d) Loss of sales / market.
       Unit Heads are responsible for establishing a suitable system in the unit for capturing
       the quality cost data, its analysis, reporting and its use for continual improvement.

8.5.6 Control of nonconforming product {8.3}
       All products / services which are identified as nonconforming to the specified
       requirements are segregated and appropriate disposal actions are taken to prevent its
       unintended use or delivery. Details of non-conformities observed, including those
       which are corrected in the normal course of work as a routine, are recorded to provide
       valuable information for improving the effectiveness and efficiency of the processes.
       The nonconforming products are disposed off in any one or combination of the

        i) Reviewing and evaluating the effects / impact of the nonconformity;
       ii) Taking action to eliminate the detected nonconformity by rework / repair;
      iii) Authorizing to use it under concession with approval of the authorized personnel,
           where required, clearance from the customer is obtained before its use;
      iv) Finding an alternate use or application;
       v) Total rejection / scrap.
       In case non-conformities related to products are detected after delivery or after its use
       has started , appropriate actions are taken depending on its possible effects either to
       rework or replace such products with the approval of the customer, wherever

       Unit Heads are responsible for defining authority and responsibility for review and
       disposal of the nonconforming products.
       The details on control of nonconforming products are given in the system procedure
       on “control of nonconforming products”.

8.5.7 Analysis of data {8.4}
       Data collected from various sources including the results of monitoring and
       measurement performed, as detailed in this section, are analyzed to assess
       performance against plans, objectives and targets and to identify areas or
       opportunities for improvement.
       Data analysis shall be carried out to determine root causes of observed or likely
       problems and take fact based decisions on improvement actions.
       Respective process owners are responsible for analyzing the data and arriving at
       suitable improvement actions.
       The results of analysis are used for :

        i)   Determination of process trends;
       ii)   Determination of customer satisfaction level;
     iii)    Evaluation of effectiveness and efficiency of the processes;
      iv)    Evaluation of market related performance / competitiveness;
       v)    Bench-marking the performance;
      vi)    Assessment of vendor performance;
     vii)    Determination of quality cost trends;
     viii)   Identifying areas for improvement.

8.5.8 Improvement {8.5}
       The effectiveness of the Quality management System is continually improved as a
       part of the overall company performance improvement. Continual improvement {8.5.1}
       Performance vis-à-vis the objective and targets shall be reviewed and assessed and
       appropriate actions are taken to bridge the gap, if any. Reviewing the original
       objectives and targets for continual improvement shall be the permanent objectives.
       The effectiveness of the planned Quality Management System in realizing the policy
       and meeting the objectives, is continually improved through the use of audit results,
       results of data analysis, corrective and preventive actions, management reviews.
       Review of policy and objectives shall result in continual improvement in overall
       performance of the company. Corrective action {8.5.2}
       Corrective actions are taken to eliminate the causes of non-conformances to prevent
       their recurrence. Information gathered through analysis of data on customer
       complaints and nonconformance reports / rejection reports are evaluated to identify
       the significant problems based on their impact on product performance, dependability
       and safety of the product, customer satisfaction, operating cost and cost of non-
       conformities. The problems so identified are studied in detail to determine the root
       causes and arrive at actions to eliminate such causes.
       Actions include implementation plan and recording of the results of such actions and
       its implementation. Corrective actions taken are reviewed to ensure their effectiveness
       in preventing the recurrence or at least to reduce the frequency of its occurrence. The
       details of corrective actions are given in the system procedure on corrective action. Preventive action {8.5.3}
       To enhance the quality of the product / service, process performance and customer
       satisfaction level, appropriate actions are taken to eliminate the causes of potential
       non-conformities to prevent its occurrence.
       The potential non-conformities are identified through:

       i)   Use of risk analysis tools such as Failure Modes and Effects Analysis;
      ii)   Review of customer needs and expectations;
     iii)   Review of monitoring and measurement data analysis results;
     iv)    Review of concessions and deviations;
      v)    Review of past experience on product and process performance;
     vi)    Review of early warning of approaching-out-of-control-operating conditions or
       The identified potential non-conformities are evaluated and studied to identify its
       possible root causes and actions for eliminating these root causes are determined. The
       actions include implementation plan and recording the results of actions taken. The
       preventive actions taken are reviewed to ensure their effectiveness in preventing the
       occurrence of potential non-conformities.
       The details of actions are given in the „system procedure‟ on preventive action.

                                         Annexure – III

                       PRODUCT QUALITY COMMITTEE (PQC)
1.    Purpose

       i) To review and continually improve the quality of products and processes.;
      ii) To monitor and review the effectiveness of the corrective and preventive actions
           on products and processes, taken by the process owners and suggest further
     iii) To suggest corrective and preventive actions where more than one process owners
           are involved;
     iv) To finalize the objectives and targets for processes whose objectives and targets
           are not fixed as in Cl. No. 5.8;
      v) To review the achievement against the targets and refix targets for continual
           improvement of process performance and product quality;
     vi) To resolve quality problems of products / processes, monitor deviations,
           concessions and their impact;
       vi) To monitor disposal actions of nonconforming products.

2.    Constitution of PQC
      The chief of production is the Chairman of the Product Quality Committee (PQC).
      Quality Assurance Representative is the convener.
The members of the committee are from:

       i)   Manufacturing / Assembly
      ii)   Methods
     iii)   Quality Control / Inspection and Testing
     iv)    Technical / R&D / Engineering
      Representatives from purchase, production planning or any other area may be co-
      opted as and when required.

3.    PQC inputs

       i)   Customer complaints / feed back data related to product quality;
      ii)   First time rejection data of in-process, final inspection and testing;
     iii)   Corrective and preventive actions taken by process owners;
     iv)    Audit reports;
      v)    Resource requirements;
     vi)    Process performance data.
4.    PQC outputs

        i) Decisions on actions to be taken to enhance customer satisfaction;
       ii) Targets for first time rejections at all key points;
     iii) Decisions for improving the effectiveness and efficiency of corrective and
           preventive actions;
      iv) Action plan for corrective and preventive actions involving more than one process
       v) Formation of Quality improvement teams for resolving Quality / Process
      vi) Actions to bridge the gap between the objectives / targets and achievements;
     vii) Objective and targets for products and processes.


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